QuidelOrtho (NASDAQ:QDEL) Issues Earnings Results, Misses Expectations By $0.41 EPS

Key Points

• QuidelOrtho reported Q1 EPS of ($0.04), missing estimates by $0.41, and updated FY2026 guidance to $1.80–$2.00 EPS with revenue of $2.7B–$2.75B and adjusted EBITDA of $615M–$630M.
• Management said results were pressured by a much milder respiratory season (CDC ILI visits down ~30%) and paused distributor purchases in China—about a ~$75M midpoint impact—while Q1 free cash flow was negative $67M and net debt/adjusted EBITDA was 4.1x with plans to reduce leverage by year-end.
• The company completed the acquisition of LEX Diagnostics, adding an ultra‑fast molecular point‑of‑care platform with initial instrument placements expected this quarter and assay revenue starting in early 2027.

QuidelOrtho (NASDAQ:QDEL - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.04) EPS for the quarter, missing analysts' consensus estimates of $0.37 by ($0.41), Zacks reports. QuidelOrtho had a positive return on equity of 5.91% and a negative net margin of 41.46%. QuidelOrtho updated its FY 2026 guidance to 1.800-2.000 EPS.

Here are the key takeaways from QuidelOrtho's conference call:

• The Q1 respiratory season was significantly milder and shorter than in 2025, with CDC-reported ILI visits down ~30%, which materially depressed respiratory revenue versus last year.
• Distributors in China paused purchases ahead of draft national IVD pricing guidelines, prompting a downward revision to 2026 guidance and contributing to the revenue shortfall management estimates (part of an approximately $75M midpoint impact).
• Completed the acquisition of LEX Diagnostics, adding an ultra-fast molecular point-of-care platform; initial instrument placements are expected this quarter with measurable assay pull-through and revenue beginning in early 2027.
• Updated full-year 2026 guidance calls for $2.7B–$2.75B revenue, adjusted EBITDA of $615M–$630M (about 23% margin), adjusted EPS $1.80–$2.00, and free cash flow of $100M–$120M, with management reiterating plans for margin expansion.
• Q1 operating cash flow was negative $33M and free cash flow negative $67M with inventory up and net debt/adjusted EBITDA at 4.1x, but the company expects to hit ~3.25–3.5x leverage by year-end through procurement, staffing, and facility consolidation actions.

QuidelOrtho Stock Down 6.1%

Shares of NASDAQ:QDEL traded down $0.76 on Tuesday, hitting $11.66. 3,184,109 shares of the company traded hands, compared to its average volume of 1,769,998. QuidelOrtho has a 52 week low of $10.86 and a 52 week high of $38.99. The company has a quick ratio of 0.90, a current ratio of 1.50 and a debt-to-equity ratio of 1.29. The stock has a 50 day simple moving average of $16.80 and a 200-day simple moving average of $23.93. The company has a market cap of $794.05 million, a PE ratio of -0.70 and a beta of 0.75.

Insider Activity

In related news, Director Matthew Strobeck purchased 10,000 shares of QuidelOrtho stock in a transaction dated Friday, February 13th. The stock was purchased at an average cost of $23.96 per share, for a total transaction of $239,600.00. Following the completion of the acquisition, the director directly owned 27,775 shares of the company's stock, valued at $665,489. The trade was a 56.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Brian J. Blaser purchased 10,540 shares of QuidelOrtho stock in a transaction dated Friday, February 13th. The shares were bought at an average price of $23.59 per share, with a total value of $248,638.60. Following the completion of the acquisition, the chief executive officer directly owned 40,073 shares of the company's stock, valued at approximately $945,322.07. This represents a 35.69% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 23,910 shares of company stock worth $567,973 over the last three months. 0.79% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On QuidelOrtho

Several institutional investors and hedge funds have recently modified their holdings of the stock. Corient Private Wealth LLC bought a new position in shares of QuidelOrtho during the fourth quarter valued at $280,000. T. Rowe Price Investment Management Inc. boosted its position in shares of QuidelOrtho by 7.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 11,832,098 shares of the company's stock valued at $337,925,000 after buying an additional 819,908 shares during the last quarter. Invesco Ltd. boosted its position in shares of QuidelOrtho by 19.4% during the fourth quarter. Invesco Ltd. now owns 3,470,656 shares of the company's stock valued at $99,122,000 after buying an additional 563,893 shares during the last quarter. Moore Capital Management LP purchased a new stake in shares of QuidelOrtho during the fourth quarter valued at $1,260,000. Finally, Balyasny Asset Management L.P. purchased a new stake in shares of QuidelOrtho during the fourth quarter valued at $9,953,000. 99.00% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on QDEL. Zacks Research downgraded QuidelOrtho from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 17th. Wall Street Zen downgraded QuidelOrtho from a "buy" rating to a "hold" rating in a report on Sunday, April 12th. Citigroup increased their price objective on QuidelOrtho from $23.00 to $30.00 and gave the stock a "neutral" rating in a report on Thursday, February 12th. UBS Group decreased their price objective on QuidelOrtho from $30.00 to $17.00 and set a "neutral" rating for the company in a report on Friday, April 10th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of QuidelOrtho in a report on Tuesday, April 21st. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, QuidelOrtho presently has an average rating of "Reduce" and an average price target of $28.25.

QuidelOrtho Company Profile

QuidelOrtho is a global diagnostics company formed through the merger of Quidel Corporation and Ortho Clinical Diagnostics. The combined entity develops, manufactures and markets a broad portfolio of rapid and high-throughput diagnostic solutions across immunoassay, molecular diagnostics and transfusion medicine. Its offerings span point-of-care platforms for acute care testing as well as large-scale automated systems designed for clinical laboratories and blood banks.

The company's product range includes rapid antigen and antibody tests for infectious diseases, molecular assays utilizing nucleic acid amplification technology, and integrated immunodiagnostic analyzers.

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