Analyst Says QuidelOrtho's Interim Earnings Update Should 'Ease Some Investor Fears' - QuidelOrtho (NASDAQ:QDEL)

QuidelOrtho Corporation QDEL expects total revenues in Q1 FY23 to be $840 million-$850 million, compared to the consensus of $746.75 million, driven by the Labs business unit.
Respiratory product revenue is expected to be $262 million-$267 million, which includes COVID-19 product revenue of $212 million - $217 million. Non-respiratory product revenue is expected to be $578 million-$583 million.
"...I am very pleased with our sustained momentum in the first quarter of 2023, which was ahead of expectations. This strong start to the year was supported by delivering more instruments driving strong results in our Labs business as well as better-than-expected results in the Point of Care business," said Douglas Bryant, President & CEO.
The company expects improvements in the supply chain.
William Blair says that QuidelOrtho (Outperform rating) is a top name it has discussed with investors this year as there has been broad interest in the stock at this valuation.
However, fears around model pacing and the Q4 revenue ramp, COVID and respiratory testing assumptions, lack of insight into the timing of an easing Labs backlog, potential China crosswinds, and lingering Savanna questions have largely kept shares in check.
The preliminary earnings update should ease at least some of these fears, the analyst writes.
William Blair sees an easing backlog as more of an incremental and longer-term tailwind, with benefits continuing to the Lab's business over the next several quarters and year as the backlog continues to be lessened.
Price Action: QDEL shares closed higher by 0.57% at $89.67 on Thursday.

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