STAMFORD, Conn. - GeneDx Holdings Corp. (NASDAQ:WGS), known for its genomic insights in healthcare and having achieved an impressive 2,342% return over the past year according to InvestingPro data, anticipates surpassing its previous financial guidance for the full year and fourth quarter of 2024. The company, currently valued at $2.46 billion, has attracted positive attention from analysts, with four recently revising their earnings estimates upward. The company expects to report at least $299 million in revenue for the year, marking a 54% increase from the prior year, and at least $92 million for the fourth quarter, which is a 59% year-over-year rise and a 20% sequential increase.
For the full year 2024, GeneDx projects an adjusted gross margin of at least 64%, exceeding its prior forecast. The fourth quarter is expected to achieve an even higher adjusted gross margin of at least 68%, up from 64% in the preceding quarter. InvestingPro analysis reveals the company maintains a healthy financial position with a current ratio of 2.41, indicating strong liquidity to meet short-term obligations. Subscribers can access 10 additional exclusive ProTips and comprehensive financial metrics for deeper insights. This improvement includes a $6.8 million benefit related to a multi-year appeal recovery from a third-party payer, contributing $5.8 million to exome and genome revenues and $1.0 million to other test lines.
Exome and genome test revenues are anticipated to reach at least $75.8 million in the fourth quarter, a significant increase of 93% year-over-year and 26% sequentially. The volume of exome and genome test results also grew, with 20,676 tests performed in the fourth quarter, representing a 32% increase year-over-year and 7% sequentially. These tests accounted for 38% of all test result volume in the quarter.
The preliminary results have not yet been audited, and the company will release its finalized financial statements for the quarter and year ended December 31, 2024, before the market opens on February 18, 2025. Following the release, GeneDx management will host a conference call to discuss the results.
GeneDx's CEO, Katherine Stueland, highlighted 2024 as a transformative year, with the company achieving profitability milestones and expanding its team. She emphasized the economic impact of rare diseases, estimated at $1 trillion annually, and the importance of early diagnosis. CFO Kevin Feeley noted the expectation of a second consecutive quarter of adjusted net income and the first quarter of positive operational cash flow.
The company's outlook is based on forward-looking statements and is subject to risks and uncertainties, including changes in the healthcare industry and regulatory landscape. These statements have been made as of the date of the press release and may change in the future. According to InvestingPro's Fair Value analysis, the stock appears to be trading above its estimated Fair Value, with analysts setting price targets ranging from $70 to $118 per share. A detailed Pro Research Report, available as part of the InvestingPro subscription, provides comprehensive analysis of GeneDx's financial health, growth prospects, and market position.
This article is based on a press release statement from GeneDx.
In other recent news, GeneDx, a leader in genomic testing, delivered a significant financial performance by achieving profitability for the first time and reporting a 52% year-over-year revenue increase, reaching $76 million for the third quarter. The company has also raised its full-year 2024 revenue guidance to $284-$290 million. These developments are attributed to GeneDx's strategic expansion in the pediatric outpatient market and advancements in genomic testing offerings.
TD Cowen recently exhibited confidence in GeneDx, significantly raising the stock's price target from $75.00 to $118.00 while maintaining a Buy rating. The firm's revised price target is based on a thorough analysis, including discussions with Key Opinion Leaders and an examination of published studies on Whole Exome Sequencing and Whole Genome Sequencing. TD Cowen's analysis indicates that their 2026 forecasts could be 24% lower than the potential growth, with GeneDx possibly generating nearly $3.50 in earnings per share.
Moreover, GeneDx announced the appointment of Bryan Dechairo as the new Chief Operating Officer. With over three decades of experience in the diagnostics industry, Dechairo is expected to enhance the company's operational capabilities and foster broader adoption of genomic insights in healthcare. This appointment is part of strategic moves aimed at propelling GeneDx into its next growth phase.
Other recent developments include an anticipated partnership with Epic to integrate genomic testing into major health systems in 2025. Despite a decrease in prior period collections, down to $6.3 million from $7 million, GeneDx continues to lead the genomic newborn screening market with the average selling price for exome and genome tests increasing to $3,100, a $500 increase year-over-year. These are the recent developments that have shaped GeneDx's trajectory.
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