Why Is DNA Synthesis Company Twist Bioscience Stock Trading Higher Today?

Twist Bioscience Corp TWST shares are trading higher after the company released first-quarter 2024 earnings and increased its FY24 revenue guidance.

The DNA synthesis company reported first-quarter sales of $71.5 million, up 32% Y/Y from $54.2 million a year ago, beating the consensus of $67.58 million and the management guidance of $67 million-$68 million.

The company reported an EPS loss of $(0.75), better than the consensus of $(0.78). For the quarter, the gross margin came in at 40.5%.

Total orders received for the first quarter of fiscal 2024 increased to $77.5 million compared to $64.7 million a year ago.

The company shipped products to 2,140 customers compared to approximately 2,060 customers a year ago. It shipped approximately 171,000 genes, up from 134,000 genes a year ago.

“We’re starting fiscal 2024 off strong with record revenue of $71.5 million for the first fiscal quarter, coming in above our projection, with a gross margin of 40.5%,” said Emily Leproust, CEO and co-founder. “In SynBio, after a limited launch of Express Genes in November, we expanded the offering to include midi and Maxi preps at Express speed and over time, we expect this offering will allow us to both expand our share of market and convert the Maker’s Market of researchers who make their own genes into DNA buyers.”

Guidance: Twist Bioscience expects fiscal year 2024 revenue of $288 million-$293 million, compared to the previous guidance of $285 million-$290 million and the consensus of $289.69 million.

• SynBio’s revenue is expected to be approximately $114 million-$117 million, compared to the previous estimate of $113 million-$116 million.
• NGS revenue of approximately $150 million-$152 million, compared to previous guidance of $147 million-$149 million.
• Biopharma revenue is estimated to be approximately $24 million compared to previous guidance of $25 million.
• The company increased gross margin guidance to 40%-41% compared to 39%-40% expected earlier.

Twist Bioscience expects second-quarter 2024 revenue of $70 million-$71 million, compared to a consensus of $70.09 million.

• The company forecasts SynBio revenue of approximately $28.5 million, NGS revenue of approximately $37 million-$38 million, and Biopharma revenue of approximately $4.5 million for the second quarter of 2024.
• Twist Bioscience sees second-quarter gross margin of 39%

Price Action: TWST shares are up 8.63% at $36.13 on the last check Friday.

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