SAN FRANCISCO (Thomson Financial) - Shares of Quidel Corp. fell Thursday
after the company reported first-quarter revenue that missed Wall Street
estimates and some analysts expressed skepticism about slight top-line softness.
Late Wednesday, the San Diego-based maker of point-of-care diagnostics for
detection of human medical conditions and illnesses posted first-quarter net
income of $8.55 million, or 26 cents a share, ahead of the 23-cent mean estimate
of analysts polled by Thomson Reuters.
During the same period a year earlier, net income was $4.82 million, or 14
cents a share.
Revenue for the three months ended March 31 rose to $40.9 million from $33.9
million last year. Analysts were looking for revenue of $41.6 million.
Noting that revenue was slightly below consensus, Collins Stewart maintained
a hold rating on the stock. The firm said that strength of Quidel's flu test
sales were offset by weaker-than-expected sales of pregnancy, strep and PET
diagnostic tests.
Pacific Growth Equities also maintained a buy rating on the stock, noting
the strength of the company's flu test sales versus softness in its other
products.
The firm lowered its second-quarter revenue estimate for Quidel to $18.2
million from $21.4 million, largely based on a decreased estimate for strep and
pregnancy test revenue.
"Despite the seasonality inherent in the company's revenue mix, we believe
the company's influenza franchise has continued room for growth driven by
increased utilization by physicians and penetration into other settings such as
retail clinics," wrote Pacific Growth's Un K. Kwon-Casado in a note to clients.
"While we have observed the stock tends to sell off going into its Q2
earnings release, we recommend investors take opportunities to buy on any
weakness given our long-term outlook and 12-month fair value estimate of $20 per
share, based on a [discounted cash flow] analysis," Kwon-Casado wrote.
Quidel shares were down $1.23, or about 7.1%, at $15.99.
Katherine Hunt
kh/pc
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