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Investing.com -- QuidelOrtho Corporation (NASDAQ:QDEL) shares surged 7.4% after the in-vitro diagnostic technologies provider reported second-quarter earnings that beat analyst expectations, driven by successful cost-saving initiatives and solid commercial execution despite lower respiratory and COVID-19 revenue.
The company reported adjusted earnings per share of $0.12 for the second quarter, significantly outperforming the analyst consensus estimate of $0.00. Revenue came in at $614 million, exceeding the consensus estimate of $609.92 million, though it represented a decrease from $637 million in the same quarter last year.
"Our second quarter results demonstrate our continuing commitment to commercial and operational execution," said Brian J. Blaser, President and Chief Executive Officer of QuidelOrtho. "Our team delivered solid top and bottom-line results while also navigating a challenging global environment."
The company’s non-respiratory revenue was $567 million, decreasing 2% YoY both as reported and in constant currency. However, excluding Donor Screening, non-respiratory revenue grew 1% in constant currency, with Labs revenue increasing 4% as reported (5% in constant currency) and Immunohematology revenue growing 4% as reported (3% in constant currency).
Respiratory revenue fell 20% to $47 million, primarily due to lower COVID-19 revenue compared to the prior year period. Despite this decline, the company achieved a significant improvement in profitability, with adjusted EBITDA margin reaching 17%, a 330 basis point improvement from the previous year, driven by the company’s cost-savings initiatives.
QuidelOrtho reaffirmed its full-year 2025 guidance, projecting revenue between $2.60 billion and $2.81 billion, compared to the analyst consensus of $2.72 billion. The company expects adjusted EPS of $2.07 to $2.57, against a consensus estimate of $2.40.
The strong market reaction reflects investor confidence in the company’s ability to execute its strategic initiatives, including realizing $100 million in annualized cost-savings and initiating a major manufacturing site consolidation.
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