CareDx, Inc (NASDAQ: NASDAQ:CDNA), a company specializing in precision medicine solutions, received a reaffirmed Neutral rating from the investment firm H.C. Wainwright.
The rating follows the company's preliminary financial results for the third quarter of 2024, which were shared during its Investor Day last week.
CareDx is expected to report total revenues between $82 million and $83 million for 3Q24, indicating a year-over-year (YoY) growth of approximately 23%. This figure surpasses the analyst's earlier projection of $79.5 million.
The revenue growth has been attributed to the company's testing services, which are projected to bring in $60 million to $61 million, marking a 26% increase YoY. This includes $1.2 million from tests performed in previous quarters.
The volume of testing services saw a significant rise as well, with approximately 44,600 tests conducted in 3Q24, which is a 16% YoY growth and an increase from 43,700 tests in the second quarter of 2024.
CareDx's Lab Products revenue also showed an upward trend with a 7% YoY growth to $10.2 million, while its Patient and Digital Solutions revenue grew by 20% YoY to $11.9 million during the same period.
In other recent news, CareDx Inc. has experienced significant developments. The company reported a strong 31% year-over-year increase in Q2 2024 revenue, reaching $92.3 million, with growth seen across Testing Services, Patient and Digital Solutions, and Lab Products segments. CareDx also announced the appointment of Jing Huang as Chief Data and AI Officer, who is expected to enhance patient care and improve business efficiency through data science methods and AI.
The Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have concluded their investigations into CareDx without pursuing any charges. Furthermore, analysts from BTIG upgraded CareDx from Neutral to Buy following a decision by Medicare contractor Palmetto GBA not to finalize its draft Local Coverage Determination. This reinstates longstanding Medicare coverage for CareDx's AlloSure and AlloMap tests, as well as HeartCare, used to detect early signs of organ transplant rejection.
CareDx also expanded its leadership team with the appointment of Keith Kennedy as Chief Operating Officer, Jessica Meng as Chief Commercial Officer, and Marica Grskovic as Chief Strategy Officer.
InvestingPro Insights
CareDx's recent financial performance aligns with several InvestingPro Tips and metrics, providing additional context for investors. The company's strong revenue growth, as reported in its preliminary Q3 2024 results, is reflected in the InvestingPro data showing a 31.26% quarterly revenue growth. This positive trend supports the InvestingPro Tip that "net income is expected to grow this year."
Despite the recent positive developments, it's worth noting that CareDx's stock has experienced significant volatility. The InvestingPro data shows a -10.93% 1-week price return and a -20.79% 1-month price return, aligning with the InvestingPro Tip that "stock price movements are quite volatile." However, the company has demonstrated impressive longer-term performance, with a 187.27% 6-month price total return and a 342.0% 1-year price total return.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for CareDx, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable as the market anticipates CareDx's full Q3 2024 financial results on November 4, 2024.
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