Genoptix - Market Likes What It Hears
Genoptix (GXDX) only came in line on earnings but was bidding up 10% after hours yesterday. It
appears to be due to raising guidance for full year 2008. They had a
confusing report with an accounting change and their 2009 guidance includes a 45% tax rate - wow; time to get some of those accountants that work at larger US companies who don't pay almost any taxes ... err, ummm I mean pay a punitive 35% tax rate. (
Oct 15: Myth - US Corporations Have Among the Highest Tax Rates in the World)
For the quarter analysts expectations were
$28.5M revenue and $0.28 EPS - this company should not be super exciting but slow, steady and with inelastic demand for services. Perfect for this market.
- Genoptix, Inc. (Nasdaq: GXDX - News), a specialized laboratory services provider, today reported revenues of $32.1 million for the third quarter of 2008, which includes a $2.5 million benefit from changes in accounting estimates relating to prior periods. This compares to revenues of $16.2 million for the same period in 2007, including $612 thousand from changes in prior period estimates. (So I'll call it a $29.6M quarter)
- Our expanded sales efforts have once again resulted in our diagnosing a greater number of cases, which increased to nearly 9,900 since the beginning of July, our seventeenth consecutive quarter of solid growth in revenues and the number of patients served.
- The Company also reported GAAP net income of $15.4 million for the third quarter ended September 30, 2008 and $26.0 million for the first nine months of 2008, compared to GAAP net income of $3.6 million and $8.7 million for the three and nine months ended September 30, 2007. Diluted earnings per share, or EPS, for the third quarter of 2008 was $0.87 based on 17.8 million weighted average common shares outstanding, including a $0.35 net benefit resulting primarily from the Company's recognition of deferred tax assets as it transitions to a fully taxed rate. The Company completed its IPO on November 2, 2007.
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