Quidel Corporation QDEL reported fourth-quarter 2018 adjusted earnings per share (EPS) of 80 cents, which outpaced the Zacks Consensus Estimate by 29%. Earnings climbed 42.9% on a year-over-year basis as well.
The medical product company posted fourth-quarter revenues of $132.6 million which surpassed the Zacks Consensus Estimate by 0.3%. On a year-over-year basis, revenues rose 15.4%. Notably, the company’s Triage revenues saw an uptick in United States and China.
Post the release of a solid earnings performance, shares of the Zacks Rank #2 (Buy) company jumped 5.2% to $64.30 at close. Over the past year, the stock has rallied 42.5% compared with the industry’s 4.5% and the S&P 500 index’s 0.9% rally.
2018 at a Glance
Quidel’s 2018 adjusted EPS came in at $3.04, which skyrocketed from the year-ago $1.07.
Revenues totaled $522.3 million, up a significant 88% from 2017.
Quidel Corporation Price, Consensus and EPS Surprise
Quidel Corporation Price, Consensus and EPS Surprise | Quidel Corporation Quote
Quidel reports through four segments — Rapid Immunoassay, Cardiac Immunoassay, Specialized Diagnostic Solutions and Molecular Diagnostic Solutions.
In the quarter under review, Rapid Immunoassay revenues totaled $50.4 million, up 2.6% year over year.
Cardiac Immunoassay sales improved 33.8% year over year to $62.9 million in the quarter, mostly due to incremental revenues in China.
Specialized Diagnostic Solutions raked in revenues worth $13.4 million, down 6.1% from the year-ago quarter.
Revenues at Molecular Diagnostic Solutions totaled $5.8 million, up 30% from the prior-year quarter.
Gross profit in the fourth quarter was $82.1 million up, 38.9% year over year. Gross margin was 61.9%, up from 51.5% a year ago.
Adjusted operating income came in at $30.8 million, up from the year-ago quarter’s $13.4 million. Adjusted operating margin was 23.2%, significantly up from the year-ago quarter’s 11.6%.
Quidel expects molecular revenues to grow a minimum of 20% in 2019, driven by incremental Solana instrument placements and increased assay utilization. On the whole, management at Quidel expects 2019 to be highly productive.
Quidel wrapped up the fourth quarter on a solid note. Significant upside in the company’s top line buoys optimism. Quidel continues to gain from its Cardiac Immunoassay segment which put up a solid show in the fourth quarter. Additionally, flagship Triage saw strong sales in the United States and China. Additionally, the company received CE Mark for its Sofia Quantitative Vitamin D Assay, Sofia 2 Lyme+ Fluorescent Immunoassay and TriageTrue High Sensitivity Troponin I Test.
On the flip side, Quidel’s Specialized Diagnostic Solutions unit saw some softness in the quarter. Also, revenues from Triage saw a downside in geographies like Europe, Middle East and Africa.
Earnings of Other MedTech Majors at a Glance
Other top-ranked MedTech stocks that posted solid quarterly results are Varian Medical Systems VAR, AngioDynamics ANGO and CONMED Corporation CNMD.
Varian reported fiscal first-quarter adjusted EPS of $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2.
AngioDynamics’ fiscal second-quarter adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which surpassed the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
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