Invitae (NVTA 400.00%) announced its third-quarter results on Nov. 8, 2021. In this Motley Fool Live video recorded on Nov. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss what especially stood out in the company's Q3 update.
10 stocks we like better than Invitae
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Invitae wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 10, 2021
Keith Speights: Well, Brian, there's another Motley Fool genomics favorite, Invitae. Ticker there is NVTA. It also announced its Q3 results on Monday of this week. What especially stood out, in your view, with Invitae's latest update?
Brian Orelli: Unlike Fulgent, Invitae is having a hard time finding a niche in its genetic testing, at least in growing substantially as fast as Fulgent does.
Revenue was up 66%, billable tests volume was up 89%. Operating expenses more than doubled. Anytime you have in your expenses go up more than your revenue, that's not going to do the right thing for your earnings.
Shares fell 22% after earnings, I think largely based on the fact that their profits are getting worse.
They have 1.25 billion in the bank. Then their cash brought in for the quarter, excluding the amount they paid for acquisitions was 148.1 million. That's a current run rate of over two years of cash.
I think they are in OK shape right now. But that's something to look out for is how fast can they grow the revenue versus how fast are they growing their operating expenses?
