Quidel Corporation (QDEL) shares surged 5.96% in after-hours trading on Wednesday following the release of its third-quarter results that surpassed analyst expectations. The in vitro diagnostics company reported robust financial performance and provided an optimistic outlook for the full year, despite facing challenges in its respiratory and donor screening segments.

For the third quarter, Quidel posted revenue of $699.9 million, beating the consensus estimate of $664.96 million. The company's adjusted earnings per share (EPS) came in at $0.80, significantly outperforming analysts' expectations of $0.46. While total revenue decreased by 4% compared to the previous year, primarily due to lower COVID-19 and donor screening revenue, the company's non-respiratory revenue grew by 5.0% as reported and 4.0% in constant currency.

Adding to investor optimism, Quidel provided a strong full-year outlook for 2025. The company forecasts revenue between $2.68 billion and $2.74 billion, with adjusted EPS projected to range from $2.00 to $2.15. This guidance suggests confidence in the company's ability to navigate the evolving diagnostics market. Additionally, Quidel reported successful debt refinancing during the quarter, which has improved its financial flexibility through better terms and reduced obligations. Despite a $701 million non-cash goodwill impairment charge impacting GAAP results, the company's adjusted figures and future projections have resonated positively with investors, driving the after-hours stock rally.