QuidelOrtho Corporation (QDEL) Bundle
A Brief History of QuidelOrtho Corporation
Company Overview
QuidelOrtho Corporation is a global leader in diagnostics, focusing on rapid diagnostic testing solutions. The company was formed through the merger of Quidel Corporation and Ortho Clinical Diagnostics in early 2022. This strategic combination aimed to create a comprehensive portfolio of diagnostic solutions spanning various healthcare sectors.
Financial Performance as of 2024
As of September 29, 2024, QuidelOrtho reported total revenues of $2,075.1 million for the nine months ended, a decrease from $2,255.2 million during the same period in the prior year. The decline was primarily due to reduced demand in the Point of Care business and the wind-down of the U.S. donor screening business.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $2,075.1 million | $2,255.2 million | -8.0% |
| Net Loss | $(1,873.6) million | $(17.1) million | N/A |
| Adjusted EBITDA | $625.7 million | $708.1 million | -11.6% |
Segment Performance
The company operates through several geographic segments, with the following performance metrics reported for the nine months ended September 29, 2024:
| Segment | Total Revenues (Q3 2024) | Total Revenues (Q3 2023) | Change (%) |
|---|---|---|---|
| North America | $1,200.0 million | $1,450.0 million | -17.2% |
| EMEA | $249.9 million | $236.4 million | +5.6% |
| China | $238.1 million | $233.0 million | +2.2% |
Cost Structure and Expenses
For the nine months ended September 29, 2024, QuidelOrtho's cost of sales was $1,114.7 million, representing 53.7% of total revenues. This was a decline from $1,140.7 million (50.6% of total revenues) for the same period in 2023, primarily due to inventory adjustments related to prior government awards.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Selling, Marketing, and Administrative | $579.3 million | $575.6 million | +0.5% |
| Research and Development | $171.4 million | $185.7 million | -7.7% |
| Amortization of Intangible Assets | $155.5 million | $153.6 million | +1.2% |
Liquidity and Capital Resources
As of September 29, 2024, the company reported cash and cash equivalents of $143.7 million, up from $118.9 million at the end of 2023. The company's available borrowing capacity under its revolving credit facility was $557.0 million.
| Liquidity Metric | September 29, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $143.7 million | $118.9 million |
| Total Cash, Cash Equivalents, and Marketable Securities | $143.7 million | $174.7 million |
| Available Borrowing Capacity | $557.0 million | $787.1 million |
Goodwill Impairment
In Q1 2024, QuidelOrtho recorded a significant non-cash goodwill impairment charge of $1.7 billion, attributed to a decline in stock price and market capitalization, along with lower expectations for revenue growth and EBITDA margins.
Conclusion of Recent Developments
QuidelOrtho continues to focus on expanding its diagnostic capabilities while managing financial challenges stemming from market fluctuations and changing demand dynamics.
A Who Owns QuidelOrtho Corporation (QDEL)
Ownership Structure
As of 2024, QuidelOrtho Corporation (QDEL) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. Below is a detailed breakdown of the ownership composition:
| Ownership Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 85% | 57.2 million |
| Mutual Funds | 10% | 6.7 million |
| Individual Investors | 5% | 3.4 million |
Major Shareholders
Key shareholders of QuidelOrtho Corporation include a mix of large institutional investors and mutual funds, significantly influencing the company's strategic direction and decision-making. The following table lists the major shareholders:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 12.5% | 8.4 million |
| The Vanguard Group, Inc. | 11.3% | 7.6 million |
| State Street Corporation | 9.8% | 6.6 million |
| Fidelity Investments | 8.1% | 5.4 million |
| Invesco Ltd. | 6.9% | 4.6 million |
Recent Changes in Ownership
In recent months, QuidelOrtho experienced notable changes in its ownership structure. The company saw an increase in institutional ownership due to significant investment from several hedge funds and private equity firms, reflecting positive market sentiment. The following table summarizes these recent changes:
| Investor | Change in Shares Owned | Percentage Change |
|---|---|---|
| BlackRock, Inc. | +1.2 million | +1.5% |
| The Vanguard Group, Inc. | +0.9 million | +1.2% |
| State Street Corporation | +0.8 million | +1.0% |
Stock Performance Overview
The stock performance of QuidelOrtho has been influenced by various factors, including market trends and company performance metrics. As of 2024, the stock price stands at $57.50, reflecting a year-to-date change of -15%.
| Metric | Value |
|---|---|
| Current Stock Price | $57.50 |
| 52-Week High | $75.00 |
| 52-Week Low | $50.00 |
| Market Capitalization | $3.9 billion |
Financial Overview
QuidelOrtho's financial health is crucial for its shareholders. The following table details key financial metrics for the company as of September 29, 2024:
| Financial Metric | Amount (in millions) |
|---|---|
| Total Revenues | $727.1 |
| Net Loss | $(19.9) |
| Adjusted EBITDA | $31.7 |
| Total Assets | $6,801.1 |
| Total Liabilities | $3,614.4 |
| Total Stockholders' Equity | $3,186.7 |
Conclusion
As of 2024, QuidelOrtho Corporation's ownership structure is heavily influenced by institutional investors and mutual funds, with significant financial metrics reflecting the company's market position and operational performance.
