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Will Exome and Genome Growth Boost WGS' Q2 Earnings?

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Key Takeaways

  • WGS is projected to post Q2 revenues of $84.7M, up 20.1% from the prior-year quarter.
  • Pediatric neurology and new testing indications likely fueled outpatient volume growth for GeneDx.
  • WGS' Q2 gains may stem from AI-driven Fabric Genomics buyout and launch of ultraRapid sequencing.

GeneDx Holdings Corp. (WGS - Free Report) is slated to report second-quarter 2025 results on July 29, before the market opens.

The renowned genetic testing company reported first-quarter adjusted earnings of 28 cents per share, which topped the Zacks Consensus Estimate by a staggering 154.55%. GeneDx beat on earnings in each of the trailing four quarters, the average surprise being 145.82%.

WGS’ Q2 Estimates

The Zacks Consensus Estimate for revenues is pegged at $84.7 million, suggesting a 20.1% rise from the year-ago reported figure.

The Zacks Consensus Estimate for EPS is pinned at 10 cents, up 190.9% year over year.

Estimate Revision Trend Ahead of GeneDx’s Q2 Earnings

Estimates for earnings have moved north 11.1% to 10 cents in the past 30 days.

Here’s a brief overview of the company’s progress ahead of this announcement.

Factors at Play

The company exited the first quarter on a solid note, and we expect the momentum to have continued in the second quarter as well. Revenue growth is expected to have been led by the Exome and genome tests, driven by a robust volume gain. In the first quarter alone, GeneDx delivered 20,562 of these flagship tests, representing a 24% year-over-year increase and fueling a 62% jump in revenues. In April 2025, the company announced inborn errors of immunity as a new indication for its genetic testing, which might have boosted its performance in the to-be-reported quarter.

In the outpatient setting, pediatric neurology is likely to have driven strong growth. During the second quarter 2025, GeneDx completed the acquisition of Fabric Genomics, a pioneer in AI-powered genomic interpretation. The acquisition unlocks the next phase of genomic medicine, enabling an end-to-end centralized and decentralized model for offering clinically actionable genomic insights at a global scale.

Additionally, in the previous quarter, the company announced its launch on Aura, Epic’s specialty diagnostics suite, offering advanced genetic sequencing within health systems’ electronic health records to receive orders and send results. UNC Health became the first health system to integrate with GeneDx through Aura.

GeneDx Holdings Corp. Price and EPS Surprise

Furthermore, GeneDx announced ultraRapid Whole Genome Sequencing, which delivers a faster diagnosis and comprehensive genomic insights for neonatal and pediatric patients in the NICU and PICU in two days. We expect these developments to have favorably contributed to the company’s revenues in the to-be-reported quarter.

On the profitability side, GeneDx delivered 56% growth in the adjusted gross profit from continuing operations in the first quarter, which translated to a 69% increase in the gross margin. The company’s ongoing progress with operational efficiency is likely to have continued in the second quarter, aiding the bottom-line performance.

Earnings Whispers for GeneDx Stock

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here, as you can see below:

WGS’ Earnings ESP: GeneDx has an Earnings ESP of +5.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

WGS’ Zacks Rank: The company currently carries a Zacks Rank #2.

Other Top MedTech Picks

Here are some other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this time around:

CVS Health (CVS - Free Report) has an Earnings ESP of +2.06% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2025 results on July 31. You can see the complete list of today’s Zacks #1 Rank stocks here.

CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.08%. The Zacks Consensus Estimate for second-quarter EPS implies a year-over-year decline of 19.7%.

Cencora (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. The company is slated to release third-quarter fiscal 2025 results on Aug. 6.

The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.00%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a year-over-year increase of 13.2%.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #2 at present. The company is expected to release fiscal fourth-quarter 2025 results on Aug. 12.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.30%. The Zacks Consensus Estimate for fiscal fourth-quarter EPS suggests a year-over-year improvement of 1.3%.

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