Genomic Jumps on Better-Than-Expected 4Q
Wednesday February 6, 11:03 am ET
Genomic Health Jumps After Posting Better-Than-Expected 4th-Quarter Results; Analyst Upgrades
NEW YORK (AP) -- Shares of Genomic Health Inc. soared Wednesday after the clinical diagnostic test developer reported better-than-expected fourth-quarter results, driven by demand for its breast cancer test.
Genomic's stock jumped $2.55, or 12.8 percent, to $22.41 during morning trading on higher-than-average volume. The stock has ranged between $14.75 and $27.02 over the past year.
For the quarter ended Dec. 31, the company narrowed its loss to $6 million, or 21 cents per share, from a loss of $9 million, or 37 cents per share, in the same quarter a year before.
Genomic said late Tuesday its fourth-quarter revenue more than doubled to $19.3 million, driven by doctor, patient and payer adoption of its Oncotype DX product, a lab test that predicts the likelihood of breast cancer. Revenue in the year-ago quarter was $8.6 million.
Analysts expected a loss of 24 cents per share on revenue of $18.1 million, according to a Thomson Financial poll.
Furthermore, Genomic forecast 2008 revenue of $100 million to $110 million, within range of the average analyst estimate of $104.6 million.
In a note to investors Wednesday, Cantor Fitzgerald analyst George Zavoico upgraded Genomic to "Buy" from "Hold," noting the greater-than-forecast sales for Oncotype DX.
The analyst noted the American Society of Clinical Oncology and the National Comprehensive Cancer Network have recommended use of Oncotype DX in their breast cancer treatment guidelines. Additionally, health plans increasingly are providing reimbursements to Genomic for use of Oncotype DX, according to Zavoico.
Zavoico raised his share price target to $34 from $27.
RBC Capital Markets analyst Bruce Jackson said all the fourth-quarter results beat his estimates. In a note to clients, he also expressed optimism for the company's colon cancer test in development.
Jackson kept his rating at "Sector Perform" with a $19.86 price target. |
