I think there are still some followers on here of $GH…
Earnings looked good to my eyes, but they got dinged AH, attributed to weak guidance or something.
– Revenue of $62.9 million for the fourth quarter and $214.4 million for the full year of 2019
– 91% and 137% increases, respectively,over the corresponding periods of 2018
– Adopted ASC 606 effective January 1, 2019
– Full year 2020 revenue to be in the range of $275.0 million to $285.0 million, representing 31% growth over the full year 2019 at the midpoint of the range. Net loss is expected to be in the range of $155.0 million to $160.0 million in 2020.
~Zeke
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Sorry to reply to my own comment…but one final note… they beat their own guidance by $82 million last year and raised every quarter. Listening to the conference call and the follow up questions, they definitely sound conservative with a long right tail of upside.
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I was in the process of going through their data too. I like what I see.
OpEx rose significantly, but clearly less than revenue. Gross margin rising too (from 52% to 67%). Revenue growth for 2020 estimated in the 30% range. Gtiven their past performance, 40-45% seems very realistic. And their pipeline still looks promising.
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I assume guidance is done under the condition that FDA approval is still pending (FDA decision due very soon…my guess before May 1)and thus expanded clinical use of assay can’t be put in the numbers yet. Once FDA approval is obtained then prior guidance is out the window, assuming clinical orders for the assay go way up after approval (why wouldn’t they?)… Anyone invested in this company has to believe strongly that wider adoption WILL occur once FDA approval is obtained. I think the single event that will cause this to pop up is the FDA approval, then at that point it will remain up as long as all signs point to increased clinical orders for the assay…
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I have increase my position in GH 5 times since 2018.
My most recent purchase was 1/2019
My avg. return for GH is 83% after this drop.
GH has been a solid investment thus far.
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