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QuidelOrtho Stock Gains Following Q2 Earnings Beat, Margins Expand
QuidelOrtho QuidelOrtho (US:QDEL) ZACKS·2025-08-06 18:06

Core Insights - QuidelOrtho Corporation (QDEL) reported adjusted earnings per share (EPS) of $0.12 for Q2 2025, reversing a loss of $0.07 from the previous year and exceeding the Zacks Consensus Estimate of breakeven [1][6] - The company experienced a revenue decline of 3.6% year-over-year, totaling $613.9 million, but this figure surpassed the Zacks Consensus Estimate by 0.4% [2][6] - QDEL's shares rose nearly 12.8% in after-market trading, although they have decreased 46.8% year-to-date compared to a 4.9% increase in the industry [3] Revenue Breakdown - Respiratory revenues fell to $46.7 million, down 19.5% year-over-year, while Non-Respiratory revenues were $567.2 million, down 2% [2] - Revenue contributions from various business units included Labs at $369.7 million (up 4.4%), Immunohematology at $132.3 million (up 4.3%), and Donor Screening at $13.3 million (down 61.2%) [7][8] Geographical Performance - North America revenues were $310.7 million, reflecting an 11.3% decline, while EMEA revenues increased by 7.6% to $87.3 million [9][10] - Revenues from China were $83.4 million (up 2.2%), and Other regions contributed $132.5 million (up 6.7%) [10] Margin and Cost Management - Adjusted gross margin improved by 150 basis points to 45.7%, with adjusted operating margin increasing by 420 basis points to 9.8% [6][12] - Adjusted operating profit rose by 67.7% year-over-year to $60.2 million, while adjusted selling, marketing, and administrative expenses decreased by 5.9% [11][12] Financial Position - QuidelOrtho ended Q2 2025 with cash and cash equivalents of $151.7 million, up from $127.1 million at the end of Q1 [13] - Total debt increased to $2.61 billion from $2.49 billion in the previous quarter [13] Guidance and Future Outlook - The company reaffirmed its 2025 revenue guidance of $2.60 billion to $2.81 billion, with a consensus estimate of $2.72 billion [15][16] - QDEL anticipates stable growth across most business lines, particularly in Labs and Immunohematology, with expected COVID-19 revenues between $110 million and $140 million [17][21] - Management expects a gross tariff impact of $20–$25 million in 2025, reduced from previous estimates due to effective mitigation strategies [20]