Fulgent Genetics' Shares Reach New 52-Week High After Posting 105% Increase in Q2 Revenue
Source: Streetwise Reports
August 6, 2020 (Investorideas.com Newswire) Shares of Fulgent Genetics traded 22% higher after the company reported it posted a record $17.1 million in Q2/20 revenue and completed a record 180,513 billable tests in the quarter.
The company reported that revenue increased by 105% to a record $17.3 million in Q2/20, compared to $8.4 million in Q2/19. The firm advised that in Q2/20 GAAP income was $3.3 million, or $0.14 per share, and non-GAAP income was $4.0 million, or $0.17 per share. Fulgent Genetics additionally indicated that adjusted EBITDA was $4.3 million in Q2/20, compared to $1.5 million in Q2/19.
The firm highlighted that in Q2/20 it delivered a record number 180,513 billable tests, which grew by 1003% YoY. The company added that its gross margin improved approximately 8% versus Q1/20 and that the cost per test improved approximately 81% YoY.
The company's Chairman and CEO Ming Hsieh commented, "The global COVID-19 pandemic has tested who we are as a company, and now more than ever we have demonstrated that Fulgent is a technology company with a proprietary platform built for massive scale. Our technology is the cornerstone for all facets of our business, including cloud computing, pipeline services, record management, web portal services, clinical workflow, sequencing as a service and automated lab services. Our second quarter results illustrate how we quickly applied our technology to the needs of today, organically developing and launching multiple tests to detect COVID-19 with Emergency Use Authorization from the FDA, including an at-home test offered through Picture Genetics, our patient-initiated product. These offerings have attracted major new customer accounts, resulting in an inflection point in our business and outlook."
Fulgent Genetics' CFO Paul Kim stated, "Our second quarter volume increased over 1200% sequentially, and we see the opportunity for continued momentum through the balance of the year. Our traditional genetic testing orders rebounded in June and July and are on track for growth in the second half of 2020. By aggressively applying our technology platform, we democratized and made affordable the needs of COVID-19 testing to the public, resulting in overall average selling price of less than $100 per test, while shortening our average turnaround time to less than 24 hours from receipt of sample. We expanded our customer base for the long term by winning large, strategic governmental and commercial accounts. We will provide a formal update on our guidance for the remainder of the year during our investment community conference call to shortly follow the issuance of this press release."
Fulgent Genetics is a technology company offering comprehensive genetic testing in order to provide physicians with clinically actionable diagnostic information they can use to improve the quality of patient care. The company explained that "it combines next generation sequencing (NGS) with its technology platform allowing it to perform full-gene sequencing with deletion/duplication analysis in an array of panels that can be tailored to meet specific customer needs."
The firm pointed out that since March 2020, it also launched several tests for the detection of SARS-CoV-2 including NGS and reverse transcription polymerase chain reaction (RT-PCR)-based tests. The company indicated that it received Emergency Use Authorization from the FDA for the RT-PCR-based tests for both the detection of SARS-CoV-2 using upper respiratory specimens and for at-home testing through Picture Genetics.
The company noted that its Picture Genetics platform offers consumers affordable direct access to its advanced genetic testing and analytics capabilities from comfort of their own home. The platform facilitates at-home genetic screening with oversight from independent physicians and allows for multiple tests in one easy process that provides medically actionable, clinical-level results with supervised professional medical follow-up.
Fulgent Genetics started the day with a market capitalization of around $644.2 million with approximately 21.7 million shares outstanding and a short interest of about 4.7%. FLGT shares opened nearly 32% higher today at $39.18 (+$9.49, +31.96%) over yesterday's $29.69 closing price and reached a new 52-week high price this morning of $43.64. The stock has traded today between $34.36 and $43.64 per share and is currently trading at $36.26 (+$6.57, +22.13%).
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com