We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Veracyte (VCYT) Q2 Earnings Beat Estimates, '24 Sales View Up
Read MoreHide Full Article
Veracyte (VCYT - Free Report) delivered second-quarter 2024 adjusted diluted earnings of 30 cents per share, up a stupendous 150% from the year-ago period’s level. The reported figure beat the Zacks Consensus Estimate of a loss of 3 cents per share.
Revenues
Revenues increased 26.7% year over year to $114.4 million, which outpaced the Zacks Consensus Estimate by 14%.
Segmental Details
Testing revenues totaled $107 million in the reported quarter, up 31% year over year. This rise was mainly due to increased Decipher and Affirma volumes.
Product revenues fell 3% year over year to $3.9 million.
Biopharmaceutical and other revenues of $3.6 million reflected a 22% decrease from the prior-year quarter’s figure. This was mainly due to the overall spending constraints across the industry.
Margins
The total cost of revenues (product, testing, biopharmaceutical and other) was $33.6 million, up 13.2% year over year.
The gross profit rose 33.3% to $80.8 million. The gross margin expanded 350 basis points (bps) to 70.6%.
Selling and marketing expenses fell 5.9% to $24.2 million, while general and administrative expenses increased 26.7% to $31.7 million. R&D expenses totaled $16.5 million, up 31.3% year over year. The company delivered an operating profit of $8.4 million in the second quarter against an operating loss of $2.7 million during the prior-year period.
Cash, Capital Structure and Solvency
Veracyte exited the second quarter with cash and cash equivalents of $235.9 million compared with $209.2 million at the end of the first quarter of 2024.
The cumulative net cash outflow from operating activities at the end of the reported quarter was $20.6 million compared with $14.5 million at the end of the second quarter of 2023.
Guidance
Vertacyte provided a revised financial outlook for 2024.
Revenues for 2024 are now expected to be in the band of $432-$438 million (up from the previous guidance of $402-$410 million), representing year-over-year growth of 20-21% and testing revenue growth of approximately 25%. The top-line estimate is currently pegged at $406.1 million.
Veracyte reported better-than-expected second-quarter results, with both its earnings and revenues surpassing their respective estimates. The company had a strong start to 2024, driven by robust growth from its market-leading Decipher Prostate and Afirma tests. With Decipher Prostrate, Veracyte delivered a new quarterly volume record, with growth coming from both new and existing providers.
Meanwhile, the decrease in product revenues was mainly due to the lower demand for Prosigna, which was affected by the supplier issues seen previously. The Biopharma business continued to be adversely impacted by industry-wide spending constraints.
The raised 2024 revenue guidance instills optimism among investors.
Zacks Rank and Key Picks
Veracyte currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% for 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Veracyte (VCYT) Q2 Earnings Beat Estimates, '24 Sales View Up
Veracyte (VCYT - Free Report) delivered second-quarter 2024 adjusted diluted earnings of 30 cents per share, up a stupendous 150% from the year-ago period’s level. The reported figure beat the Zacks Consensus Estimate of a loss of 3 cents per share.
Revenues
Revenues increased 26.7% year over year to $114.4 million, which outpaced the Zacks Consensus Estimate by 14%.
Segmental Details
Testing revenues totaled $107 million in the reported quarter, up 31% year over year. This rise was mainly due to increased Decipher and Affirma volumes.
Product revenues fell 3% year over year to $3.9 million.
Biopharmaceutical and other revenues of $3.6 million reflected a 22% decrease from the prior-year quarter’s figure. This was mainly due to the overall spending constraints across the industry.
Margins
The total cost of revenues (product, testing, biopharmaceutical and other) was $33.6 million, up 13.2% year over year.
The gross profit rose 33.3% to $80.8 million. The gross margin expanded 350 basis points (bps) to 70.6%.
Selling and marketing expenses fell 5.9% to $24.2 million, while general and administrative expenses increased 26.7% to $31.7 million. R&D expenses totaled $16.5 million, up 31.3% year over year. The company delivered an operating profit of $8.4 million in the second quarter against an operating loss of $2.7 million during the prior-year period.
Cash, Capital Structure and Solvency
Veracyte exited the second quarter with cash and cash equivalents of $235.9 million compared with $209.2 million at the end of the first quarter of 2024.
The cumulative net cash outflow from operating activities at the end of the reported quarter was $20.6 million compared with $14.5 million at the end of the second quarter of 2023.
Guidance
Vertacyte provided a revised financial outlook for 2024.
Revenues for 2024 are now expected to be in the band of $432-$438 million (up from the previous guidance of $402-$410 million), representing year-over-year growth of 20-21% and testing revenue growth of approximately 25%. The top-line estimate is currently pegged at $406.1 million.
Veracyte, Inc. Price, Consensus and EPS Surprise
Veracyte, Inc. price-consensus-eps-surprise-chart | Veracyte, Inc. Quote
Our Take
Veracyte reported better-than-expected second-quarter results, with both its earnings and revenues surpassing their respective estimates. The company had a strong start to 2024, driven by robust growth from its market-leading Decipher Prostate and Afirma tests. With Decipher Prostrate, Veracyte delivered a new quarterly volume record, with growth coming from both new and existing providers.
Meanwhile, the decrease in product revenues was mainly due to the lower demand for Prosigna, which was affected by the supplier issues seen previously. The Biopharma business continued to be adversely impacted by industry-wide spending constraints.
The raised 2024 revenue guidance instills optimism among investors.
Zacks Rank and Key Picks
Veracyte currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has a long-term earnings growth rate of 16.1% for 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry’s 4.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.