Why QuidelOrtho (QDEL) Is Up 6.0% After Beating Q3 Estimates And Raising Guidance

• Earlier this year, QuidelOrtho reported third-quarter results that exceeded analyst expectations on both revenue and earnings and raised its full-year guidance, despite posting the slowest revenue growth among major medical device and diagnostics peers.
• The combination of an earnings and revenue beat with a guidance increase, even amid relatively modest growth, highlights how execution and outlook can matter as much as headline growth rates for a diagnostics company formed from the Quidel and Ortho Clinical merger.
• Now we’ll examine how QuidelOrtho’s stronger-than-expected quarter and upgraded full-year outlook influence its longer-term investment narrative and risk profile.

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QuidelOrtho Investment Narrative Recap

To own QuidelOrtho, you need to believe that its broad diagnostics portfolio and integration efforts can offset the structural decline in high-margin COVID testing and legacy product exits. The recent earnings and guidance beat helps near term by reinforcing confidence in execution, but it does not fully resolve the key risk around shrinking COVID revenues and discontinued platforms, or the near term pressure from ongoing net losses and limited cash runway.

Among recent announcements, the updated full year 2025 revenue guidance to US$2.68 billion to US$2.74 billion is most relevant here, because it directly ties the stronger quarter to a clearer top line outlook. That guidance sits against a backdrop of product discontinuations and restructuring, so investors may see it as a test of whether operational improvements, new assays on VITROS systems, and informatics offerings can realistically backfill lost COVID and wound down product contributions.

Yet behind the better than expected quarter, the combination of shrinking COVID revenue and a limited cash runway is something investors should be aware of...

Read the full narrative on QuidelOrtho (it's free!)

QuidelOrtho's narrative projects $3.0 billion revenue and $17.2 million earnings by 2028. This requires 2.6% yearly revenue growth and about a $483.6 million earnings improvement from -$466.4 million today.

Uncover how QuidelOrtho's forecasts yield a $37.67 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently value QuidelOrtho between US$37.67 and US$84.87 per share, underscoring how far opinions can stretch. You should weigh those views against the reality that COVID testing revenue is falling sharply with no clear like for like replacement, and consider what that might mean for future resilience and profitability.

Explore 3 other fair value estimates on QuidelOrtho - why the stock might be worth over 2x more than the current price!

Build Your Own QuidelOrtho Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your QuidelOrtho research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free QuidelOrtho research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate QuidelOrtho's overall financial health at a glance.

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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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