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Veracyte Stock Falls Despite Q4 Earnings and Revenue Beat

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Veracyte VCYT delivered fourth-quarter 2024 earnings of 36 cents per share, which marked a stupendous improvement of 71.4% from the year-ago period’s figure of 21 cents. The bottom line beat the Zacks Consensus Estimate by 24.1%.

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The company-adjusted earnings per share (EPS) were 6 cents compared to the year-ago period’s loss of 39 cents per share.

Full-year 2024 EPS of $1.19 increased 105.2% from the prior-year figure of 58 cents. The figure surpassed the Zacks Consensus Estimate by 6.2%.

Following the earnings announcement, VCYT’s share price lost 7.2% at after-market trading yesterday.

VCYT’S Revenues

Revenues increased 20.8% year over year to $118.6 million, which outpaced the Zacks Consensus Estimate by 1.6%.

The company reported full-year 2024 revenues of $445.8 million, which increased 23.5% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.4%.

VCYT’s Q4 Segmental Details

Testing revenues totaled $112.2 million, up 24% year over year. This rise was mainly due to Decipher and Afirma revenue growth of 44% and 4%, respectively. Testing volume improved 25% year over year to 39,107 tests.

Product revenues fell 18% year over year to $3.0 million in the fourth quarter. Volume was approximately 2,200 tests, down 18% year over year, as the company continued to face supply and manufacturing challenges.

Biopharmaceutical and other revenues of $13.2 million reflected a 30% decrease from the prior-year quarter’s figure.

Margins

The total cost of revenues (product, testing, biopharmaceutical and other) was $39.9 million, up 19.4% year over year.

The gross profit rose 21.6% to $78.7 million. The gross margin expanded 41 basis points (bps) to 66.4%.

Selling and marketing expenses fell 1.7% to $24.8 million, while general and administrative expenses increased 13.1% to $26.9 million. R&D expenses totaled $19.3 million, up 3.3% year over year. The company delivered an operating profit of $7.7 million compared to a loss of $2.9 million in the year-ago period.

VCYT’s Cash, Capital Structure and Solvency

Veracyte exited 2024 with cash and cash equivalents of $239.1 million compared with $216.4 million at the end of 2023.

The cumulative net cash outflow from operating activities at the end of the reported quarter was $75.1 million compared with $44.2 million a year ago.

Guidance

Veracyte provided testing revenue and total company-adjusted EBITDA margin guidance for 2025.

 

Veracyte, Inc. Price, Consensus and EPS Surprise

Veracyte, Inc. Price, Consensus and EPS Surprise
Veracyte, Inc. Price, Consensus and EPS Surprise

Veracyte, Inc. price-consensus-eps-surprise-chart | Veracyte, Inc. Quote