QuidelOrtho Corporation (NASDAQ:QDEL) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

There's been a major selloff in QuidelOrtho Corporation (NASDAQ:QDEL) shares in the week since it released its quarterly report, with the stock down 25% to US$20.35. Revenues of US$700m beat expectations by a respectable 5.5%, although statutory losses per share increased. QuidelOrtho lost US$10.78, which was 2,269% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from QuidelOrtho's seven analysts is for revenues of US$2.77b in 2026. This would reflect a satisfactory 2.2% increase on its revenue over the past 12 months. Statutory losses are forecast to balloon 98% to US$0.36 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.78b and earnings per share (EPS) of US$0.44 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

View our latest analysis for QuidelOrtho

The consensus price target held steady at US$37.67, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on QuidelOrtho, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$22.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that QuidelOrtho's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that QuidelOrtho is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts are expecting QuidelOrtho to become unprofitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that QuidelOrtho's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple QuidelOrtho analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with QuidelOrtho , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.