GeneDx (NASDAQ:WGS – Get Free Report) issued its earnings results on Monday. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.21, FiscalAI reports. The business had revenue of $123.10 million during the quarter, compared to analysts’ expectations of $122.93 million. GeneDx had a positive return on equity of 4.12% and a negative net margin of 23.41%. During the same quarter in the prior year, the firm earned ($0.27) EPS.
Here are the key takeaways from GeneDx’s conference call:
- GeneDx reported Q3 revenue of $123.1 million, 72% adjusted gross margin and $8.6 million in adjusted net income. It raised full-year adjusted gross margin guidance to about 71% and adjusted net income guidance to at least $12 million, while reaffirming revenue guidance of $475 million–$490 million, now expected at the low end.
- The company adjusted its full-year exome and genome volume growth outlook to at least 28% and revenue growth to at least 17%, citing new requirements to collect payer documentation before testing. Accessions grew 28% year over year versus 25% growth in reported test volume; management said most of the gap reflects delays, though some orders may be canceled.
- Revenue-cycle improvements lifted the outpatient genome collection rate to 36% from 32% in Q2, while the blended average reimbursement rate rose 5% sequentially to $3,436. GeneDx said most denials it analyzed were administrative or procedural, and it expects further gains as it implements new processes and technology.
- Demand grew across the company’s markets, and management said its GenPeds sales team is already paying for itself and could become its largest single customer segment by volume in 2027. The biopharma and data business also grew for a second consecutive quarter, adding Mirum Pharmaceuticals and Beren Therapeutics as sponsored-testing partners.
- GeneDx expects PAMA changes to create a mid-single-digit headwind to total revenue in 2027, with about 45% of revenue exposed. Management expects revenue-cycle improvements to more than offset that pressure, but did not provide 2027 guidance.
GeneDx Stock Up 5.4%
GeneDx stock opened at $65.72 on Tuesday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.06 and a current ratio of 3.30. GeneDx has a 52-week low of $32.21 and a 52-week high of $170.87. The firm has a 50 day moving average price of $76.42 and a two-hundred day moving average price of $71.15. The firm has a market cap of $1.96 billion, a price-to-earnings ratio of -18.05 and a beta of 2.00.
Insider Buying and Selling
In related news, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total transaction of $363,890.08. Following the completion of the transaction, the chief financial officer owned 44,945 shares of the company’s stock, valued at $4,387,081.45. This trade represents a 7.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Katherine Stueland sold 10,501 shares of GeneDx stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total transaction of $1,025,002.61. Following the transaction, the chief executive officer directly owned 115,476 shares of the company’s stock, valued at $11,271,612.36. This represents a 8.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 19,206 shares of company stock worth $1,808,056 in the last 90 days. Corporate insiders own 25.17% of the company’s stock.
More GeneDx News
Here are the key news stories impacting GeneDx this week:
- Positive Sentiment: GeneDx reported third-quarter EPS of $0.28, above the $0.07 consensus estimate, and revenue of $123.1 million, slightly ahead of expectations. EPS also improved from a loss in the year-earlier quarter. GeneDx Q3 earnings and revenue results
- Positive Sentiment: An earnings analysis describes GeneDx as moving toward sustained profitability, pointing to reimbursement improvements, operational efficiencies and AI tools to support billing and collections as potential contributors. GeneDx Q3 earnings analysis
- Negative Sentiment: Shares reportedly tumbled after GeneDx lowered its growth targets. That outlook shift raises concern about the pace of future expansion and appears to have overshadowed the quarterly results. GeneDx shares and lowered growth targets
Analyst Ratings Changes
Several analysts have recently weighed in on the company. Zacks Research cut GeneDx from a “strong-buy” rating to a “hold” rating in a report on Friday, October 9th. Wall Street Zen upgraded shares of GeneDx from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Guggenheim raised their price objective on shares of GeneDx from $74.00 to $83.00 and gave the company a “buy” rating in a report on Thursday, October 1st. BTIG Research reiterated a “buy” rating on shares of GeneDx in a research report on Tuesday. Finally, TD Cowen reissued a “buy” rating on shares of GeneDx in a report on Wednesday, July 15th. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $90.86.
Read Our Latest Report on GeneDx
About GeneDx
GeneDx is a genomic testing company focused on helping clinicians diagnose rare and inherited conditions. Its services include whole exome and whole genome sequencing, along with other genetic tests and clinical interpretation of results.
The company’s testing is used by healthcare providers to support diagnosis and care decisions, particularly for patients with suspected rare genetic disorders. GeneDx also offers testing related to hereditary cancer risk.
Founded in 2000 by researchers with experience at the National Institutes of Health, GeneDx has developed its business around applying genomic information in clinical care.
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