Quidel Corp. announced on Thursday that it expects 3Q revenues in the range of $475 million to $477 million, surpassing analysts’ expectation of $394.3 million. The diagnostic testing provider, will report its third quarter results in late-October. Shares closed 2.8% higher on Thursday.
Quidel’s (QDEL) CEO Douglas Bryant said “Quidel has risen to the challenge of the COVID-19 pandemic, producing and shipping millions of tests to those with the greatest need by providing affordable rapid testing to tens of thousands of communities throughout the United States. Moving forward, we expect even greater success in augmenting our supply chains and production for our COVID-19 diagnostic products, resulting in $800 million or more in revenue in our final quarter of 2020.”
On July 30, Quidel reported upbeat 2Q revenues of $201.8 million versus the Street consensus of $189.8 million. Its 2Q earnings of $1.86 per share came ahead of analysts’ expectations of $1.09. (See QDEL stock analysis on TipRanks)
On Aug. 28, Piper Sandler analyst Steven Mah maintained a Buy rating on the stock with a price target of $360 (59.6% upside potential). The analyst said that the company is positive about the competition from Abbott’s Covid-19 test approval, which would communicate the need for antigen testing to the public health community. He also pointed out that Quidel will offer its QuickVue product at $10-$12, and the launch of a flu and Covid-19 combo assay would position the company well for the upcoming flu season.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 3 Buys. The average price target of $361.50 implies upside potential of about 60.3% to current levels. Shares have already rallied over 200% year-to-date.
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