QuidelOrtho (QDEL) pops 6% after board fires CEO

February 21, 2024 4:53 PM EST

QuidelOrtho's (NASDAQ: QDEL) shares jumped more than 6% on Wednesday after the company’s board of directors announced the dismissal of its CEO, Douglas Bryant, following a disappointing performance in its recent earnings report.

Bryant, who has led the company as president and CEO since 2009, will be leaving his role immediately and will also step down from the board of directors.

Further, QuidelOrtho has decided to delay an investor day that had previously been scheduled, as stated in a company press release.

The decision to terminate Bryant's employment comes in the wake of QuidelOrtho’s Q4 financial results, which fell short of expectations on top and bottom lines.

Commenting on the move, William Blair analysts led by Andrew F. Brackmann said the move will likely be seen by investors “as the first step in driving sustained shareholder value.”

The diagnostic healthcare product maker will conduct a thorough search for a new Chief Executive, assessing both internal and external candidates.

“We view this as a difficult near-term but potentially rewarding long-term role and look for the board to identify individuals with strong operating/turnaround skills and experience in synergy capture,” Brackmann and his team said in a note.

“Ultimately it will depend on who replaces Bryant, but the pieces seem to be in place for the right leader to steer the ship and refocus on driving sustainable revenue and profitability,” they added.

The broker reiterated a Market Perform rating on QDEL.

By Vahid Karaahmetovic

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