Why NanoString Shares Are Gaining Today

NanoString Technologies, Inc. NSTG released a preliminary update of the second quarter, where revenues are expected to be over $44 million, representing year-on-year growth of approximately 37%.

The company plans to release full operating results for the second quarter of 2023 after the close of trading on August 3, 2023. 

Quarterly revenues are expected to be above the upper end of the guidance range of $40 million-$42 million and the consensus revenue of $41 million.

"We are excited to report that our teams delivered strong preliminary revenue results for the second quarter, with preliminary results exceeding consensus estimates and the upper end of our guidance ranges," said Brad Gray, President and CEO of NanoString. 

NanoString captured new orders for spatial biology instruments at a rate exceeding the Q1 pace and retained more than $30 million in the CosMx instrument order backlog.

"During Q2, a competitor launched a campaign using a ruling in the Munich regional court to try to frighten customers to cancel orders for our CosMx Spatial Molecular Imager, even though the preliminary ruling was limited to Germany. Despite this challenge, through the strength of our technology and the hard work of our team, we fulfilled or retained approximately 97% of our cumulative CosMx instrument orders and captured orders for new CosMx instruments at a faster pace than in Q1," Gray added. 

Spatial biology revenue is expected to be over $23 million, at approximately the midpoint of its guidance range of $23 million-$24 million.

nCounter revenue is expected to be approximately $21 million, above the upper end of its guidance range of $17 million-$18 million.

NanoString recorded nCounter consumables revenue growth of approximately 8% year-over-year and roughly $46,000 of annualized pull-through.

Outlook: Management reiterated its full-year revenue guidance of $175 million-185 million, representing annual revenue growth of 41% at the midpoint of the guidance range. The consensus stands at $179.13 million.

Price Action: NSTG shares are trading higher by 8.65% to $4.02 in the premarket session on the last check Monday.