QuidelOrtho Shares Drop on Cut to Outlook, China Headwinds

Dow Jones08-07
 

Shares of QuidelOrtho fell after the company cut its guidance for the year, citing headwinds from changes to In Vitro Diagnostics pricing guidelines in China.

The stock dropped 22% to $12.75 in after-hours trading on Thursday. Shares closed down 6.7% at $16.32, down 43% this year.

"Demand headwinds in China related to the proposed IVD pricing guidelines and a softer global respiratory environment are continuing to impact our business," Chief Executive Officer Brian Blaser said. "As a result, we are revising our full-year 2026 revenue and earnings guidance to reflect these evolving market dynamics."

The diagnostic healthcare company said it now expects full-year adjusted earnings in a range of 65 cents to 90 cents a share, on revenue of between $2.52 billion and $2.6 billion.

The company had previously forecast adjusted earnings of between $1.80 and $2.00 a share on revenue between $2.7 billion and $2.75 billion. Analysts polled by FactSet were expecting $2.71 billion in revenue.

The company also withdrew its free cash flow guidance for the year.

QuidelOrtho reported a loss of $92.9 million, or $1.36 a share, in the quarter ended June 28. That compares with a loss of $255.4 million, or $3.77 a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were 13 cents a share.

Revenue rose to $630.9 million, up from $613.9 million a year prior. Analysts were expecting $618.7 million in revenue.

 
 

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