Why Is QuidelOrtho (QDEL) Down 24.5% Since Last Earnings Report?

A month has gone by since the last earnings report for QuidelOrtho (QDEL). Shares have lost about 24.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is QuidelOrtho due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for QuidelOrtho Corporation before we dive into how investors and analysts have reacted as of late.

QuidelOrtho Q4 Earnings & Revenues Beat Estimates

QuidelOrtho Corporation delivered adjusted earnings per share of 46 cents in fourth-quarter 2025, down from the year-earlier 63 cents. However, the figure surpassed the Zacks Consensus Estimate by 6.9%.

The adjustments include expenses related to the amortization of intangibles, acquisition and integration costs, among others.

GAAP loss per share for the quarter was $1.92 compared with the year-earlier loss of $2.65.

QDEL’s Revenues in Detail

QuidelOrtho registered revenues of $723.6 million in the fourth quarter of 2025, which increased 2.2% year over year on a reported basis and 1.1% at constant exchange rate (“CER”). However, the figure surpassed the Zacks Consensus Estimate by 3.6%.

In the fourth quarter, Respiratory revenues were $123.3 million (down 13.9% on a reported basis and 14.2% at CER), while Non-Respiratory revenues were $600.3 million (up 6.3% on a reported basis and 3.5% at CER).

QuidelOrtho’s Business Units in Detail

QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening.

In the fourth quarter, Labs revenues were $389.2 million, up 8.1% on a reported basis and 7% at CER.

Immunohematology revenues were $141 million in the fourth quarter, up 3.4% and 1.2% on a reported basis and at CER, respectively.

Donor Screening revenues were $11.8 million in the fourth quarter, down 40.1% and 40.7% on a reported basis and at CER, respectively.

Point of Care revenues amounted to $173.1 million in the fourth quarter, reflecting a decline of 6.4%on a reported basis and 6.9% at CER.

Molecular Diagnostics revenues totaled $8.5million in the fourth quarter, up 25% and 23.7% on a reported basis and at CER, respectively.

QDEL’s Geographical Distribution

Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China and Other regions (which include Latin America, Japan and other Asia-Pacific markets).

Revenues from North America amounted to $390.1million, reflecting a decline of 2.4% on a reported basis as well as at CER.

EMEA revenues amounted to $92.7million, reflecting an increase of 9.3% on a reported basis and a decline of 0.6% at CER.

Revenues from China amounted to $91.7million, reflecting an increase of 5.5% on a reported basis and 5.3% at CER.

Revenues from Japan and Asia Pacific markets amounted to $75.9million, reflecting an uptick of 0.7% on a reported basis and 3.8% at CER.

Revenues from Latin America amounted to $73.2million, reflecting an uptick of 22% on a reported basis and 17% at CER.

QuidelOrtho’s Margin Trend

In the quarter under review, QuidelOrtho’s adjusted gross profit declined 1.8% year over year to $325.2 million. The adjusted gross margin contracted 190 basis points (bps) to 44.9%.

Adjusted selling, marketing and administrative expenses increased 2.3% year over year to $183.7 million. Adjusted research and development expenses declined 2.8% year over year to $45.8 million. Adjusted operating expenses of $229 million increased 1.2% year over year.

Adjusted operating profit totaled $89.3 million, reflecting an 8.7% decline from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter contracted 150 bps to 12.3%.

QDEL’s Financial Position

QuidelOrtho exited the fourth quarter of 2025 with cash and cash equivalents of $169.8 million compared with $98.1 million at the third-quarter end. Total debt (including short-term debt) at the end of fourth-quarter 2025 was $2.65 billion compared with $2.66 billion at the end of the third quarter.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $105.2 million compared with $83 million a year ago.

QuidelOrtho’s 2026 Guidance

QuidelOrtho has provided its financial outlook for 2026.

Total revenues are expected to lie in the range of$2.7-$2.9 billion. The Zacks Consensus Estimate is pegged at $2.71 billion.

For the full-year 2026, QuidelOrtho projects a steady revenue profile anchored by its core Labs business, which is expected to deliver mid-single-digit growth, while Immunohematology is seen growing at a low-single-digit pace. The company also expects the U.S. Donor Screening wind-down to be largely complete by mid-year, removing a lingering drag on results. Point-of-care revenues are assumed to be broadly flat at the midpoint of guidance, indicating a normalized respiratory testing environment.

In Molecular, management anticipates a slight decline tied to the discontinuation of the Savanna platform, with only a minimal revenue contribution expected from the planned LEX Diagnostics acquisition in 2026.

Regionally, China is forecasted to post low-single-digit growth, in line with current market conditions.

Adjusted earnings per share is expected to be between $2.00 and $2.42. The Zacks Consensus Estimate is pegged at $2.28 per share.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -46.44% due to these changes.

VGM Scores

At this time, QuidelOrtho has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise QuidelOrtho has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

QuidelOrtho is part of the Zacks Medical - Products industry. Over the past month, Haemonetics (HAE), a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended December 2025 more than a month ago.

Haemonetics reported revenues of $338.97 million in the last reported quarter, representing a year-over-year change of -2.7%. EPS of $1.31 for the same period compares with $1.19 a year ago.

For the current quarter, Haemonetics is expected to post earnings of $1.28 per share, indicating a change of +3.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Haemonetics. Also, the stock has a VGM Score of B.

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