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Will QuidelOrtho's (QDEL) Renewed Cost Discipline Strengthen Its Long-Term Growth Story?

Simply Wall St · 08/08 19:33
  • QuidelOrtho Corporation reported its second quarter 2025 results, with sales of US$613.9 million and a net loss of US$255.4 million, and reiterated its full-year revenue guidance of US$2.60 billion to US$2.81 billion.
  • Management actions, including cost controls and exiting underperforming programs, have improved operational discipline and signaled growing confidence in the company’s forward outlook despite ongoing industry challenges.
  • We’ll examine how QuidelOrtho’s reaffirmed full-year guidance, amid operational changes, may influence its long-term investment narrative.

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QuidelOrtho Investment Narrative Recap

To be a QuidelOrtho shareholder today, you need to believe that the company’s push into international markets, portfolio streamlining, and cost containment can offset steep, ongoing COVID testing revenue declines and return the business to sustainable margin growth. While the company’s reaffirmed 2025 revenue guidance suggests ongoing operational discipline, this does little to mitigate the most important near-term risk: whether QuidelOrtho can replace lost high-margin COVID sales with new drivers quickly enough. The impact of the latest results, including another quarter of losses, does not appear to materially change the risk–catalyst balance in the short term.

Among the company’s recent announcements, the reiteration of full-year revenue guidance after Q2 results stands out as most relevant. This signals management’s confidence in ongoing cost actions and program exits, but the need to stem top-line declines remains critical. Whether these measures prove sufficient to counteract headwinds facing diagnostics demand and product mix will be central to upcoming quarters.

Yet, despite the company’s cost reductions, investors should be aware that continued volume pressure and price erosion in international markets could...

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

QuidelOrtho's outlook anticipates $2.9 billion in revenue and $27.2 million in earnings by 2028. This implies an annual revenue growth rate of 2.4% and an earnings improvement of $493.6 million from current earnings of -$466.4 million.

Uncover how QuidelOrtho's forecasts yield a $43.14 fair value, a 77% upside to its current price.

Exploring Other Perspectives

QDEL Earnings & Revenue Growth as at Aug 2025
QDEL Earnings & Revenue Growth as at Aug 2025

Simply Wall St Community members estimate QuidelOrtho’s fair value from US$43.14 up to US$76.67, reflecting three distinct outlooks. Take into account that execution risk from recent integrations remains a key challenge as you weigh these varied viewpoints.

Explore 3 other fair value estimates on QuidelOrtho - why the stock might be worth just $43.14!

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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.