Why Is QuidelOrtho (QDEL) Down 2.4% Since Last Earnings Report?

Core Viewpoint - QuidelOrtho's recent earnings report shows a significant decline in earnings and revenues, raising concerns about its future performance and leading to a downward revision of estimates by analysts [2][3][13]. Financial Performance - Adjusted EPS for Q1 2024 was 44 cents, down 75.6% year over year, but slightly above the Zacks Consensus Estimate by 1 cent [2]. - GAAP loss per share was $25.50 compared to an EPS of 73 cents in the same quarter last year [2]. - Total revenues for Q1 were $711 million, a decrease of 16% year over year, but beat the Zacks Consensus Estimate by 1.96% [3]. Revenue Breakdown - Excluding COVID-19-related revenues, total revenues were $660.8 million, reflecting a 4.9% increase year over year [3]. - Respiratory revenues fell to $137.3 million, down 48.3%, while non-respiratory revenues were $573.7 million, down 1.2% [4]. - Labs revenues were $356.9 million, down 3.7%, while Transfusion Medicine revenues increased to $160.3 million, up 2.8% [5][6]. Geographical Performance - North America revenues were $433.9 million, down 25.5%, while EMEA revenues increased to $84.8 million, up 4.3% [9]. - Revenues from China were $76.1 million, reflecting a 7.8% increase, and Other regions generated $116.2 million, also up 4.3% [9]. Margin Analysis - Adjusted gross profit declined 25.8% to $337.9 million, with adjusted gross margin contracting 630 basis points to 47.5% [10]. - Adjusted operating income fell 59% to $79.1 million, with adjusted operating margin contracting 1170 basis points to 11.1% [11]. Financial Position - Cash and cash equivalents at the end of Q1 2024 were $78.5 million, down from $118.9 million at the end of Q4 2023 [12]. - Total debt was $2.40 billion, slightly down from $2.41 billion in the previous quarter [12]. Guidance and Market Sentiment - QuidelOrtho has suspended its 2024 financial guidance while assessing the business under new leadership [13]. - Estimates have trended downward, leading to a Zacks Rank of 5 (Strong Sell) for the stock [15]. Industry Comparison - QuidelOrtho operates in the Zacks Medical - Products industry, where competitor Stryker reported revenues of $5.24 billion, a year-over-year increase of 9.7% [16].