QuidelOrtho's Q1 2025: Navigating Tariff Challenges and Growth Contradictions in China Market

Tariff impact and mitigation strategies, U.S.-China tariff exposure, China market growth expectations, tariff exposures and mitigation strategies, and R&D cost savings and prioritization are the key contradictions discussed in QuidelOrtho's latest 2025Q1 earnings call.



Revenue Growth Excluding COVID and Donor Screening:
- QuidelOrtho Corporation reported mid-single-digit revenue growth of 6% excluding COVID and donor screening for Q1 2025.
- The growth was primarily driven by strength in the labs business, consistent growth in immunohematology, and a strong flu season.

Improved Operational Efficiency and Cost Savings:
- The company realized a 450 basis point year-over-year improvement in adjusted EBITDA margin and a 68% increase in adjusted diluted earnings per share.
- This was achieved through cost savings from previously announced initiatives, including staffing reductions, decreased travel, and lower outside services expenses.

Labs and Immunohematology Performance:
- The labs business contributed 54% of total company revenue, with a growth rate of 7%, driven by both clinical chemistry and immunoassay testing.
- Immunohematology revenue showed consistent growth of 4%, with particular strength in the EMEA region.

Respiratory Business and COVID Impact:
- The respiratory business grew 11%, excluding COVID, with strong flu sales showing 18% year-over-year growth.
- COVID revenue was $23 million during the quarter, a 53% decline year-over-year, primarily due to the absence of government orders and retail declines.

Tariff Impact Mitigation and Financial Guidance:
- QuidelOrtho estimated the potential tariff headwinds at roughly $30 million to $40 million in 2025, but plans are in place to fully offset these impacts.
- The company maintained its full-year 2025 financial guidance, assuming typical quarterly seasonality and no change in the current tariff situation.