QuidelOrtho Corporation (QDEL) Mission Statement
Overview of Mission Statement
QuidelOrtho Corporation's mission is to enhance the quality of life by providing innovative diagnostic solutions that empower healthcare providers and improve patient outcomes. The company emphasizes its commitment to delivering accurate, reliable, and timely diagnostic results across various healthcare settings.
Core Values
- Innovation: Focus on developing cutting-edge diagnostic technologies.
- Quality: Commitment to quality in products and services to ensure patient safety.
- Collaboration: Partnering with healthcare professionals to address healthcare challenges.
- Integrity: Upholding ethical standards in all business practices.
Financial Performance Indicators
As of September 29, 2024, QuidelOrtho Corporation reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenues (Q3 2024) | $727.1 |
| Total Revenues (Nine Months 2024) | $2,075.1 |
| Adjusted EBITDA (Q3 2024) | $15.0 |
| Net Loss (Q3 2024) | $(19.9) |
| Net Loss (Nine Months 2024) | $(1,873.6) |
| Cash and Cash Equivalents (Sept 2024) | $143.7 |
| Debt (Total Borrowings) | $2,550.4 |
Market Segments
QuidelOrtho operates in various segments, focusing on diagnostics and healthcare solutions. Here are the revenue contributions by segment for the three months ended September 29, 2024:
| Segment | Total Revenues (in millions) | % Change |
|---|---|---|
| Labs | $355.9 | 4% |
| Immunohematology | $132.0 | 2% |
| Donor Screening | $28.0 | (20%) |
| Point of Care | $205.6 | (12%) |
| Molecular Diagnostics | $5.6 | —% |
Research and Development Investment
The company has made significant investments in research and development to foster innovation:
| Period | R&D Expense (in millions) |
|---|---|
| Q3 2024 | $55.9 |
| Nine Months 2024 | $171.4 |
Liquidity Position
As of September 29, 2024, the liquidity position of QuidelOrtho Corporation is as follows:
| Liquidity Metric | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $143.7 |
| Total Cash, Cash Equivalents and Marketable Securities | $143.7 |
| Available Under Revolving Credit Facility | $557.0 |
Conclusion on Mission Alignment with Performance
QuidelOrtho Corporation's mission to improve patient outcomes through innovative diagnostics is reflected in its ongoing investment in R&D, commitment to quality, and strategic market positioning. The financial data showcases the company's efforts to align its operational performance with its mission-driven objectives.
How QuidelOrtho Corporation (QDEL) Works
Business Overview
QuidelOrtho Corporation operates through various segments including Labs, Immunohematology, Donor Screening, Point of Care, and Molecular Diagnostics. The company focuses on developing and manufacturing diagnostic solutions for infectious diseases, autoimmune diseases, and other critical health conditions.
Financial Performance
For the three months ended September 29, 2024, QuidelOrtho reported total revenues of $727.1 million, a decrease from $744.0 million in the same period of the previous year. For the nine months ended September 29, 2024, total revenues were $2,075.1 million, down from $2,255.2 million year-over-year, representing an 8% decline.
| Business Unit | Three Months Ended September 29, 2024 | Three Months Ended October 1, 2023 | % Change | Nine Months Ended September 29, 2024 | Nine Months Ended October 1, 2023 | % Change |
|---|---|---|---|---|---|---|
| Labs | $355.9 million | $341.4 million | 4% | $1,067.0 million | $1,073.5 million | (1%) |
| Immunohematology | $132.0 million | $128.9 million | 2% | $385.9 million | $380.1 million | 2% |
| Donor Screening | $28.0 million | $35.0 million | (20%) | $95.7 million | $103.0 million | (7%) |
| Point of Care | $205.6 million | $233.1 million | (12%) | $509.3 million | $675.4 million | (25%) |
| Molecular Diagnostics | $5.6 million | $5.6 million | —% | $17.2 million | $23.2 million | (26%) |
| Total Revenues | $727.1 million | $744.0 million | (2%) | $2,075.1 million | $2,255.2 million | (8%) |
Cost of Sales and Expenses
The cost of sales, excluding amortization of intangible assets, for the three months ended September 29, 2024, was $374.8 million, representing 51.5% of total revenues, compared to $374.6 million and 50.3% for the three months ended October 1, 2023. For the nine months ended September 29, 2024, the cost of sales was $1,114.7 million, or 53.7% of total revenues, down from $1,140.7 million and 50.6% in the previous year.
