It also raised its 2020 revenue guidance to $112- $122 million, up from the previously estimated $100- $110 million.
“Our sample-to-answer test enables healthcare providers to determine if a patient has COVID-19 in under two hours and is a critical diagnostic solution for hospitals. I’m extremely proud of our team’s hard work throughout this crisis as we continue to work at maximum capacity to provide our ePlex SARS-CoV-2 test and Respiratory Pathogen panel” said CEO Scott Mendel.
GNMK announced that it received Emergency Use Authorization (EUA) for its ePlex SARS-CoV-2 test on March 19 and management noted that the COVID-19 test accounted for ~5% of ePlex revenue (~$1.7M) in 1Q20.
“With GNMK raising guidance by just the amount it beat in 1Q20, we believe that guidance leaves room for additional upside during 2020 and we reiterate our Buy rating” cheered Needham’s Michael Matson on the news.
“Gross margin was also up significantly Y/Y which we suspect helped with GNMK’s cash burn (which was already improving)” the analyst added. His buy rating comes with an $11 price target, indicating upside potential of over 140%.
Overall, the Street is slightly more cautious, with a Moderate Buy consensus and a $10 average analyst price target. Shares in GenMark are marginally down year-to-date at $4.50 (down 6%). (See GNMK’s stock analysis on TipRanks)
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