Cancer Test Firm Guardant Health Posts Smaller Than Expected Q3 Loss, Lifts Annual Sales Outlook

Guardant Health Inc GH reported Q3 revenue of $143 million, up 22% Y/Y, beating the consensus of $137.37 million.

Precision oncology revenue grew 31%, driven predominantly by increased clinical testing volume and biopharma sample volume, which grew 35% and 11%, respectively.

The company reported 43,900 tests to clinical customers and 7,500 tests to biopharmaceutical customers in the third quarter of 2023, representing increases of 35% and 11%, respectively, over the third quarter of 2022.

Also Read: Guardant Health Has 'Underlying Business Strength' Says This Bullish Analyst.

Guardant Health reported a Q3 adjusted EPS loss of $(0.67), down from $(1.18) a year ago, beating the consensus of $(0.95).

Adjusted EBITDA loss was $79.7 million for the third quarter of 2023, as compared to a $112.8 million loss for the corresponding prior year period.

Guidance: Guardant Health raised 2023 revenue guidance to $553 million-$556 million compared to prior guidance of $545 million-$550 million and the consensus of $549.06 million.

Guardant Health expects FY23 operating expenses to be below FY22, driven by efficiency measures and continued leverage of its existing infrastructure, and free cash flow to be approximately negative $350 million in 2023.

Price Action: GH shares are down 5.70% at $26.16 on the last check Tuesday.