What happened
Shares of Natera (NTRA 11.64%) were soaring 18.7% higher at 11:04 a.m. ET on Friday. The big gain came after the DNA testing company announced its second-quarter results following the market close on Thursday.
Natera reported Q2 revenue of $261.4 million, up 31.9% year over year. This result handily topped the consensus revenue estimate of $241.5 million.
The company posted a net loss in the second quarter of $110.8 million, or $0.97 per share. However, this reflected improvement from the net loss of $145.2 million, or $1.50 per share, in the prior-year period. It also beat the average analysts' estimate of a net loss of $1.09 per share.
Natera also raised its 2023 full-year revenue guidance. It now expects revenue of between $1.015 billion and $1.035 billion, up from its previous outlook of revenue in the range of $995 million to $1.015 billion.
NASDAQ: NTRA
Key Data Points
So what
Today's jump reverses a general downtrend for the genetic testing stock after Natera started off the year with a bang. Investors have reason to be more optimistic about the company's business after the Q2 update.
Natera is especially building momentum for its oncology business. The company processed nearly 89% more oncology tests in the second quarter than in the same period a year ago.
Now what
Natera CEO Steven Chapman said in the company's Q2 call that he is "hopeful for a positive update soon" about the American Congress of Obstetricians and Gynecologists (ACOG) guidelines. Favorable guidelines could boost the company's prenatal testing revenue.
