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Fulgent Genetics (FLGT) to Post Q1 Earnings: What's in Store?

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Fulgent Genetics, Inc. (FLGT - Free Report) is set to report first-quarter 2022 results on May 3, after market close.

In the last reported quarter, the company’s earnings of $3.34 surpassed the Zacks Consensus Estimate by 25.6%. Earnings surpassed estimates in three of the trailing four quarters and missed in one, the average beat being 59.3%.

Let’s take a look at how things have shaped up prior to this announcement.

Factors at Play

Fulgent Genetics is likely to have gained from continued sales growth in the core NGS arm in the first quarter. In the last-reported fourth quarter of 2021, the core business registered 234% growth year over year. We anticipate the ongoing integration of CSI Laboratories to have a beneficial impact on the company’s core business in the to-be-reported quarter. The company has been continuously engaged in expanding of the sales team for CSI to fulfill its growth objectives. The growing footprint of the company’s China operations, following a joint venture, is also expected to have resulted in continued momentum across the core business.

Fulgent Genetics has been making significant progress with its strategic investment in Helio Health. In late 2021, the company noted the commercial availability of the HelioLiver liquid biopsy test in the United States. Per management, the HelioLiver test identifies early-stage hepatocellular carcinoma (HCC) with high accuracy. It has the potential to lower morbidity and mortality, as there are more curative treatment choices for HCC patients when the cancer is detected at an early stage. Meanwhile, in February 2022, Fulgent Genetics announced a strategic investment in Spatial Genomics, Inc. Under the terms of the deal, Fulgent Genetics will add Spatial Genomics’ sequential fluorescence in situ hybridization (seqFISH) technology and multiomics analysis platform to its suite of genomic testing solutions. We anticipate these developments to drive positive outcomes for the company’s core business in the to-be-reported quarter.

Fullgent Genetics Price and EPS Surprise

Fullgent Genetics Price and EPS Surprise

Fullgent Genetics price-eps-surprise | Fullgent Genetics Quote

In terms of COVID-19 NGS, the company recorded robust revenue growth in the fourth quarter owing to a surge in COVID-19 testing demand due to the emergence of the omicron variant. However, as the effects of the pandemic subside, we expect this demand to have gradually declined, impacting the first-quarter sales performance.

Despite the volatility surrounding COVID-19 testing, Fulgent Genetics’ COVID NGS test agreement with the Centers for Disease Control and Prevention (CDC) and strong relationships with organizations across the United States position it well to meet testing demand in case of future spikes.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $300.50 million, suggesting a 16.4% plunge over the year-ago reported figure. The Zacks Consensus Estimate for the company’s first-quarter 2022 earnings per share of $4.32 indicates a decline of 34.5% from the year-ago reported 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 #3.

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.

Computer Programs and Systems has an Earnings ESP of +1.52% and a Zacks Rank of #1. Computer Programs and Systems will release first-quarter 2022 results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Computer Programs and Systems’ long-term earnings growth rate is estimated at 14%. CPSI’s earnings yield of 8.47% compares favorably with the industry’s (7.51%).

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +10.04% and a Zacks Rank of #2. Alcon is expected to release first-quarter 2022 results on May 3.

Alcon’s long-term earnings growth rate is estimated at 14.7%. ALC’s earnings yield of 3.08% compares with the industry’s (7.01%).

Meridian Bioscience, Inc. has an Earnings ESP of +26.32% and a Zacks Rank of #2. Meridian Bioscience is scheduled to release second-quarter fiscal 2022 results on May 6.

Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.23% compares favorably with the industry’s 0.89%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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