Investing.com -- Shares of Standard BioTools Inc. (NASDAQ: LAB) surged 30% following the company's announcement of preliminary fourth quarter revenue that exceeded market expectations. The life sciences company reported an anticipated Q4 revenue of approximately $46.5 million, surpassing the consensus estimate of $42.3 million.
The positive market response comes after a challenging fiscal year, where Standard BioTools navigated industry-wide headwinds and implemented cost-saving measures. The company's CEO, Michael Egholm, Ph.D., attributed the strong performance to the team's hard work and the adoption of Standard BioTools Business Systems (SBS), which contributed to a reduction in operating expenses.
Despite the revenue beat, the company's Q4 revenue represents a 10% decrease year-over-year (YoY) on a pro forma basis. However, the company's full-year revenue is expected to be around $174 million, meeting the high end of their revised annual guidance. This guidance was adjusted during the second quarter to reflect the ongoing challenges faced by the industry.
TD Cowen analyst Dan Brennan commented on the results, stating, "The beat should be well received against a year of difficult macro, though focus will be on guidance to be provided later this quarter to assess FY'25." The analyst's remarks highlight the importance of the forthcoming guidance in evaluating the company's prospects for the next fiscal year.
Standard BioTools' preliminary financial results are based on current expectations and are subject to adjustments following the completion of annual audit procedures. The company plans to provide a more detailed discussion of its 2024 financial results and offer its outlook for 2025 when it reports its fourth quarter and full-year 2024 financial results later this quarter.
Investors and analysts are particularly interested in the company's future plans, including its strategy for acquisitions. In its investor deck, Standard BioTools outlined a goal to close 4-6 growth-driving acquisitions from 2025-2026, signaling an ambitious phase of expansion for the company.
As the market anticipates further details on the company's performance and strategic initiatives, today's stock movement reflects investor optimism surrounding Standard BioTools' ability to exceed expectations and navigate a tough macroeconomic landscape.
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