Despite 36% Fall, Cue Health Q2 Revenues Exceed Expectations

Cue Health Inc HLTH reported Q2 sales of $87.7 million, down 36% Y/Y, but exceeded guidance due to stronger than anticipated COVID-19 testing orders from existing customers. The analysts estimated sales of $52.90 million.
Product revenues were $84.4 million compared to $137.4 million in Q2 2021.
Cue posted $80.5 million in private sector revenue, up from $32.4 million a year ago.
Disposable test cartridge revenue in Q2 2022 was $82.9 million.
The company noted plans to submit its standalone test for influenza to the FDA for de novo approval in Q3 for at-home and point-of-care use.
The firm's multiplex COVID-19 and influenza test are also on track for FDA submission for Emergency Use Authorization in Q3.
The company also plans to begin clinical trials for its respiratory syncytial virus test in Q3.
Cue Health said studies for the multiplex chlamydia and gonorrhea test are planned for the second half of 2022.
Cue Health posted an adjusted EPS loss of $(0.37), beating the consensus Wall Street estimate of $(0.46).
Cue Health exited the third quarter with $363.1 million in cash and cash equivalents and entered a $100 million secured revolving credit facility on June 30.
The company said Q3 revenues are expected to be $55-$60 million, compared to the consensus of $54.59 million.
Price Action: HLTH shares closed 16.8% higher at $5.70 during after-hours trading on Wednesday.