NASDAQ$FLGT

Fulgent Genetics Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Fulgent Genetics' Q3 2020 financial results were released, showing record revenue and earnings.

Fulgent Genetics reported record third-quarter revenue of $101.7 million, an 883% increase year-over-year. GAAP earnings were $46.6 million, or $1.98 per share, and non-GAAP earnings were $49.0 million, or $2.08 per share. The company raised its full-year revenue guidance to $235 million.

  • Record revenue of $101.7 million, growing more than 880% year-over-year.
  • Record billable tests delivered approximately 1.04 million, growing more than 4,800% year-over-year.
  • Gross Margin improved approximately 19 percentage points sequentially and approximately 12 percentage points year-over-year.
  • Non-COVID Revenue grew 57% sequentially.

Headline financials

Total Revenue

$102M

Previous: $10.3M+883.0%
EPS (adj)

$2.08

Previous: $0.14+1385.7%
Capital Expenditures

-$11.3M

Previous: -$721K-1472.3%
Free Cash Flow

$35.3M

Previous: $741K+4664.1%
Net Income

$46.6M

Previous: $1.46M+3090.0%
Operating Income

$63.5M

Previous: $1.51M+4109.6%
Gross Profit

$75.5M

Previous: $6.46M+1067.7%
Cash & Equivalents

$53M

No prior period
Total Assets

$247M

No prior period

Revenue & EPS history

Fulgent · Revenue · Quarterly

$102M

Q3 2020+883%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Fulgent · $66M total across 1 segment · Q3 2023

  • Core Revenue
    $66M+17.9%

Forward guidance

The company expects to generate revenue of at least $110 million for the fourth quarter of 2020 and now expects revenue of $235 million for the full year 2020.

Tailwinds

  • Company expects continued momentum across its business in the fourth quarter.
  • Company is pleased to be raising its revenue guidance for the full year.
  • Company's recent momentum is a result of the investments it has made in its business and technology platform over many years.
  • Company expects to continue investing in its platform to expand its capabilities.
  • Company believes the relationships it has built during this pandemic from both a customer and reimbursement standpoint, along with the expansion of its commercial capabilities which includes its at-home platform, Picture Genetics, will help drive our business in the years ahead.

Headwinds

  • The ongoing impacts of the COVID-19 pandemic, including the preventive public health measures that may continue to impact demand for its tests and the pandemic’s effects on the global supply chain
  • The market potential for, and the rate and degree of market adoption of, the company’s tests, including its newly-developed tests for COVID-19 and genetic testing generally
  • The company’s ability to capture a sizable share of the developing market for genetic and COVID-19 testing and to compete successfully in these markets, including its ability to continue to develop new tests that are attractive to its various customer markets, its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology
  • The company’s ability to maintain the low internal costs of its business model, particularly as the company makes investments across its business
  • The company’s ability to maintain an acceptable margin on sales of its tests, particularly in light of increasing competitive pressures and other factors that may continue to reduce the company’s sale prices for and margins on its tests

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-2.5%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.3%

Avg return

30 days after

37%

15 / 41 earnings

Positive

+38.3%

Q3 2019

Best reaction

-38.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.0%-1.8%+19.2%
Q4 2025-38.1%-43.5%-37.0%
Q3 2025+18.3%+30.3%+24.6%
Q1 2025+18.7%+8.1%+20.1%
Q4 2024-1.5%+6.1%+8.7%
Q3 2024-9.0%-16.3%-8.8%
Q2 2024+0.4%-0.3%-4.3%
Q1 2024+1.2%+0.1%-2.8%
Q4 2023-11.5%-6.8%-14.8%
Q3 2023+14.0%+11.1%+15.5%
Q2 2023-15.4%-18.1%-18.6%
Q1 2023+16.1%+23.4%+41.4%
Q4 2022-2.5%+3.3%-9.1%
Q3 2022-8.6%+3.3%-2.4%
Q2 2022-4.9%-20.4%-33.9%
Q1 2022+4.4%-4.1%-1.6%
Q4 2021-1.3%+0.1%-2.1%
Q3 2021-1.1%+10.5%+4.3%
Q2 2021-8.0%-10.9%-15.2%
Q1 2021+3.9%-2.5%+2.6%
Q4 2020-0.5%+18.1%+8.3%
Q3 2020-17.0%+6.9%+20.0%
Q2 2020+27.2%+26.1%+13.2%
Q1 2020-21.0%+3.9%+10.3%
Q4 2019-32.3%-42.6%-29.1%
Q3 2019+38.3%+68.1%+26.0%
Q2 2019+31.9%+45.4%+46.7%
Q1 2019-15.8%-16.5%-11.3%
Q4 2018+9.6%+7.6%+29.3%
Q3 2018+6.9%+12.3%+2.8%
Q2 2018-0.8%-4.9%-17.9%
Q1 2018-0.3%-2.3%-4.9%
Q4 2017-9.1%-20.9%-15.6%
Q3 2017+0.4%-4.0%+0.9%
Q2 2017-15.6%-9.9%-16.4%
Q1 2016-31.1%-30.0%-53.4%
Q1 2017-33.1%-29.4%-53.9%
Q2 2016-3.8%-9.0%-7.5%
Q4 2016+1.1%-4.2%-2.9%
Q4 2015-1.6%-1.7%+8.2%
Q3 2016-3.1%-4.1%+9.5%
Q3 2015
Q2 2015
Q1 2015

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