Finance
Why GeneDX Stock Is Plummeting Today
GeneDX (NASDAQ: WGS) stock is getting crushed in Tuesday’s trading. The biotech company’s share price was down 48.7% as of 11 a.m. ET.
GeneDX published its first-quarter results after yesterday’s market close, posting sales and earnings for the period that came in far worse than Wall Street had anticipated. Intensifying bearish pressures for the stock, the company also cut its full-year guidance.
Image source: Getty Images.
GeneDX’s latest quarterly report arrived with a lot of bad news for investors.
GeneDX (WGS 49.34%) stock is getting crushed in Tuesday’s trading. The biotech company’s share price was down 48.7% as of 11 a.m. ET.
GeneDX published its first-quarter results after yesterday’s market close, posting sales and earnings for the period that came in far worse than Wall Street had anticipated. Intensifying bearish pressures for the stock, the company also cut its full-year guidance.
Image source: Getty Images.
GeneDX’s Q1 report arrived with some big warning signs
GeneDX recorded a non-GAAP (adjusted) loss of $0.28 per share on sales of roughly $102.3 million in the first quarter. While sales were still up roughly 17% year over year, they came in roughly $10.2 million short of the average Wall Street analyst estimate.
Even worse, the business’s adjusted loss per share for the period came in $0.26 higher than the level called for by the average analyst forecast. While exome and genome volume increased 34% year over year, the company faced a $5.5 million sales shortfall stemming from lower-than-expected average reimbursement rates in the category and a $6.5 million shortfall in the company’s non-core business lines.
GeneDx
Today’s Change
(-49.34%) $-33.52
Current Price
$34.41
What’s next for GeneDX?
In conjunction with its softer-than-expected Q1 performance, GeneDX cut its full-year guidance. Management is now targeting sales between $475 million and $490 million for the year — down from its previous target for sales between $540 million and $555 million. Meanwhile, the average analyst estimate had targeted sales of $550 million for the period.
GeneDX’s pricing power is looking significantly weaker coming out of its Q1 report. In addition to the softer sales outlook for the year, the company is likely looking at a much lower adjusted profit — so it’s not surprising investors are fleeing the stock today.