Quidel Corporation (QDEL) shares are soaring 15.12% in early trading on Wednesday, building on a pre-market surge following the company's impressive second-quarter 2025 earnings report. The diagnostic healthcare product manufacturer's results, released after market close on Tuesday, significantly exceeded analyst expectations, demonstrating resilience in challenging market conditions.

The standout figure from Quidel's Q2 report was its adjusted earnings per share (EPS) of $0.12, dramatically outperforming the analyst consensus estimate of $0.00. This represents a remarkable turnaround from the $0.07 per share loss reported in the same period last year. Revenue for the quarter came in at $614 million, narrowly beating analyst estimates of $611.1 million, despite a 3.6% decrease from the previous year. The company's cost-cutting measures proved highly effective, delivering $100 million in annualized savings and contributing to an improved adjusted EBITDA of $107 million, up 18.9% year-over-year.

The market's enthusiastic response to Quidel's earnings comes despite recent target price cuts from several analysts. Jefferies, Raymond James, and Citigroup all lowered their price targets for QDEL in the wake of the earnings release. However, investors appear to be focusing on Quidel's ability to exceed expectations and improve profitability, overlooking both the slight year-over-year revenue decline and the analyst downgrades. The company's reiteration of its full-year 2025 financial guidance has also likely contributed to the positive sentiment, suggesting confidence in its future performance despite ongoing challenges in the diagnostic healthcare sector.