Veracyte, Inc. (NasdaqGM:VCYT) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.
The company is expected to report earnings of -$0.20/share on revenue of $23.524 million. The consensus earnings per share (EPS) of -$0.20/share is based on a poll of 6 analysts and represents a decline in eps of -875.0% over the same quarter last year, when the company reported earnings of -$0.02/share.
The revenue forecast of $23.524 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −24.0%. Last year the company reported $30.973 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.
What are your expectations from Veracyte, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 18.2%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 30, 2020||$30.18||$35.67||18.2%||Increase|
|May 6, 2020||$27.25||$27.21||−0.1%||Decline|
|February 25, 2020||$23.81||$23.26||−2.3%||Decline|
|October 22, 2019||$26.19||$22.10||−15.6%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −1.50, the model suggests that the company is likely an earnings manipulator. A value of −1.50 implies a 6.7% chance of earnings manipulation.
Fundamentals And Technical Analysis
Veracyte, Inc. is currently trading at $37.62/share, up 0.7% for the day. The company is trading at approximately 84.3% of its 52-week high of $44.64/share. The company’s stock price is up 5.5% since the last earnings report and down −8.4% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 52.46 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −68.82 and a forward P/E multiple of −50.55.
Veracyte, Inc.’s current share price also implies a price-to-book (P/B) multiple of 9.41. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$37.62|
|P/E Ratio (Fwd)||−50.5x|
|Total Debt / Total Capital||0.6%|
|Levered Free Cash Flow||-$16.136 million|
|EV / EBITDA||−72.1x|
Veracyte, Inc. is a mid-cap stock with a market capitalization of $2.129 billion and a total enterprise value of $1.994 billion. The company operates in the Healthcare sector and the Biotechnology industry.
Veracyte, Inc. operates as a genomic diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to identify patients with benign thyroid nodules among those with indeterminate cytopathology results in order to rule out unnecessary thyroid surgery; Percepta Genomic Sequencing Classifier for lung cancer; Envisia Genomic Classifier that help physicians to differentiate idiopathic pulmonary fibrosis from other interstitial lung diseases without the need for surgery; and Prosigna Breast Cancer Prognostic Gene Signature Assay test for assessing risk of distant recurrence. It sells its products through product specialists, account managers, and medical science specialists. Veracyte, Inc. has a strategic collaboration with Johnson & Johnson Innovation and the Lung Cancer Initiative at Johnson & Johnson to advance the development and commercialization of novel diagnostic tests to detect lung cancer at its earliest stages; a research collaboration with Loxo Oncology for the development of therapies for patients with genetically defined cancers; and a collaboration with Johnson & Johnson Services, Inc. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.