Shares of CareDx (CDNA +14.72%) climbed on Friday after the precision medicine diagnostics specialist lifted its full-year sales and earnings forecast.
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Healthy growth
CareDx's revenue surged 52% year over year to $132 million in the second quarter.
The healthcare company's non-invasive tests help doctors monitor the health of transplant patients. The Centers for Medicare & Medicaid Services (CMS) affirmed coverage for CareDx's surveillance testing for kidney, heart, and lung transplants earlier this month.
"Revenue growth reflected continued demand across transplant programs, favorable reimbursement dynamics, and increases in testing activity across both surveillance and for-cause settings," the company said in its earnings release.
NASDAQ: CDNA
Key Data Points
All told, CareDx's adjusted net income more than tripled to $20 million, or $0.37 per share. That was well above Wall Street's estimates, which had called for per-share profits of $0.23.
Raised guidance
These robust results prompted CareDx to increase its full-year revenue outlook to $490 million to $500 million, up from a prior forecast of $447 million to $465 million.
Management also now projects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $66 million to $78 million, up from $43 million to $57 million.
CareDx's recently completed acquisition of oncology diagnostics provider Naveris should help accelerate its expansion.
"We have transformed CareDx into a differentiated precision molecular diagnostics company with a unique set of core competencies that position us for continued profitable growth," CEO John Hanna said.
