On July 31, 2024, QuidelOrtho Corp (QDEL, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. QuidelOrtho Corp, a global leader in in-vitro diagnostics, develops and markets rapid diagnostic testing solutions. The company operates in immunoassay and molecular testing, clinical chemistry, and transfusion medicine, with a significant presence in North America, EMEA, China, and other regions.
Performance Overview
QuidelOrtho Corp reported total revenue of $637 million for Q2 2024, surpassing the analyst estimate of $613.54 million. However, the company posted a GAAP diluted loss per share of ($2.20), significantly missing the estimated earnings per share of ($1.13). The revenue decline from $665 million in the prior year period was primarily attributed to lower COVID-19-related revenue.
Financial Achievements and Challenges
Despite the revenue beat, QuidelOrtho faced several challenges. The GAAP operating loss for Q2 2024 was ($118) million, compared to an operating loss of ($27) million in the prior year period. This increase was driven by $31 million in integration-related charges and a $57 million asset impairment charge. Adjusted EBITDA was $90 million, down from $113 million in the prior year period, reflecting a decrease in COVID-19 revenue.
"During the second quarter we performed in line with our expectations across all segments and geographies while concurrently undertaking a significant review of our assets, operations, and opportunities for further company-wide savings," said Brian J. Blaser, President and Chief Executive Officer, QuidelOrtho.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $637 million | $665 million |
| GAAP Diluted Loss Per Share | ($2.20) | ($0.80) |
| Adjusted EBITDA | $90 million | $113 million |
| Adjusted EBITDA Margin | 14% | 17% |
Income Statement Highlights
QuidelOrtho's income statement revealed a net loss of $147.7 million for Q2 2024, compared to a net loss of $53.2 million in Q2 2023. The company's cost of sales, excluding amortization of intangibles, was $361 million, slightly down from $368.6 million in the prior year period. Selling, marketing, and administrative expenses increased to $188.2 million from $179.1 million.
Balance Sheet and Cash Flow
As of June 30, 2024, QuidelOrtho reported total assets of $6.69 billion, down from $8.56 billion at the end of 2023. The company's cash and cash equivalents stood at $107 million. The total liabilities were $3.52 billion, with stockholders' equity at $3.17 billion. The company used $98.6 million in operating activities and $55.5 million in investing activities during the first half of 2024.
Strategic Initiatives and Outlook
QuidelOrtho is undertaking $100 million in annualized cost-saving initiatives expected to benefit the second half of 2024 and the first half of 2025. The company is also refocusing its R&D investments on core growth areas to drive future growth and improve margins.
"As we enter the second half of the year, our strategic priorities remain clear: operate our business to provide exceptional customer satisfaction and patient care at the highest levels of quality and compliance; improve our cost structure, focus on the areas of our product portfolio with the highest growth potential and strengthen our position as a leading in-vitro diagnostic company," Blaser concluded.
For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from QuidelOrtho Corp for further details.
