What happened
QuidelOrtho(NASDAQ: QDEL) put a collective smile on the faces of its investors at the end of the week. After announcing estimates-beating preliminary results after market hours Thursday, the diagnostics company's share price shot 5% higher the following trading session. That was more than good enough to top the S&P 500 index, which slipped by 0.2% on the day.
So what
No doubt happily, QuidelOrtho announced that it should book $840 million to $850 million in revenue for the inaugural quarter of 2023. That's significantly higher than the average of nearly $747 million estimated by analysts tracking the specialty healthcare company's stock.
Respiratory products, an important segment for QuidelOrtho, are expected to contribute $262 million to $267 million to this tally. COVID-19 products should comprise far and away the bulk of the segment, coming in at $212 million to $217 million.
Non-respiratory product sales will also be substantial. The company is guiding for $578 million to $583 million in revenue from these offerings. QuidelOrtho said that this was attributable to the performance of its labs unit, which benefited from a $21 million settlement linked to a collaboration agreement.
Now what
In the press release unveiling the provisional numbers, QuidelOrtho quoted CEO Douglas Bryant as saying he was "very pleased with our sustained momentum in the first quarter of 2023, which was ahead of expectations."
Sounding a very confident note, he added, "As we look ahead, our supply chain is improving, we are focused on our key growth drivers and we are confident in our ability to deliver sustainable high-single-digit growth over the coming years."
QuidelOrtho is scheduled to release its official first-quarter earnings report on Wednesday, May 3.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends QuidelOrtho. The Motley Fool has a disclosure policy.
