CareDx (CDNA) reported stronger-than-expected Q2 results, topping both earnings and revenue estimates. Results were driven by robust performance across all segments. Shares of the precision-medicine company have gained 150% over the past year.
Adjusted earnings of $0.11 per share almost trebled year-over-year and beat analysts’ expectations of $0.02 per share. The company reported earnings of $0.04 per share in the prior-year period.
Additionally, revenues jumped 77% year-over-year to $74.2 million and exceeded consensus estimates of $67.55 million. The increase in revenues reflected a surge in testing services revenue, which almost doubled to $64.9 million. Product revenues also more than doubled to $6.9 million. (See CDNA stock charts on TipRanks)
CareDx CEO Reg Seeto commented, “We have become the transplant partner of choice by bringing industry leading service offerings with AlloSure and AlloMap to the clinic, as well as leading innovation with our multimodal platforms (HeartCare, KidneyCare), while we remain focused on the patient journey.”
Based on strong Q2 results, the company raised its revenues guidance for full-year 2021. Revenues are forecast to be in the range of $280 – $290 million, versus the consensus estimate of $278.4 million. Earlier, revenues were projected to be in the range of $270 – 280 million.
Following the upbeat Q2 results, Piper Sandler analyst Steven Mah increased the price target from $100 to $110 (30.9% upside potential) and reiterated a Buy rating on the stock.
Mah remains impressed with the company’s commitment and increased exposure to transplants in other solid organs, as well as the development of new tests like AlloHeme, which are aimed at stem cell transplant relapse.
Overall, the stock has a Strong Buy consensus rating, based on 5 Buys and 1 Hold. The average CareDx price target of $107.40 implies 27.9% upside potential from current levels.
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