What happened
Shares of Invitae (NVTA -55.88%), a company focused on genetic testing, fell 12% as 3 p.m. EST on Thursday. The decline can be traced to the release of third-quarter results.
So what
Here's an overview of the headline numbers from the period:
- Revenue jumped 106% to $37.4 million. That figure was ahead of what Wall Street was expecting.
- Net loss was $31.7 million, or $0.45 per share. This was better than the $0.47 loss that market-watchers were expecting.
- Cash burn was $18.4 million.
- Cash balance at quarter-end was $134.6 million thanks to a recently completed equity offering.
The strong results enabled Invitae to raise guidance for the full year:
- Volume is expected to exceed 285,000 samples during the year. That's a 10,000 bump from its prior outlook.
- Revenue guidance was raised by $5 million to a new range of $140 million to $145 million. For context, Wall Street was only expecting $138.5 million in total revenue.
Image source: Getty Images.
Despite reporting expectation-topping results and issuing bullish guidance, shares still swooned today. The fall isn't all that surprising when considering that Invitae's shares had been up more than 60% since the start of the year prior to today's release.
Now what
Investors couldn't have asked for much more in Invitae's third-quarter results. Revenue growth was strong, cash burn was low, and guidance was raised for the year. That's a trifecta that usually causes traders to cheer. However, given the stock's red-hot performance as of late, the sell-off isn't too surprising.
Overall, Invitae continues to execute against its growth plan. If you were bullish on the stock yesterday, I find no reason to change your tune today.
