Quidel Corporation (QDEL) stock surged 7.66% in pre-market trading on Thursday, following the release of its Q4 2024 earnings report and 2025 guidance.

While the company reported a 4% year-over-year decline in Q4 2024 revenue to $708 million, primarily due to lower COVID-19 and flu testing demand, Quidel provided an optimistic outlook for 2025. The company expects revenue to range between $2.6 billion and $2.81 billion, with adjusted EBITDA guidance of $575 million to $615 million, representing a 22% margin.

Quidel's strong pre-market performance can be attributed to its ongoing cost reduction initiatives and the potential for margin improvement. The company is implementing procurement savings and other cost-cutting measures, which are expected to drive adjusted EBITDA margin expansion by 250 basis points in 2025. Additionally, Quidel highlighted positive developments such as the initiation of clinical trials for its Savanna Respiratory Panel and stable growth in its core Labs business.