Fulgent Genetics (FLGT -0.91%) announced its third-quarter results on Nov. 9, 2021. In this Motley Fool Live video recorded on Nov. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss what investors should like about the company's Q3 update.

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Keith Speights: Brian, we regularly receive questions about Fulgent Genetics. The company provided its Q3 update on Tuesday. What should investors especially note about Fulgent's results?

Brian Orelli: Revenue was up 124 percent year over year to 227.9 million. The core revenue, which is their legacy next-generation sequencing business, was up 292% year over year and that was 40.1 million of that total, 227.9 million.

They raised revenue guidance to $930 million. It was previously at $800 million, so that was a $130 million increase. Then fourth-quarter core revenue is only supposed to go up 166%. There's a little bit of a slowdown there.

But maybe the difference is the third quarter of last year was lower than the fourth quarter of last year. The comparison ones are harder, but so there's still going to be growing that core business substantially and that's great to see.

I think it was just overall a really solid quarter for Fulgent Genetics.

Speights: But I think everyone should keep in mind with Fulgent and I like Fulgent. I'm looking at their outlook for Q4. They're projecting revenue of $189 million, the core revenue, the non-COVID revenue is only around $32 million of that estimate.

The company is still heavily relying on COVID-19 testing for now, but are still doing a good job and building up its genetic testing base outside of COVID.

Brian Orelli: I think investors are valuing it on the fact that the COVID-19 testing is going to come down.