QuidelOrtho (QDEL) Fiscal Q2 EPS Beats

Core Insights - QuidelOrtho reported a return to positive adjusted earnings per share and improved adjusted profit margins despite a year-over-year revenue decline [1][9] - The company faced a significant GAAP net loss due to non-cash charges related to the discontinuation of the Savanna molecular testing system [1][8] Financial Performance - GAAP revenue for Q2 2025 was $614 million, exceeding analyst expectations of $611.1 million, but down 3.6% from $637 million in Q2 2024 [2][5] - Adjusted non-GAAP earnings per share were $0.12, significantly higher than the consensus estimate of $0.00 [1][2] - Adjusted EBITDA increased to $107 million, reflecting an 18.9% rise from $90 million in the previous year [2][7] - Operating expenses decreased by 8.9% to $215 million compared to $236 million in Q2 2024 [2][7] Revenue Breakdown - Revenue from COVID-19 diagnostics dropped by 20%, while Donor Screening solutions fell by 61.2% [5][6] - Core segments showed modest growth, with laboratory solutions and immunohematology systems each increasing by 4% [6] - Molecular diagnostics revenue surged by 27%, albeit from a low base [6] Strategic Focus - QuidelOrtho aims to enhance recurring revenue streams and expand its product pipeline, focusing on innovation and operational efficiency [4] - The company is navigating a shift away from pandemic-related products while managing relationships with healthcare providers [4] Cost Management - The company achieved $100 million in annualized cost savings through expense-reduction initiatives [7] - These savings contributed to an improved adjusted EBITDA margin, which increased by 3.3 percentage points year over year [7] Future Outlook - Management maintains full-year revenue guidance of $2.60 billion to $2.81 billion for FY2025, with adjusted EBITDA expected between $575 million and $615 million [9] - Anticipated tariff-related costs of $30 million to $40 million for FY2025 are expected to be offset by additional cost savings [9]