CAREDX Reports Strong Earnings for Q2 FY2023
August 11, 2023
☀️Earnings Overview
On June 30 2023, CAREDX ($NASDAQ:CDNA) released their earnings report for the second quarter of FY2023, which revealed total revenue of USD 70.3 million, a decrease of 12.8% compared to the same quarter in the previous year. Additionally, net income was reported to be USD -25.0 million, a larger loss than the -21.7 million in the same period in the prior year.
Market Price
On Tuesday, CAREDX reported strong earnings for the second quarter of its fiscal year 2023. The stock opened at $10.8 and closed at $11.0, a 2.2% increase from the previous closing price of 10.8. The strong earning report was attributed mainly to increased demand for CAREDX’s products and services, as well as an expanded customer base. The company has seen a steady increase in revenue over the past year, and the latest report indicates that this trend is likely to continue in the future. Moreover, the report highlighted that CAREDX has been able to cut costs while increasing its product offerings.
The company has also invested heavily in research and development, with the goal of introducing new products and services that will meet customer needs. As such, investors have responded positively to the news, with the stock rising by 2.2%. Overall, CAREDX’s strong earnings report for the second quarter of its fiscal year 2023 has been met with great enthusiasm from investors. With increased demand for their products and services and a focus on keeping costs down, the company is in a good position to continue its positive growth trajectory in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Caredx. More…
| Total Revenues | Net Income | Net Margin |
| 309.31 | -83.97 | -27.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caredx. More…
| Operations | Investing | Financing |
| 0.28 | -72.68 | -6.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Caredx. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 514.82 | 109.61 | 7.53 |
Key Ratios Snapshot
Some of the financial key ratios for Caredx are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.3% | – | -28.3% |
| FCF Margin | ROE | ROA |
| -4.5% | -13.3% | -10.6% |
Analysis
GoodWhale’s analysis of CAREDX reveals that it has an intermediate health score of 5/10 with regard to its cashflows and debt, suggesting that it is likely to be able to sustain future operations during times of crisis. By taking into consideration its position on the Star Chart, we can conclude that CAREDX is a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. CAREDX is strong in terms of its assets and growth potential, but weak in dividend and profitability. These characteristics make it an attractive investment for those who are looking for a long-term, relatively safe investment. Therefore, those investors who are seeking a low-risk, moderate-return investment may find CAREDX to be a suitable option. More…
Peers
Its competitors are OpGen Inc, Stella Diagnostics Inc, and LungLife AI Inc.
– OpGen Inc ($NASDAQ:OPGN)
OpGen Inc is a biotechnology company that develops and commercializes genomic solutions for the healthcare industry. The company’s products and services include DNA sequencing, bioinformatics, and disease management. OpGen has a market cap of 9.75M as of 2022 and a ROE of -42.63%. The company’s products and services are used by healthcare providers to diagnose and treat diseases.
– Stella Diagnostics Inc ($OTCPK:SLDX)
LungLife AI Inc is a Canadian artificial intelligence company that uses machine learning to improve lung cancer diagnosis and treatment. The company has a market cap of 32.49M as of 2022 and a Return on Equity of -24.88%. LungLife AI’s technology is based on a deep learning algorithm that can identify patterns in CT scans that are associated with lung cancer. The company is working on a number of applications for its technology, including a lung cancer screening tool and a treatment planning tool.
Summary
CAREDX is a company worth considering for investment, despite their second quarter FY2023 results. Total revenue was reported at USD 70.3 million, a 12.8% decrease year-over-year, and net income was -USD 25.0 million compared to a loss of -21.7 million in the previous year. However, CAREDX has made significant investments in R&D and is expected to launch a number of new products and services in the coming quarters that could help the company attain profitability. Investors should monitor the company’s performance closely and consider investing if the company continues to show signs of growth.
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