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Fulgent Genetics (FLGT) to Post Q4 Earnings: What's in Store?
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Fulgent Genetics, Inc. (FLGT - Free Report) is set to report fourth-quarter and full-year 2021 results on Feb 23, after market close.
In the last-reported quarter, the company’s earnings of $3.93 missed the Zacks Consensus Estimate by 202.3%. Earnings surpassed estimates in three of the trailing four quarters and missed in one, the average beat being 63.04%
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
The core NGS armof Fulgent Genetics has been witnessing strong year-over-year gains over the past few quarters. As part of its efforts to expand its core NGS business footprint globally, the company recently acquiredCSI Laboratories, a CLIA-certified and CAP-accredited cancer reference laboratory. Earlier, Fulgent Genetics had noted that CSI Laboratories would add almost 400 new tests to its NGS test menu, including NGS cancer test to a liquid biopsy and MRD, hereditary cancer test, and a comprehensive test menu for rare diseases and adult genetics, which, per management, is an industry first. Following a JV, the company expanded its operations in China's rapidly growing genetic testing market to gain traction in terms of the NGS test menu and sequencing services.
In the to-be-reported quarter, these developments are likely to have contributed to growth significantly. Further, the company is also likely to have gained from its strategic investment in Helio Health. Notably, Helio Health is an emerging liquid biopsy company, focused on the early detection of cancer. Fulgent's strategic agreement with Helio Health is expected to enable it to achieve traction in the early detection liquid biopsy industry in both the U.S. and China markets.
Regarding COVID-19 NGS revenues, in the fourth quarter, the company is expected to have witnessed a rise in testing volume, banking on a spike in demand for COVID testing through the Q4 months. In the last-reported third quarter, the company completed approximately 2.2 million COVID-19 tests. This momentum is expected to have continued in Q4 with the spike in the more contagious Omicron variant of COVID-19 in this period. In this line, on Dec 1, Fulgent Genetics confirmed that the company’s RT-PCR test for SARS-CoV-2 can successfully detect the Omicron variant of the virus.
Further, government agencies and schools have put regular testing protocols in place to both supplement vaccination programs and monitor potential breakthrough cases. This should have positively contributed to the company’s Q4 revenues.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter 2021 revenues is pegged at $192.1 million, suggesting a 34.9% plunge over the year-ago reported figure.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 earnings per share of $2.66 indicates a 57.1% decline from the year-ago adjusted figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #1.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
The Joint (JYNT - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 2. The Joint is slated to release fourth-quarter 2021 results on Feb 24.
Sight Sciences (SGHT - Free Report) has an Earnings ESP of +1.77% and a Zacks Rank of 2. Sight Sciences is slated to release fourth-quarter 2021 results on Feb 23.
Sight Sciences’ 2022 earnings growth rate is estimated at 52.9%. SGHT’s one-year projected sales growth rate is pegged at 53.52%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +5.38% and is a Zacks #2 Ranked stock.
Allscripts Healthcare is slated to release fourth-quarter 2021 results on Feb 24. Allscripts Healthcare’s long-term earnings growth rate is estimated at 11.1%.
Image: Bigstock
Fulgent Genetics (FLGT) to Post Q4 Earnings: What's in Store?
Fulgent Genetics, Inc. (FLGT - Free Report) is set to report fourth-quarter and full-year 2021 results on Feb 23, after market close.
In the last-reported quarter, the company’s earnings of $3.93 missed the Zacks Consensus Estimate by 202.3%. Earnings surpassed estimates in three of the trailing four quarters and missed in one, the average beat being 63.04%
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
The core NGS armof Fulgent Genetics has been witnessing strong year-over-year gains over the past few quarters. As part of its efforts to expand its core NGS business footprint globally, the company recently acquiredCSI Laboratories, a CLIA-certified and CAP-accredited cancer reference laboratory. Earlier, Fulgent Genetics had noted that CSI Laboratories would add almost 400 new tests to its NGS test menu, including NGS cancer test to a liquid biopsy and MRD, hereditary cancer test, and a comprehensive test menu for rare diseases and adult genetics, which, per management, is an industry first. Following a JV, the company expanded its operations in China's rapidly growing genetic testing market to gain traction in terms of the NGS test menu and sequencing services.
Fullgent Genetics Price and EPS Surprise
Fullgent Genetics price-eps-surprise | Fullgent Genetics Quote
In the to-be-reported quarter, these developments are likely to have contributed to growth significantly. Further, the company is also likely to have gained from its strategic investment in Helio Health. Notably, Helio Health is an emerging liquid biopsy company, focused on the early detection of cancer. Fulgent's strategic agreement with Helio Health is expected to enable it to achieve traction in the early detection liquid biopsy industry in both the U.S. and China markets.
Regarding COVID-19 NGS revenues, in the fourth quarter, the company is expected to have witnessed a rise in testing volume, banking on a spike in demand for COVID testing through the Q4 months. In the last-reported third quarter, the company completed approximately 2.2 million COVID-19 tests. This momentum is expected to have continued in Q4 with the spike in the more contagious Omicron variant of COVID-19 in this period. In this line, on Dec 1, Fulgent Genetics confirmed that the company’s RT-PCR test for SARS-CoV-2 can successfully detect the Omicron variant of the virus.
Further, government agencies and schools have put regular testing protocols in place to both supplement vaccination programs and monitor potential breakthrough cases. This should have positively contributed to the company’s Q4 revenues.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter 2021 revenues is pegged at $192.1 million, suggesting a 34.9% plunge over the year-ago reported figure.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 earnings per share of $2.66 indicates a 57.1% decline from the year-ago adjusted figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #1.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
The Joint (JYNT - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 2. The Joint is slated to release fourth-quarter 2021 results on Feb 24.
The Joint’s long-term historical earnings growth rate is estimated at 103.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sight Sciences (SGHT - Free Report) has an Earnings ESP of +1.77% and a Zacks Rank of 2. Sight Sciences is slated to release fourth-quarter 2021 results on Feb 23.
Sight Sciences’ 2022 earnings growth rate is estimated at 52.9%. SGHT’s one-year projected sales growth rate is pegged at 53.52%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +5.38% and is a Zacks #2 Ranked stock.
Allscripts Healthcare is slated to release fourth-quarter 2021 results on Feb 24. Allscripts Healthcare’s long-term earnings growth rate is estimated at 11.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.