AUSTIN, Texas - Natera, Inc. (NASDAQ:NTRA) saw its shares jump 9.5% after the genetic testing company reported better-than-expected third quarter results and raised its full-year guidance.
The company posted a loss of $0.26 per share for Q3, beating analyst estimates of a $0.57 loss. Revenue surged 63.9% YoY to $439.8 million, significantly above the consensus forecast of $361.43 million.
Natera processed approximately 775,800 tests in Q3, up 23.9% from 626,000 tests in the same period last year. Oncology test volumes saw particularly strong growth, increasing 54.4% YoY to 137,100 tests.
"Our strong performance in the third quarter reflects our unwavering dedication to the patients we serve and the passion of our employees in each of our business areas," said Steve Chapman, CEO of Natera.
The company raised its 2024 revenue guidance to $1.61-$1.64 billion, up from its previous outlook and above analyst expectations of $1.52 billion. Natera also now expects to generate positive cash flow of $50-$75 million for the full year.
Gross margin expanded significantly to 61.8% in Q3, compared to 45.1% in the prior year period, driven by higher revenues and continued progress in reducing costs.
With its strong results and optimistic outlook, Natera appears well-positioned to maintain its growth trajectory in the genetic testing market.
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