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Guardant Health (GH) to Report Q4 Earnings: What's in Store?

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Guardant Health, Inc. (GH - Free Report) is scheduled to report fourth-quarter 2019 and full-year results on Feb 24, after the market closes.

The company boasts an excellent earnings surprise history, surpassing expectations in each of the trailing four quarters, the average being 39.21%. In the last reported quarter, Guardant Health delivered a positive surprise of 64.10%.

Shares of Guardant Health have soared 63.7% in the past year versus the industry’s decline of 1.2%.

Let’s see, how things are shaping up for this announcement.

Factor to Consider

Guardant Health’s top line mainly comprises revenues generated from its Precision oncology testing and development services.

The company reported 13,259 tests to clinical customers and 5,280 tests to biopharmaceutical customers in the third quarter of 2019, reflecting a year-over-year increase of 89% and 111%, respectively. Its sales from these tests shot up 181% year over year in the last reported quarter. It remains to be seen whether this number further increased in the to-be-reported quarterly results.

Major Updates on Q4 Earnings Call

Investors will be keen to get an update on the premarket approval application package for liquid biopsy based Guardant360 test, which the company submitted in November 2019 to the FDA.

The company also launched the CLIA-validated version of the LUNAR assay for prospective clinical studies during the same time. We expect management to provide a detailed update on this development during the upcoming investors’ call.

Recent Developments

In January 2020, Guardant Health entered into a strategic collaboration with Amgen (AMGN - Free Report) to develop a blood-based companion diagnostic (CDx) test for the latter’s investigational oral therapy AMG 510, that inhibits KRAS G12C mutant protein.

Earlier in October 2019, Guardant Health initiated the ECLIPSE study to evaluate the performance of its LUNAR-2 blood test for detecting colorectal cancer in average-risk adult patients. If successful, the company expects this study data to support a premarket approval (PMA) submission to the FDA.

We expect management to provide a detailed update on the same at the upcoming earnings conference.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Guardant Health this season. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But this is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Guardant Health has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 30 cents per share.

Zacks Rank: Guardant Health sports a Zacks Rank of 1, which increases the predictive power of ESP. However, the 0.00% ESP makes surprise prediction difficult.

Guardant Health, Inc. Price and EPS Surprise

Stocks That Warrant a Look

Here are a few healthcare stocks worth considering as our model shows that these have the right mix of elements to beat estimates this time around.

Clovis Oncology, Inc. (CLVS - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #2. The company is scheduled to release earnings results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sage Therapeutics, Inc. (SAGE - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #3. The company is scheduled to release earnings results on Feb 27.

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