Shares of Quidel Corporation (NASDAQ:QDEL) rose sharply on Monday and closed the day's trading session up by 6.1% despite the company not reporting any news. Meanwhile, the broader market had a rough day today, largely due to a resurgence of COVID-19 cases. That may be why Quidel's stock jumped today. Investors are hopeful that the company's coronavirus diagnostic testing business will keep booming as the pandemic drags on.
Rapid and accurate diagnostic test kits are essential in our ability to manage the coronavirus outbreak. Quidel is among the companies that have been able to make a dent in this market. The healthcare company developed several options, including the Sofia 2 Flu + SARS Antigen FIA, which can detect and differentiate between the SARS-CoV-2 virus that causes COVID-19 and two different types of the influenza virus.
Earlier this month, Quidel gave investors a preview of its third-quarter earnings report. The company expects revenue between $475 million and $477 million for the quarter, which is well above the $450.9 million analysts predicted on average.
It would also represent a whopping 276.3% year-over-year increase at the midpoint. The company's CEO, Douglas Bryant, attributed Quidel's performance to its coronavirus-related work:
The entire team at Quidel has truly risen to the challenge of the COVID-19 pandemic, producing and shipping millions of tests to those with the greatest need, and further democratizing testing by providing affordable rapid testing to tens of thousands of communities throughout the United States.
Quidel Corporation will announce its third-quarter financial results on Thursday, Oct 29 after the market closes. Given the company's preliminary results -- and the rising number of new COVID-19 cases -- expect Quidel's stock to get a boost after it releases its earnings report.