QuidelOrtho (QDEL): Evaluating Valuation After Q3 Earnings Miss, Guidance Cut, and Operational Hurdles

QuidelOrtho (QDEL) just released its third quarter earnings, highlighting a mix of declining revenues, a large net loss, and a lowered full-year earnings outlook. The company is also facing several operational headwinds.

See our latest analysis for QuidelOrtho.

Despite a recent rally that saw QuidelOrtho's share price jump nearly 11% in a single day, the broader trend has been decidedly negative, with a 1-year total shareholder return of -46.8% and a year-to-date share price return of -51.4%. While new FDA approvals and operational initiatives hint at long-term resilience, momentum is still fading as the company works through ongoing challenges.

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With QuidelOrtho now trading at a substantial discount to analyst price targets after significant losses and a lowered outlook, investors are left wondering whether there is real value on the table or if the market is simply bracing for more pain to come.

Most Popular Narrative: 41.9% Undervalued

With the most widely followed narrative placing QuidelOrtho’s fair value at $37.67 compared to a last close of $21.89, the market is currently offering deep pessimism relative to future expectations. This sets up a stark valuation gap and raises major questions about the numbers driving this difference.

Continued operational improvements, such as indirect procurement cost reductions, manufacturing site consolidation, and successful ERP system integration, are yielding significant margin and EBITDA gains. Incremental savings are expected to directly benefit net margins and EPS into 2026 and beyond.

Read the complete narrative.

Curious what’s powering this premium valuation? The narrative hinges on assumptions about sharply rising margins and the impact of massive cost savings yet to reach the bottom line. See what controversial forecasts and future profit multiples are fueling the bold fair value; they might catch you off guard.

Result: Fair Value of $37.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing COVID-related revenue declines and discontinued product lines could undermine QuidelOrtho's recovery narrative, particularly if no new growth drivers emerge soon.

Find out about the key risks to this QuidelOrtho narrative.

Build Your Own QuidelOrtho Narrative

If you want to dig into the numbers and interpret the story differently, you can build a personalized narrative in just a few minutes, your way with Do it your way.

A great starting point for your QuidelOrtho research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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