Shares of Guardant Well being (NASDAQ:GH) jumped 12% on Friday following the corporate’s announcement of its third-quarter outcomes after the market closed on Thursday. Guardant Well being reported that its income skyrocketed 181% yr over yr in Q3 to $60.eight million. The corporate posted a internet lack of $12.eight million, or $zero.14 per share, a big enchancment from the prior-year interval and significantly better than Wall Avenue estimates.
Along with its stellar Q3 outcomes, Guardant boosted its full-year 2019 steering. The corporate now initiatives income between $202 million and $207 million, up from its earlier steering of full-year income between $180 million and $190 million. This midpoint of Guardant Well being’s revised vary displays year-over-year development of practically 126%.
Guardant Well being’s Q3 replace exhibits that its liquid biopsy merchandise proceed to take pleasure in super momentum. The corporate mentioned that 13,259 assessments have been carried out by scientific prospects and 5,280 assessments have been carried out by biopharmaceutical prospects throughout the third quarter. These numbers have been up 89% and 111%, respectively.
Whereas the take a look at utilization numbers have been up, Guardant’s income soared much more for a easy purpose: It was in a position to cost extra per take a look at. A rising marketplace for the corporate’s liquid biopsy merchandise with the power to command greater costs is strictly what buyers needed to listen to.
There may very well be much more excellent news on the way in which. The corporate awaits Meals and Drug Administration approval for its Guardant360 liquid biopsy utilized in scientific testing of most cancers sufferers. FDA approval might increase gross sales for the product much more.
Guardant Well being additionally not too long ago kicked off a giant registrational examine of its LUNAR-2 blood take a look at to display screen adults for colorectal most cancers. The corporate thinks that the potential market opportunity for its LUNAR liquid biopsy tests is considerably bigger than the marketplace for its present merchandise which might be driving its income greater and better.
With seemingly nothing however tailwinds, Guardant seems to be probably the most engaging growth stocks in the marketplace proper now. There may very well be some bumps sooner or later, however for now, it is all honest skies for this high-flying healthcare inventory.