Fulgent Genetics (FLGT) Company Overview

Fulgent Genetics: High Insider Ownership Supports Asymmetric Upside

The mean of analysts' price targets for Fulgent Genetics (FLGT) points to a 31.1% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.

Fulgent Genetics (FLGT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

Fulgent Genetics, Inc. (NASDAQ:FLGT ) Q3 2024 Earnings Conference Call November 8, 2024 8:30 AM ET Company Participants Melanie Solomon - Investor Relations Ming Hsieh - Chairman, Chief Executive Officer Brandon Perthuis - Chief Commercial Officer Paul Kim - Chief Financial Officer Conference Call Participants Li Lu - UBS David Westenberg - Piper Sandler Andrew Cooper - Raymond James Operator Greetings and welcome to the Fulgent Genetics Q3 2024 Conference Call and Webcast. At this time, all participants are in a listen-only mode.

Fulgent Genetics, Inc. (FLGT) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of a loss of $0.19 per share. This compares to loss of $0.39 per share a year ago.

Fulgent Genetics (FLGT) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

Fulgent Genetics is transitioning from a diagnostic business to a fully integrated healthcare company, with a focus on oncology. Despite past reliance on COVID-19 test revenues, Fulgent's core business has grown significantly, with a strong balance sheet and zero debt. Trading below a conservative estimate of liquidation value, Fulgent presents a rare investment opportunity with potential for future growth and margin expansion as a bonus.

Fulgent Genetics' core revenue grew just 3% in H1 2024, with full-year guidance of $280 million implying a step-up to 11% growth in H2 and 7% for FY 2024. Growth in precision diagnostics (+35% in H1 2024) and gross margin expansion (+650 basis points) were the two bright spots in first half results. Headwinds in anatomic pathology and BioPharma services will soften starting H2 2024, paving the way for core growth re-acceleration and operating margin improvements.

Fulgent Genetics (FLGT) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.