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Benzinga
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What's Going On With Cancer Diagnostic Firm Guardant Health On Friday?

1. Q4 EPS loss at 62¢ beat the 74¢ consensus. Loss improved from 64¢ last year. 2. Revenue hit $201.8M, a 30% increase YoY. Sales outpaced the $192.14M consensus. 3. Test volumes surged: 57,300 oncology and 11,050 biopharma tests. Growth driven by increased clinical activity. 4. Medicare reimbursement for Guardant360 LDT improved to $5,000. Guidance for FY2025 revenue aligns with consensus. 5. Analysts upgraded GH with raised price targets from $39 to $59. Investors remain cautious amid a 10.60% stock drop.

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FAQ

Why Bullish?

The earnings beat, revenue growth, and improved reimbursement suggest stronger fundamentals. Historical quarters with similar performance drove upward re-ratings despite short-term price dips.

How important is it?

The Q4 beat and positive analyst revisions indicate significant potential impact on GH’s valuation. Market momentum may recover as investor confidence returns based on ongoing strategic improvements.

Why Long Term?

Structural improvements in test volume and reimbursement bode well for future growth, similar to past cycles in biotech earnings improvements.

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