As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - imaging, diagnostics industry, including QuidelOrtho (NASDAQ: QDEL) and its peers.
The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.
The 4 medical devices & supplies - imaging, diagnostics stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.
QuidelOrtho (NASDAQ: QDEL)
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
QuidelOrtho reported revenues of $707.8 million, down 4.7% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.
“We are pleased with our 2024 business performance and ended the year with positive momentum leading into 2025,” said Brian J. Blaser, President and Chief Executive Officer, QuidelOrtho.
QuidelOrtho delivered the slowest revenue growth of the whole group. The stock is down 14.9% since reporting and currently trades at $33.99.
Read our full report on QuidelOrtho here, it’s free.
Best Q4: GE HealthCare (NASDAQ: GEHC)
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
GE HealthCare reported revenues of $5.32 billion, up 2.2% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with a solid beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.3% since reporting. It currently trades at $71.
Is now the time to buy GE HealthCare? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Hologic (NASDAQ: HOLX)
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.
Hologic reported revenues of $1.02 billion, flat year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for the full year below analysts’ expectations.
Hologic delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 14.1% since the results and currently trades at $62.49.
Read our full analysis of Hologic’s results here.
Lantheus (NASDAQ: LNTH)
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Lantheus reported revenues of $391.1 million, up 10.5% year on year. This number surpassed analysts’ expectations by 3.8%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ full-year EPS guidance estimates but full-year revenue guidance missing analysts’ expectations.
Lantheus delivered the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is up 20.9% since reporting and currently trades at $96.81.
Read our full, actionable report on Lantheus here, it’s free.
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