Guardant Health (GH 1.11%) unveiled its latest set of quarterly results on Thursday, and the biotech's encouraging performance gave the stock significant upward momentum. The company's shares were up by 28% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
Higher revenue and a narrower deficit
In its third quarter, Guardant's revenue came in just above $265 million, for a robust (39%) year-over-year increase. It also managed to trim its net loss not according to generally accepted accounting principles (GAAP); this was a bit more than $48 million ($0.39 per share) against the $55 million of the year-ago quarter.
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Both headline numbers crushed the average analyst estimates. Pundits following Guardant had estimated it would earn less than $236 million on the top line, and post a much deeper non-GAAP (adjusted) net loss of $0.79 per share.
Another reason for investors to be cheerful was Guardant's raising of its full-year 2025 guidance. Revenue is now anticipated to come in at $965 million to $970 million, a notably higher range than the previous $915 million to $925 million. The new adjusted gross margin forecast is 64% to 65%, up slightly from the preceding 63% to 64%.
NASDAQ: GH
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The bulls had their say
A flurry of analyst price target raises, and even a recommendation upgrade, closely followed Guardant's earnings release. The upgrading party was Nephron's Jack Meehan, who now believes the stock is worthy of a hold, one peg higher than his previous sell. He set his price target at $80 per share.
