Fulgent Genetics stocks (NASDAQ:FLGT) rose 27% on Tuesday after the company posted a 56% rise in second-quarter revenues. For the three-month period ended June 30, Fulgent’s revenues rose to $8.4 million USD, up from $5.4 million USD for the same period last year.
The California-based company offers state-of-the-art next-generation sequencing technology to advance the field of genetic testing. Genetic testing is useful for deciphering an individual’s genetic makeup and seeing whether they are at risk of developing Parkinson’s disease. Genetic testing helps to identify whether a patient should be enrolled in clinical trials, and which trials would best benefit them.
Paul Kim, Chief Financial Officer, said, “We exceeded our guidance and expectations in the second quarter and are very pleased with our results. The investments we have made in our business are delivering tangible returns, evidenced by the strong growth in revenue and billable test volume that we demonstrated in the second quarter. At the same time, our gross margin improved sequentially and year-over-year as we are seeing the benefits of scale. We remain optimistic about our growth potential in the quarters ahead, and as such, we are raising our revenue outlook for the year.”
Fulgent Genetics stock hit a 52-week low last November but has bounced back strongly since, reaching a year high of $8.49 on Monday. This comes less than a month after Fulgent received approval to offer its next-generation sequencing-based tests in New York State, as well as an announcement that the company will be partnering with the Parkinson’s Foundation to offer genetic testing to people at risk of Parkinson’s disease.
Ming Hsieh, Chairman and Chief Executive Officer, said, “The momentum we are seeing is due to sustained strength across our business, including traction in the reproductive health and oncology markets, as well as growth in our sequencing as a service business. […] We believe this recent success is a testament to our differentiated technology capabilities that enable us to develop and deliver unique genetic testing solutions to a diverse customer base.”
What do you think about Fulgent Genetics Q2 results? Were you impressed?
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