Shares of GenMark Diagnostics rose 6.6% in Tuesday’s pre-market buying and selling as the corporate introduced an 84% year-over-year leap in its preliminary fourth-quarter income to about $50 million.
The corporate stated that it anticipates 2020 income of $171 million, reflecting 95% progress. Notably, GenMark (GNMK) estimates ePlex platform income will rise 138% to $45 million in 4Q and 155% to $152 million in 2020.
The corporate enhanced its manufacturing capability by over 75% year-over-year with the completion of the primary of its two new manufacturing traces in 4Q 2020. It ended 2020 with an put in base of 792 ePlex analyzers positioned globally, reflecting a 50% acquire.
CEO Scott Mendel said, “Fourth quarter demand remained very robust, pushed by our ePlex RP2 and blood tradition ID panels that present broad pathogen protection and simplified workflow with arms on time of 1 minute or much less.”
“With multi-year contracts that embrace dedicated volumes, GenMark has created an everlasting and recurring income stream that gives visibility to driving continued prime line progress in 2021,” added Mendel. (See GNMK stock analysis on TipRanks)
In the meantime, the corporate requires 4Q gross margin of about 39% and full-year gross margin of 39%-40%. It anticipates asserting full-year outcomes and 2021 steering in late February.
In response to the replace, Needham analyst Michael Matson reiterated a Purchase score on GenMark with a worth goal of $22. The analyst believes that the corporate’s Respiratory Pathogen Panel (RP2) panel, which exams for over 20 viruses together with COVID-19, gained from pandemic-led demand in 4Q.
Matson feels that the corporate would proceed to profit from elevated testing volumes on account of a resurgence in COVID-19 instances and a slower-than-expected vaccine rollout.
Moreover, the analyst believes that elevated ePlex manufacturing capability ought to permit ePlex income to extend sequentially in 1Q21. Regardless of the robust ePlex placements and continued COVID-19 tailwind, the analyst thinks that top-line progress may sluggish this yr given very robust comparables.
Nonetheless, over the longer-term, Matson expects the ePlex methods positioned throughout the pandemic to drive testing volumes throughout GenMark’s broader testing choices.
Total, the Road’s Reasonable Purchase analyst consensus on GenMark is predicated on 2 Buys and 1 Maintain. Shares have risen a whopping 205% over the previous yr and the common price target of $22 signifies additional upside potential of 42.1% from present ranges.
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