QuidelOrtho Shares Plunge

Shares of QuidelOrtho experienced a significant decline of over a quarter on Tuesday following the release of weaker-than-expected fourth-quarter results and the company's full-year outlook. The stock, currently valued at $47.10, dropped by approximately 29% in after-hours trading, while it had already seen a 23% decrease over the past year.

QuidelOrtho, based in San Diego and renowned for its at-home Covid-19 test and other products, reported a profit of $7 million, or 10 cents per share, for the fourth quarter. This marks a decrease from the $30.3 million profit, or 45 cents per share, achieved during the same period the previous year. Analysts had anticipated adjusted earnings of $2.04, however, QuidelOrtho fell short with adjusted earnings of $1.17, according to FactSet.

In addition to disappointing earnings, the company's revenue dropped from $866.5 million to $742.6 million year-over-year, missing analysts' expectations of $797 million.

QuidelOrtho attributed the decline in profits primarily to reduced revenue related to Covid-19. This decline prompted the company to take action in order to mitigate the effects of various macroeconomic factors, such as inflation, the variability of the respiratory season, and constraints within the global supply chain. As a result, Chief Executive Douglas Bryant announced cost reduction measures to address these challenges.

Looking ahead to the current year, QuidelOrtho anticipates revenue ranging from $2.76 billion to $3.07 billion, with adjusted per-share earnings between $2.40 and $3.07. These forecasts fell short of analysts' expectations of $2.95 billion in revenue and adjusted per-share earnings of $5.07.

In conclusion, QuidelOrtho's disappointing fourth-quarter results and full-year outlook have prompted a substantial decline in the company's shares. As they navigate the challenges ahead, QuidelOrtho plans to implement cost reductions to address the impact of various macroeconomic factors on their business.