Shares of Fulgent Genetics surged in premarket trade following the company’s announcement of stronger-than-expected second-quarter results and an upward revision to its full-year guidance. As of now, the stock has risen by 15% to $46, reflecting a 33% increase year-to-date.
Positive Outlook for Fulgent
Fulgent, a leading clinical diagnostic company, now anticipates a loss of $2.15 per share on core revenue of $260 million for the year. This projection excludes revenue from Covid-19 testing products. Compared to the previous guidance of a $2.50 per-share loss on core revenue of $250 million, this forecast suggests a more optimistic outlook.
Furthermore, the company has revised its adjusted loss estimate to 95 cents per share, down from the previously estimated $1.25 per share. This adjusted loss figure factors in the exclusion of one-time items.
Q2 Performance and Key Numbers
In the second quarter, Fulgent reported a net loss of $11.2 million, equivalent to 38 cents per share. This represents a significant shift from the profit of $11.5 million, or 37 cents per share, recorded during the same quarter last year. However, when adjusting for one-time items, the company’s loss narrows down to 8 cents per share.
Although overall revenue declined to $67.9 million from $125.3 million compared to last year, core revenue experienced a remarkable increase of 48%, reaching $67 million. This surpassed both analyst estimates of $62.5 million and Fulgent’s own guidance of $62 million.
Conclusion
Fulgent Genetics continues to exhibit strength in its financial performance, outperforming expectations for the second quarter and raising its full-year guidance. The company’s strategic adjustments and robust growth in core revenue contribute to its positive outlook for the remainder of the year.
