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Invitae (NVTA) to Report Q4 Earnings: What's in the Offing?
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Invitae Corporation is scheduled to release fourth-quarter 2020 results on Feb 17, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 3.3%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $97.9 million, suggesting growth of 47.6% from the year-ago reported figure. The consensus estimate for the bottom line stands at a loss of 58 cents per share.
Factors to Note
Over the last few quarters, genetic testing, one of Invitae’s key business segments, has been consistently delivering robust results, a trend which is likely to have continued in the fourth quarter.
Lately, the company has been witnessing a rise in the number of oncology patients undergoing genetic testing. In the third quarter of 2020, the company accessioned around 170,000 samples for genetic testing, which reflected a strong year-over-year increase. The company also reported solid billable volume growth in the third quarter. This trend is expected to have continued in the quarter to be reported.
Strong volume growth across all segments, particularly in reproductive tests and biopharma programs, is expected to have driven fourth-quarter performance.
The company’s non-invasive prenatal screening (NIPS) using maternal cell-free DNA has been strengthening its portfolio of comprehensive women's health genetic testing services lately. This is expected to get reflected in the fourth-quarter results. The acquisitions of YouScript and Genelex, closed in March 2020, are expected to have strengthened Invitae’s position in the pharmacogenomics market in the fourth quarter.
Further, the company completed the buyout of ArcherDX in October 2020, which will enable Invitae to bring comprehensive cancer genetics and precision oncology to patients globally. This development might have contributed to the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.
Earnings ESP: Invitae has an Earnings ESP of -19.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Invitae carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +46.94% and a Zacks Rank of 2.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Invitae (NVTA) to Report Q4 Earnings: What's in the Offing?
Invitae Corporation is scheduled to release fourth-quarter 2020 results on Feb 17, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 3.3%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $97.9 million, suggesting growth of 47.6% from the year-ago reported figure. The consensus estimate for the bottom line stands at a loss of 58 cents per share.
Factors to Note
Over the last few quarters, genetic testing, one of Invitae’s key business segments, has been consistently delivering robust results, a trend which is likely to have continued in the fourth quarter.
Lately, the company has been witnessing a rise in the number of oncology patients undergoing genetic testing. In the third quarter of 2020, the company accessioned around 170,000 samples for genetic testing, which reflected a strong year-over-year increase. The company also reported solid billable volume growth in the third quarter. This trend is expected to have continued in the quarter to be reported.
Invitae Corporation Price and EPS Surprise
Invitae Corporation price-eps-surprise | Invitae Corporation Quote
Strong volume growth across all segments, particularly in reproductive tests and biopharma programs, is expected to have driven fourth-quarter performance.
The company’s non-invasive prenatal screening (NIPS) using maternal cell-free DNA has been strengthening its portfolio of comprehensive women's health genetic testing services lately. This is expected to get reflected in the fourth-quarter results.
The acquisitions of YouScript and Genelex, closed in March 2020, are expected to have strengthened Invitae’s position in the pharmacogenomics market in the fourth quarter.
Further, the company completed the buyout of ArcherDX in October 2020, which will enable Invitae to bring comprehensive cancer genetics and precision oncology to patients globally. This development might have contributed to the to-be-reported quarter’s performance.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.
Earnings ESP: Invitae has an Earnings ESP of -19.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Invitae carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +46.94% and a Zacks Rank of 2.
The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>