The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genomic Health met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins expanded across the board.
Genomic Health reported revenue of $53.4 million. The 17 analysts polled by S&P Capital IQ foresaw sales of $53.9 million. Sales were 13% higher than the prior-year quarter's $47.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.08. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.08 for Q4 were 60% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 86.2%, 470 basis points better than the prior-year quarter. Operating margin was 5.1%, 230 basis points better than the prior-year quarter. Net margin was 4.8%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $56.2 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $236.8 million. The average EPS estimate is $0.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 246 members out of 261 rating the stock outperform, and 15 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Genomic Health a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genomic Health is outperform, with an average price target of $26.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Genomic Health. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.