Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, saw its stock soar by a remarkable 31.2% in pre-market trading on November 7, 2024. This surge came on the heels of the company's stellar third-quarter 2024 financial results and upbeat guidance for the full year.
For the quarter ended September 30, 2024, Guardant Health reported record revenue of $191.5 million, a staggering 34% increase compared to the same period last year. This figure surpassed Wall Street's consensus estimate of $170.6 million, reflecting the robust demand for the company's liquid biopsy tests.
One of the key highlights was the company achieving an average selling price (ASP) of over $3,000 for its flagship Guardant360 test, meeting its long-term target four years ahead of schedule. This achievement was driven by higher Medicare reimbursement rates, which increased to $5,000 effective January 1, 2024, and improved reimbursement from Medicare Advantage and commercial payers.
Buoyed by its strong performance, Guardant Health raised its full-year 2024 revenue guidance to a range of $720 million to $725 million, representing growth of 28% to 29% compared to the previous year. The company also improved its free cash flow outlook for 2024, projecting it to be in the range of $(265) million to $(275) million, an improvement of $70 million to $80 million compared to 2023.
In addition to its financial achievements, Guardant Health made significant progress on strategic initiatives, including the successful launch of its Shield cancer screening test and receiving a favorable Medicare pricing of $920 for the test. While facing challenges like slower international growth and pending reimbursement for certain tests, the overall tone from management remained positive, citing strong momentum and growth prospects.
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