Yahoo Finance QuidelOrtho Corporation Just Missed Revenue By 8.0%: Here's What Analysts Think Will Happen Next
It's been a good week for QuidelOrtho Corporation (NASDAQ:QDEL) shareholders, because the company has just released its latest annual results, and the shares gained 5.7% to US$91.39. Results look mixed - while revenue fell marginally short of analyst estimates at US$3.3b, statutory earnings beat expectations 2.3%, with QuidelOrtho reporting profits of US$9.56 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for QuidelOrtho
Following the recent earnings report, the consensus from seven analysts covering QuidelOrtho is for revenues of US$2.93b in 2023, implying a not inconsiderable 10% decline in sales compared to the last 12 months. Statutory earnings per share are expected to plunge 69% to US$2.58 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.81b and earnings per share (EPS) of US$2.60 in 2023. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$124, implying that the uplift in sales is not expected to greatly contribute to QuidelOrtho's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values QuidelOrtho at US$173 per share, while the most bearish prices it at US$87.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the QuidelOrtho's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 10% by the end of 2023. This indicates a significant reduction from annual growth of 45% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - QuidelOrtho is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on QuidelOrtho. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for QuidelOrtho going out to 2025, and you can see them free on our platform here..
Plus, you should also learn about the 4 warning signs we've spotted with QuidelOrtho (including 2 which are a bit concerning) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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