Fulgent Genetics raised its revenue outlook to at least $300 million for 2020 amid a surge in demand for its COVID-19 testing solutions. The genetic testing service provider’s 2020 revenue guidance is up about 28% from the previous guidance and represents an 800% jump from the same period a year ago. Analysts expect 2020 revenues to generate $237.4 million.
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Fulgent Genetics’ (FLGT) CFO Paul Kim stated that since reporting 3Q results on Nov. 9, the company has seen “accelerating demand for our COVID-19 tests.” Kim said that “As COVID-19 cases continue to rise across the country, we expect to see increasing demand for testing through the balance of the year.”
“We remain well positioned to meet this demand with our ample resources and capacity to run more than 60,000 tests per day,” he added.
Fulgent Genetics’ 3Q earnings of $2.08 per share crushed the Street’s estimates of $0.55. Its revenues of $101.7 million also surpassed the consensus estimates of $48.5 million. (See FLGT stock analysis on TipRanks)
Meanwhile, shares declined 1.9% in Tuesday’s pre-market session as BTIG analyst Sung Ji Nam downgraded Fulgent Genetics stock to Hold from Buy. The analyst cited the high valuation and “limited visibility” related to the long-term durability of the company’s COVID testing business. She added that the stock has already rallied about 238% year-to-date and looks fully priced at current levels.
Currently, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy analyst consensus. The average price target stands at $63.33 and implies upside potential of about 45.3% to current levels.
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