BRISBANE, Calif. - CareDx, Inc. (NASDAQ:CDNA), a company specializing in precision medicine for transplant patients with a market capitalization of $1.27 billion, has announced preliminary financial results for the fourth quarter and full year ended December 31, 2024. The company's stock has shown remarkable strength, delivering a 115% return over the past year. The unaudited data suggests a significant increase in revenue, with fourth-quarter earnings expected to be between $85 million and $86 million, marking an approximate 30% year-over-year growth. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value assessment.
The company's testing services are projected to generate between $62.5 million and $63.5 million, which is about a 35% increase from the previous year, with testing volume rising by 14% to roughly 45,500. Digital Solutions and Products are each expected to contribute $11.4 million to the total revenue. The company maintains strong financial health with a current ratio of 4.1, indicating robust liquidity to meet short-term obligations.
Despite the revenue growth, CareDx anticipates a GAAP loss of approximately $32 million to $34 million for the fourth quarter. However, adjusted EBITDA is expected to show a gain of between $8 million and $9 million.
For the full year 2024, the company forecasts revenue to be in the range of $332 million to $333 million, with an anticipated GAAP loss between $58 million and $60 million. Nonetheless, the adjusted EBITDA is expected to be positive, with a gain of about $25 million to $26 million.
CareDx's cash position appears strong, with cash, cash equivalents, and marketable securities anticipated to be around $261 million as of December 31, 2024, showing an increase of approximately $26 million over the year.
Looking ahead, the company expects to continue its growth trajectory with projected 2025 revenues of $370 million. Five analysts have recently revised their earnings estimates upward, with price targets ranging from $28 to $40 per share. CareDx President and CEO John W. Hanna expressed confidence in the company's performance and its ability to meet the target of $500 million in revenue and 20% adjusted EBITDA by 2027. For deeper insights into CareDx's growth potential and detailed analyst coverage, visit InvestingPro, where you'll find comprehensive research reports and additional ProTips.
The financial information provided is preliminary and subject to change pending the completion of standard annual audit procedures. The final report on the fourth quarter and full year 2024 financial results, along with the 2025 financial guidance, will be presented during CareDx's earnings call in February 2025.
This summary is based on a press release statement and should be considered in the context of potential adjustments following customary financial audits and market uncertainties.
In other recent news, CareDx, Inc. reported a notable 23% year-over-year increase in Q3 2024 revenue, reaching $82.9 million, and a positive adjusted EBITDA of $6.9 million, surpassing expectations. The company also revised its full-year 2024 revenue guidance upward, now expecting a 17% growth at the midpoint. In a strategic move into hematology oncology, CareDx announced a partnership with TC BioPharm to utilize its AlloCell solution in the ACHIEVE clinical trial, a phase II study assessing the efficacy of TCB008, a gamma-delta T-cell therapy, for patients with Acute Myeloid Leukemia or Myelodysplastic Syndrome.
In governance news, CareDx has updated its compensation policy for non-employee directors, modifying stock award vesting schedules and removing additional quarterly retainers for the Board Chairperson. This restructuring aligns the interests of its board members with those of the company and its shareholders, reflecting a commitment to streamlined and updated governance practices.
Additionally, investigations by the DOJ and SEC concluded with no findings of wrongdoing, and patent infringement claims against CareDx's AlloSure testing method were withdrawn by a competitor. Looking ahead, CareDx plans to enhance its commercial team and billing operations to support higher growth rates by 2027, as part of a three-year growth strategy aiming to reach $500 million in revenue with 20% adjusted EBITDA profitability.
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