NEW YORK – QuidelOrtho said Wednesday that its first quarter revenues dipped about 3 percent year over year, but the firm still beat analysts' average estimate on the top and bottom lines.
For the three months ended March 30, the San Diego-based developer and manufacturer of diagnostic systems and assays reported $692.8 million in total revenues, down from $711.0 million a year ago but above the consensus Wall Street estimate of $691.9 million.
Excluding COVID-19 related revenues and donor screening revenues, revenues were up about 5 percent year over year, QuidelOrtho said.
On a call with investors following Wednesday evening, QuidelOrtho's CEO Brian Blaser noted that the results were driven by the firm's Labs business as well as stable growth in immunohematology and a strong flu season.
Non-respiratory revenues were slightly down year over year to $573 million from $573.7 million in Q1 2024, while respiratory revenues dropped about 13 percent to $119.8 million from $137.3 million.
QuidelOrtho's CFO Joe Busky said on the call that, excluding COVID-related sales — which declined 53 percent over the prior-year quarter — the firm's respiratory business grew 11 percent year over year, with 18 percent growth in flu sales.
By segment, Labs revenues were up about 4 percent to $373.1 million from $356.9 million a year ago, while Immunohematology revenues inched up 1 percent to $128.5 million from $127.0 million.
Meanwhile, Donor Screening revenues shrank 62 percent to $12.8 million from $33.3 million in Q1 2024 as QuidelOrtho continued winding down the US portion of that business, it said. Point of Care revenues contracted 9 percent to $170.8 million from $186.6 million, and Molecular Diagnostics revenues climbed almost 6 percent to $7.6 million from $7.2 million.
In a statement, QuidelOrtho President and CEO Brian Blaser said, "We delivered solid first quarter performance driven by growth in our Labs business and the strength of our recurring revenue business model. Our ongoing operational improvement initiatives contributed meaningfully to our results."
Additionally, on the investor call Blaser specified that excluding COVID sales QuidelOrtho's point of care business grew 8 percent. Although COVID testing in Q1 was down year over year, this was offset by strong flu sales, resulting in 18 percent growth led by the firm's combination COVID/flu test, Blaser said.
Within Molecular Diagnostics, Blaser noted that QuidelOrtho is in the final stages of its clinical trial for the Savanna instrument and respiratory panel, specifically completing the verification and validation testing. The firm expects to submit the instrument and assay this summer for potential US Food and Drug Administration approval or clearance, he said.
"Molecular continues to be one of the fastest growing segments in diagnostics — we want to participate in that and benefit from that," Blaser said on the call.
Blaser also highlighted steps QuidelOrtho has taken to mitigate a potential $30 million to $40 million in tariff headwinds related to the firm's global footprint.
Specifically, the majority of the firm's manufacturing is based in the US and it has invested approximately $1 billion in US-based manufacturing and R&D.
The firm also has internal and third-party manufacturing located in the UK, China, Europe, and Mexico, Blaser said. "These locations further our strategy of being close to our important customers as well as reinforcing our business continuity objectives."
Blaser also said that QuidelOrtho's mitigation efforts to date — including changing material sourcing, inventory repositioning, shifting to alternate suppliers within its supply chain, and implementing select pricing actions and cost reductions — are projected to fully offset tariff impacts as they stand today.
QuidelOrtho's net loss for Q1 2025 was $12.7 million, or $.19 per share, compared to a net loss of $1.71 billion, or $25.50 per share, a year ago, when the firm recognized a $1.74 billion goodwill impairment charge. Adjusted EPS for Q1 2025 was $.74 and beat the consensus Wall Street estimate of $.59.
Its R&D spending was trimmed 10 percent to $53.2 million from $59.2 million a year ago, while its SG&A costs were decreased 9 percent to $187.0 million from $204.7 million a year ago. On the call, Busky said the savings was related to staffing reductions, decreased travel, and lower outside services expense.
QuidelOrtho exited the first quarter with $127.1 million in cash and cash equivalents.
For full-year 2025, the company maintained its previous guidance of $2.60 billion to $2.81 billion in total revenues. Adjusted EPS is expected to be in the range of $2.07 to $2.57.
Busky said on the call that the firm expects COVID revenues of between $110 million and $140 million in 2025 in part related to an anticipated summer spike of COVID infections. "Of course, we will monitor this closely and will look to mitigate any impact with further cost reductions if the seasonal cases don't materialize as expected," he said.
In Thursday morning trading on the Nasdaq shares of QuidelOrtho were up 34 percent to $34.58.