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Why Is QuidelOrtho (QDEL) Down 2.4% Since Last Earnings Report?
QDELQuidelOrtho (QDEL) ZACKS·2024-06-07 16:36

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 25.50comparedtoanEPSof73centsinthesamequarterlastyear[2].−TotalrevenuesforQ1were25.50 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 660.8million,reflectinga4.9660.8 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 573.7million,down1.2573.7 million, down 1.2% [4]. - Labs revenues were 356.9 million, down 3.7%, while Transfusion Medicine revenues increased to 160.3million,up2.8160.3 million, up 2.8% [5][6]. Geographical Performance - North America revenues were 433.9 million, down 25.5%, while EMEA revenues increased to 84.8million,up4.384.8 million, up 4.3% [9]. - Revenues from China were 76.1 million, reflecting a 7.8% increase, and Other regions generated 116.2million,alsoup4.3116.2 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 79.1million,withadjustedoperatingmargincontracting1170basispointsto11.179.1 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 118.9millionattheendofQ42023[12].−Totaldebtwas118.9 million at the end of Q4 2023 [12]. - Total debt was 2.40 billion, slightly down from 2.41billioninthepreviousquarter[12].GuidanceandMarketSentiment−QuidelOrthohassuspendedits2024financialguidancewhileassessingthebusinessundernewleadership[13].−Estimateshavetrendeddownward,leadingtoaZacksRankof5(StrongSell)forthestock[15].IndustryComparison−QuidelOrthooperatesintheZacksMedical−Productsindustry,wherecompetitorStrykerreportedrevenuesof2.41 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].