QuidelOrtho Q3 Earnings and Revenues Beat Estimates, Margins Expand

Core Insights - QuidelOrtho Corporation (QDEL) reported adjusted earnings per share (EPS) of 80 cents for Q3 2025, a decrease from 85 cents in the previous year, but exceeding the Zacks Consensus Estimate by 56.9% [1] - The company experienced a GAAP loss per share of $10.78, compared to a loss of 30 cents per share in the same quarter last year [1] Revenue Performance - QuidelOrtho's total revenues for Q3 2025 were $699.9 million, down 3.8% year-over-year on a reported basis and 4.6% at constant exchange rates (CER), but still above the Zacks Consensus Estimate by 5.3% [2] - Respiratory revenues fell to $112.3 million, a decline of 32.1% on a reported basis and 32.2% at CER, while Non-Respiratory revenues increased to $587.6 million, up 4.6% on a reported basis and 3.5% at CER [2] Business Unit Breakdown - QuidelOrtho's revenues are derived from five business units: Labs, Immunohematology, Donor Screening, Point of Care, and Molecular Diagnostics [3] - Labs revenues were $373.8 million, reflecting a 5% increase on a reported basis and 4.4% at CER [3] - Immunohematology revenues reached $142 million, up 7.7% on a reported basis and 5.2% at CER, while Donor Screening revenues dropped to $14.7 million, down 47.3% on a reported basis and at CER [4] - Point of Care revenues were $164.6 million, down 20% on a reported basis and 20.3% at CER, and Molecular Diagnostics revenues totaled $4.8 million, down 14.3% on a reported basis and 14.8% at CER [5][4] Geographical Revenue Distribution - North America revenues were $381.4 million, reflecting a decline of 12.6% on a reported basis and 12.5% at CER [6] - EMEA revenues increased to $91.8 million, up 9.3% on a reported basis and 2.4% at CER [6] - Revenues from China amounted to $84.6 million, reflecting a 5.2% increase on a reported basis and 4.8% at CER [7] - Other regions generated $142.1 million in revenues, up 12.3% on a reported basis and 12% at CER [9] Margin and Expense Analysis - Adjusted gross profit declined 4.6% year-over-year to $341 million, with an adjusted gross margin contracting 50 basis points to 48.7% [10] - Adjusted operating profit totaled $119.6 million, reflecting a 0.1% improvement from the prior-year quarter, with an adjusted operating margin expanding 70 basis points to 17.1% [11] Financial Position - QuidelOrtho ended Q3 2025 with cash and cash equivalents of $98.1 million, down from $151.7 million at the end of Q2 2025 [12] - Total debt at the end of Q3 2025 was $2.66 billion, compared to $2.61 billion at the end of Q2 2025 [12] - Cumulative net cash used in operating activities was $26.7 million, compared to net cash provided of $19.3 million a year ago [12] Guidance and Outlook - QuidelOrtho reiterated its financial outlook for 2025, projecting total revenues in the range of $2.68 billion to $2.74 billion, with the Zacks Consensus Estimate at $2.71 billion [13] - The company expects stable growth across most business lines, particularly in Labs and Immunohematology, with mid-single-digit growth anticipated in China [14] - For the full year, COVID-19 revenues are projected to be between $70 million and $100 million, with adjusted EPS expected to be between $2.00 and $2.15, compared to the Zacks Consensus Estimate of $2.28 [15] Overall Performance - QuidelOrtho's Q3 2025 results exceeded expectations, with both earnings and revenues beating the Zacks Consensus Estimate, driven by strong performance in Labs and Immunohematology [16] - However, the decline in respiratory revenues and decreases in Donor Screening, Point of Care, and Molecular Diagnostics units present challenges [17]