WGS Earnings Prediction
The chart below shows how WGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WGS sees a -2.67% change in stock price 10 days leading up to the earnings, and a -2.06% change 10 days following the report. On the earnings day itself, the stock moves by +1.57%. This data can give you a slight idea of what to expect for the next quarter's release.
WGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
76.87M
44.22%
9.02%
Gross Margin
62.22%
31.29%
2.15%
Operating Margin
-10.12%
-83.40%
-32.53%
Net Margin
-10.81%
-86.37%
-73.87%
EPS
-0.31
-81.10%
-71.82%
No Data Available
WGS Earnings Analysis
GeneDx Holdings Corp. Class A Common Stock Corporation (WGS.O) Earnings Conference Call
Positive
Record Revenue Surge: 1. Record Revenue Growth: GeneDx reported Q3 2024 revenues of $76.6 million, marking a 52% increase year-over-year and an 11% sequential growth from Q2 2024.
Gross Margin Improvement: 2. Improved Gross Margin: The company achieved a gross margin of 64% in Q3 2024, up from 48% in the same quarter last year, reflecting a 16% sequential increase.
Test Volume Surge: 3. Significant Test Volume Increase: GeneDx delivered over 19,000 exome and genome tests in Q3 2024, a 46% increase year-over-year and a 7% sequential increase from Q2 2024.
Cash Flow Enhancement: 4. Positive Cash Flow Improvement: The company achieved a net cash burn of $5 million in Q3 2024, an 88% improvement year-over-year and marking the tenth consecutive quarter of cash flow improvement.
Increased Revenue Forecast: 5. Raising Revenue Guidance: GeneDx raised its full-year 2024 revenue guidance to between $284 million and $290 million, indicating strong confidence in continued growth.
Negative
Weather Impact on Guidance: 1. Impact of Weather on Q4 Guidance: The early part of Q4 was negatively impacted by severe weather events, including hurricanes and tornadoes in the Southeast, which may affect revenue recovery and overall performance.
Pediatric Neurology Market Opportunity: 2. Limited Penetration in Pediatric Neurology: Despite a strong growth trajectory, GeneDx is only 12% penetrated in the pediatric neurologist market, indicating significant room for improvement and potential revenue loss if growth does not accelerate.
Cash Burn Challenges: 3. Cash Burn Remains a Concern: Although net cash burn improved by 88% year-over-year, it still amounted to $5 million in Q3 2024, highlighting ongoing cash flow challenges despite recent profitability.
Newborn Screening Delays: 4. Slow Adoption of Newborn Screening: The commercial launch of genomic newborn screening is expected to take several years, delaying potential revenue from this segment and indicating a slow market adoption process.
NICU Testing Challenges: 5. Operational Challenges in NICU Testing: While there is growth in NICU testing, the reliance on enterprise sales and the need for system-wide integration with partners like Epic may slow down the ramp-up of revenue in this segment.
WGS FAQs
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WGS Earning Call Sentiment
GeneDx Holdings Corp. (WGS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WGS.O
8.89%Positive
The earnings call presents a strong financial performance with a 52% revenue increase, improved gross margins, and positive net income. The partnership with Epic and product enhancements are promising. However, concerns about cash burn and share issuance slightly temper the outlook. The Q&A highlights growth and momentum, but some management responses lack clarity. Overall, the positive financial results and optimistic guidance suggest a stock price increase, categorized as positive (2% to 8%).
