NEW YORK – QuidelOrtho reported Wednesday that its fourth quarter 2024 revenues declined approximately 5 percent year over year due to lower COVID and flu revenues.
For the three months ended Dec. 31, 2024, QuidelOrtho reported revenues of $707.8 million compared to $742.6 million in Q4 2023. Total fourth quarter revenues were slightly above the firm's preliminary reported results range of revenues between $702 million to $707 million and beat the consensus Wall Street estimate of $697 million.
"We finished the year with solid top-line results that were in line with our 2024 financial guidance, and I'm encouraged by the progress that we're making in improving our cost structure and focusing the business to elevate profitable growth," QuidelOrtho CEO Brian Blaser said on a call with investors, adding that more than 90 percent of the firm's Q4 sales were recurring, driven by reagents, consumables, and services.
Blaser was appointed CEO about nine months ago, spearheading cuts and a restructuring to support long-term profitability. "I have been impressed with our team and grateful for their support as we made difficult but necessary changes this past year," Blaser said on the call. While the firm has continued to drive cost-reduction initiatives, it will now also be prioritizing R&D productivity and the strength of its platform content, he said, as well as the development of new systems to strengthen its global market position.
The San Diego-based firm's respiratory revenues in the quarter fell 18 percent to $143.2 million from $174.6 million a year ago. Non-respiratory revenues declined approximately 1 percent to $564.6 million from $568.0 million.
Lab revenues in Q4 increased 2 percent to $359.7 million from $351.9 million, while immunohematology revenues rose 3 percent to $136.7 million from $132.3 million.
Fourth quarter donor screening revenues dropped 40 percent year over year to $19.8 million from $33.1 million. QuidelOrtho previously announced plans to phase out its US donor screening business.
The firm's point-of-care-revenues in the fourth quarter declined 15 percent to $184.8 million from $216.8 million a year ago.
"Despite challenging year-over-year comparisons from the decline of COVID testing, our point of care business continues its leadership position with Sofia's large global installed base and our flu/COVID combo test," Blaser said on the call.
Molecular diagnostics revenues, meanwhile, dropped 20 percent to $6.8 million from $8.5 million a year ago. The firm began clinical trials for its Savanna molecular diagnostic system last month, Blaser noted, coinciding with the ramp-up of the respiratory season.
Revenues from Europe, the Middle East, and Africa (EMEA) dipped 6 percent year over year to $85.9 million from $90.9 million. Revenues from North America, meanwhile, fell 11 percent to $399.6 million from $450.3 million, and revenues from China in the quarter were up 13 percent to $86.9 million from $77.1 million, while the firm's "other" regions revenues rose 9 percent to $135.4 million from $124.3 million.
QuidelOrtho's net loss for the quarter was $153.4 million, or $2.28 per share, compared to a net income of $7.0 million, or $.10 per share, in the year-ago period. Adjusted EPS was $.63, beating the Wall Street estimate of $.58.
For full-year 2024, QuidelOrtho reported its total revenues declined 7 percent to $2.78 billion from $3.00 billion in the year-ago period due to lower COVID sales.
Respiratory revenues in 2024 dropped 30 percent to $503.9 million in 2024 from $714.6 million in 2023, while non-respiratory revenues for the year were essentially flat at $2.28 billion.
Lab revenues in 2024 were flat year over year at $1.43 billion, while immunohematology revenues increased 2 percent to $522.6 million from $512.4 million.
Full-year donor screening revenues declined 15 percent to $115.5 million from $136.1 million in 2023, and point-of-care revenues dropped 22 percent year over year to $694.1 million to $892.2 million.
Molecular diagnostics revenues in 2024 were down 24 percent to $24.0 million from $31.7 million.
Regionally, QuidelOrtho's revenues in 2024 from EMEA increased 3 percent to $335.8 billion from $327.3 billion a year ago. Revenues from North America, meanwhile, declined 14 percent to $1.62 billion from $1.88 billion. China revenues were up 5 percent to $325.0 million from $310.1 million, and revenues in other regions were up 4 percent to $502.3 million from $483.3 million.
QuidelOrtho's net loss for 2024 was $2.03 billion, or $30.16 per share, compared to a net loss of $10.1 million, or $.15 per share, in 2023. Adjusted EPS was $1.85, beating the Wall Street estimate of $1.80.
QuidelOrtho ended the year with $98.3 million in cash and cash equivalents.
On the call, QuidelOrtho CFO Joe Busky said that North America experienced a late start to the current respiratory season, but influenza-like illness cases are now spiking to levels previously seen in 2018, which was a robust flu season. He noted that the firm expects its full-year 2025 business unit growth profile to be in line with commentary shared in January at the JP Morgan Healthcare Conference, factoring in strong flu trends and not assuming any sales of Savanna products in the US during the year.
For 2025, the company guided to total revenues of $2.60 billion to $2.81 billion and adjusted diluted EPS of $2.07 to $2.57.
Shares of QuidelOrtho were up 4 percent to $41.54 in Thursday afternoon trading on the Nasdaq.