By Kit Norton

Shares of QuidelOrtho tumbled on Thursday after the diagnostic testing company reported preliminary first-quarter revenue that came in well below Wall Street expectations.

QuidelOrtho currently expects preliminary unaudited first-quarter revenue between $615 million and $620 million, about 9% below Wall Street's estimate of $671.8 million, according to FactSet. The preliminary first-quarter sales numbers, reported late Wednesday, also represent a 11% decline from a year ago. Official earnings are expected to be reported on May 5.

The company blamed its preliminary numbers on a weaker respiratory illness season, citing a 30% drop in U.S. influenza-like illness visits compared with the first quarter of 2025.

The Centers for Disease Control and Prevention currently classifies the U.S. influenza season, which usually runs from October to May, as "moderate severity."

QuidelOrtho shares tumbled 30% to $12.25 on Thursday, on pace for their lowest closing price since April 25, 2011, according to Dow Jones Market Data. Shares are down 26% in April and have declined 58% so far this year.

QuidelOrtho added that slower China distributor sales, possibly because of the proposed China National Health Security Administration's reimbursement rate reductions, are also weighing on first-quarter sales. Some Europe, the Middle East, and Africa orders have also been delayed by the U.S. and Israel-led war with Iran, according to the company.

Based on these factors, the company continues to see free cash flow to be negative $65 million to $70 million in the first half of 2026. However, QuidelOrtho sees free cash flow turning positive for the full year.

"Despite macroeconomic challenges and a softer first quarter respiratory season, QuidelOrtho is taking decisive cost actions to drive full-year 2026 performance," CEO Brian J. Blaser said in the press release.

QuidelOrtho said it still believes the low end of its previous full-year 2026 guidance remains achievable. In February, the company forecast full-year earnings between $2.00 and $2.42 a share on sales of $2.7 billion to $2.9 billion.

Write to Kit Norton at kit.norton@barrons.com

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April 16, 2026 11:42 ET (15:42 GMT)

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