A month has gone by since the last earnings report for Genomic Health, Inc. GHDX. Shares have added about 7.1% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

First-Quarter Highlights

Genomic Health, Inc. (GHDX) reported first-quarter 2017 loss per share of $0.07, reflecting an improvement from the year-ago quarter’s loss figure of $0.19. The quarter’s number is however wider than the Zacks Consensus Estimate of a loss of $0.06.

Net income in the reported quarter was $1.4 million against net loss of $2.7 million in the year-ago quarter.

Revenues in Detail

Total revenue in the quarter rose 3.8% year over year to $84.0 million but missed the Zacks Consensus Estimate of $86 million. Growth across the U.S. and international markets drove the top line.

Geographically, first-quarter product revenues in the U.S. improved 0.1% to $70.6 million. The U.S. product revenue growth was fueled by invasive breast cancer revenue growth of 1.1% as well as 26.9% contribution from Prostate test revenues. International product revenues were $13.4 million in the reported quarter, up 29%, and 33% on a CER basis.

During the quarter, the company delivered more than 31,580 Oncotype DX test results, up 7% year over year.

Margin Trend

In the quarter under review, Genomic Health’s gross margin expanded 369 basis points (bps) year over year to 83.7%. Apart from significant top-line growth, the improvement in gross margin was a result of a 15.4% decline in cost of product revenues to $13.6 million.

Genomic Health also witnessed a 0.5% fall in operating expenses to $73.1 million owing to a 9.1% decrease in general and administrative expenses to $16.8 million and a 4.7% fall in research and development expenses to $14.8 million. However, selling and marketing expenses rose 5.1% to $41.5 million.

In the reported quarter, Genomic Health recorded an operating loss of $2.8 million, wider than an operating loss of $0.8 million incurred in the prior-year quarter.

Financial Update

Genomic Health exited first-quarter 2017 with cash and cash equivalents and short-term marketable securities (including a corporate equity investment) of $94.4 million, reflecting a slight improvement from $87.7 million recorded at the end of Dec 31, 2016.