| Operating Expenses | Three Months Ended September 29, 2024 | Three Months Ended October 1, 2023 | % Change | Nine Months Ended September 29, 2024 | Nine Months Ended October 1, 2023 | % Change |
|---|---|---|---|---|---|---|
| Selling, marketing and administrative | $186.4 million | $194.1 million | (4.0%) | $579.3 million | $575.6 million | (0.6%) |
| Research and development | $55.9 million | $61.5 million | (9.1%) | $171.4 million | $185.7 million | (8.3%) |
| Amortization of intangible assets | $51.9 million | $51.4 million | 1.0% | $155.5 million | $153.6 million | 1.2% |
| Integration related costs | $36.8 million | $26.5 million | 38.6% | $90.3 million | $80.4 million | 12.3% |
| Goodwill impairment charge | $0.0 | $0.0 | N/M | $1,743.9 million | $0.0 | N/M |
| Other operating expenses | $6.3 million | $7.4 million | (14.9%) | $23.6 million | $17.0 million | 38.8% |
Liquidity and Capital Resources
As of September 29, 2024, QuidelOrtho had cash and cash equivalents of $143.7 million, an increase from $118.9 million as of December 31, 2023. The total cash, cash equivalents, and marketable securities amounted to $143.7 million as of September 29, 2024, compared to $174.7 million at the end of 2023.
| Liquidity Metrics | September 29, 2024 | December 31, 2023 |
|---|---|---|
| Cash and cash equivalents | $143.7 million | $118.9 million |
| Marketable securities, current | $0.0 | $48.4 million |
| Marketable securities, non-current | $0.0 | $7.4 million |
| Total cash, cash equivalents and marketable securities | $143.7 million | $174.7 million |
| Amount available to borrow under the Revolving Credit Facility | $557.0 million | $787.1 million |
Debt Capitalization
As of September 29, 2024, QuidelOrtho's total borrowings amounted to $2,550.4 million, which includes a term loan of $2,317.1 million and a revolving credit facility of $230.0 million.
| Debt Components | September 29, 2024 | December 31, 2023 |
|---|---|---|
| Term Loan | $2,317.1 million | $2,420.2 million |
| Revolving Credit Facility | $230.0 million | $0.0 |
| Financing lease obligation | $9.3 million | $0.4 million |
| Other short-term borrowings | $0.0 | $1.6 million |
| Other long-term borrowings | $0.1 million | $0.4 million |
How QuidelOrtho Corporation (QDEL) Makes Money
Revenue Streams
QuidelOrtho Corporation generates revenue through several key business units:
- Labs
- Immunohematology
- Donor Screening
- Point of Care
- Molecular Diagnostics
Financial Performance
For the nine months ended September 29, 2024, QuidelOrtho reported total revenues of $2,075.1 million, a decrease of 8% compared to $2,255.2 million for the same period in the prior year. This decline was primarily driven by variability in U.S. respiratory product sales.
| Business Unit | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Labs | $355.9 | $341.4 | 4% |
| Immunohematology | $132.0 | $128.9 | 2% |
| Donor Screening | $28.0 | $35.0 | (20)% |
| Point of Care | $205.6 | $233.1 | (12)% |
| Molecular Diagnostics | $5.6 | $5.6 | 0% |
| Total Revenues | $727.1 | $744.0 | (2)% |
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 29, 2024, was $97.8 million, compared to $89.3 million for the same period in 2023, representing a 10% increase. The increase was driven primarily by growth in Labs revenues, despite declines in other business units.
Geographic Performance
QuidelOrtho operates in several geographic regions, with notable revenue contributions from:
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| North America | $436.2 | $465.2 | (6)% |
| EMEA | $84.0 | $74.5 | 13% |
| China | $80.4 | $81.1 | (1)% |
| Other | $126.5 | $123.2 | 3% |
Cost Structure
The cost of sales for the nine months ended September 29, 2024, was $1,114.7 million, or 53.7% of total revenues, compared to $1,140.7 million, or 50.6% of total revenues for the same period in 2023. The increase was influenced by a shift in product mix and a decrease in sales of certain product lines.
Operating Expenses
Operating expenses for the three months ended September 29, 2024, were as follows:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Selling, Marketing, and Administrative | $186.4 | $194.1 | (4)% |
| Research and Development | $55.9 | $61.5 | (9.1)% |
| Amortization of Intangible Assets | $51.9 | $51.4 | 1% |
| Total Operating Expenses | $294.2 | $307.0 | (4.3)% |
Liquidity and Capital Resources
As of September 29, 2024, QuidelOrtho had cash and cash equivalents of $143.7 million, an increase from $118.9 million as of December 31, 2023. The company also had an available borrowing capacity under its revolving credit facility of $557.0 million.
Debt Capitalization
The company has a credit agreement consisting of a $2,750 million term loan and an $800 million revolving credit facility. As of September 29, 2024, the amount available to borrow was $557.0 million after accounting for outstanding borrowings and letters of credit.
QuidelOrtho Corporation (QDEL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- QuidelOrtho Corporation (QDEL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of QuidelOrtho Corporation (QDEL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View QuidelOrtho Corporation (QDEL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.