What happened

Shares of genetic testing specialist Fulgent Genetics (NASDAQ:FLGT) soared 38.1% in November, according to data from S&P Global Market Intelligence. For context, the S&P 500 returned 11% last month.

In 2020, shares of the healthcare company have rocketed 238% through Friday, Dec. 4, compared to the broader market's 16.5% return over this period. 

So what

We can attribute Fulgent Genetics stock's strong performance last month in part to a continuation of the momentum it's had since the summer. This momentum is being driven by the company's robust sales of its tests for the novel coronavirus, which causes COVID-19. In addition, the stock got a boost from the company's release of third-quarter results, along with full-year guidance, that were better than Wall Street had expected. 

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Image source: Getty Images.

In Q3, revenue surged 883% year over year to $101.7 million, or roughly double the analyst consensus estimate. Adjusted earnings per share (EPS) were $2.08, up from $0.14. That result easily beat the $0.55 consensus estimate. 

FLGT Chart

Data by YCharts.

Now what

Management increased its full-year 2020 revenue guidance twice in November: first when it released the company's Q3 results on Nov. 9 and then again on Nov. 23.

The first raise took the 2020 revenue expectation to $235 million, up from $135 million. The second one boosted the figure to "at least $300 million." The current outlook represents revenue growth of more than 800% year over year.

In the Q3 earnings release, CEO Ming Hsieh said that management believes "the relationships we have built during this pandemic from both a customer and reimbursement standpoint, along with the expansion of our commercial capabilities [...] will help drive our business in the years to come."

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