What Are Analysts Saying About Quidel Corporation’s (NASDAQ:QDEL) Growth?
Looking at Quidel Corporation’s (NASDAQ:QDEL) earnings update on 31 December 2018, analysts seem cautiously optimistic, as a 21% increase in profits is expected in the upcoming year, though this is relatively lower than the previous 5-year average earnings growth of 59%. Currently with trailing-twelve-month earnings of US$74m, we can expect this to reach US$90m by 2020. Below is a brief commentary around Quidel’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Quidel
How is Quidel going to perform in the near future?
Longer term expectations from the 6 analysts covering QDEL’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for QDEL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, QDEL’s earnings should reach US$125m, from current levels of US$74m, resulting in an annual growth rate of 16%. This leads to an EPS of $2.85 in the final year of projections relative to the current EPS of $1.95. In 2022, QDEL’s profit margin will have expanded from 14% to 21%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Quidel, I’ve compiled three key aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Quidel worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Quidel is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Quidel? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
