What happened

Coronavirus stock Co-Diagnostics (CODX -1.85%) was a standout on Friday as it zoomed well past the gain of the S&P 500 index to book a 7.6% increase on the day. Investors were cheered by a far better-than-expected earnings report published that morning by the testing-products specialist.

So what

Bolstered by sales of its Logix Smart COVID-19 test, Co-Diagnostics managed to lift its revenue by 38% in its third quarter to a new record of $30.1 million. The bottom line didn't follow the same path, though, with net profit coming in at $11.5 million ($0.38 per share). That was down from the Q3 2020 net profit of $15.7 million. 

A doctor conferring with a peer.

Image source: Getty Images.

That bottom-line slide notwithstanding, Co-Diagnostics' quarterly figures trounced analyst estimates. On average, the professional forecasters tracking the stock were expecting only $24.3 million in revenue and $0.21 in earnings per share (EPS).

Co-Diagnostics took pains to emphasize that its business is about far more than COVID testing. In the healthcare company's earnings release, CEO Dwight Egan was quoted as saying:

We believe that our diverse international customer base, clean balance sheet and steady cash accumulation, in addition to our high-quality products whose performance has been validated by laboratories and regulatory bodies across the world, help us stand out from the crowd and all contributed to our record sales in Q3.

Now what

Co-Diagnostics believes that 2021 as a whole will be a banner year. It proffered full-year guidance predicting revenue will fall between $96 million to $100 million, with per-share earnings coming in at $1.07 to $1.16. If that prophecy is fulfilled, it would represent significant revenue growth from 2020's $74.6 million but a decline from that year's EPS of $1.52.