Core Insights - CareDx (CDNA) shares increased by 6.1% to close at $25.07, attributed to higher trading volume compared to typical sessions, with a 3.4% gain over the past four weeks [1] Financial Performance - CareDx is expected to report preliminary fourth-quarter 2024 revenues between $85 million and $86 million, reflecting a 30% year-over-year increase, surpassing the Zacks Consensus Estimate of 25.2% growth [2] - Testing service revenue is projected to rise nearly 35% year-over-year, driven by a 14% increase in volumes [2] - The company anticipates quarterly earnings of $0.07 per share, representing a year-over-year increase of 141.2%, with revenues expected to reach $82.12 million, up 25.2% from the previous year [3] Earnings Estimates and Stock Performance - The consensus EPS estimate for CareDx has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - CareDx currently holds a Zacks Rank of 3 (Hold), while another company in the medical services industry, Avantor, Inc. (AVTR), has a Zacks Rank of 4 (Sell) [4]

Group 1 - The article discusses the process of identifying potential investment opportunities for the "Bioreactor" growth portfolio within the Compounding Healthcare Investing Group [1] - The focus is on innovative companies that are developing breakthrough therapies and pharmaceuticals, particularly those with catalysts for potential acquisitions [3] - The investing group offers several model healthcare portfolios, a weekly newsletter, a daily watchlist, and a platform for dialogue and questions among members [4] Group 2 - The author has a beneficial long position in the shares of TMO and BIO, indicating a personal investment interest in these companies [1] - The article encourages readers to explore the subscription marketplace service, Compounding Healthcare, for more insights into investment methods and opportunities [2]

Group 1 - CareDx (CDNA) is currently outperforming its Medical sector peers with a year-to-date return of approximately 113.7%, compared to the sector average of 2.1% [4] - The Zacks Rank for CareDx is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 16.7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - CareDx is part of the Medical Services industry, which has an average year-to-date loss of 5.4%, further highlighting CareDx's strong performance relative to its industry [5] Group 2 - Clover Health Investments, Corp. (CLOV) has also shown strong performance with a year-to-date return of 260.3%, and it holds a Zacks Rank of 2 (Buy) with a 7.7% increase in the consensus EPS estimate over the past three months [4][5] - The Medical sector consists of 1025 individual stocks and currently holds a Zacks Sector Rank of 3, indicating a moderate strength among its groups [2] - The Medical Services industry, which includes CareDx, ranks 138 in the Zacks Industry Rank, while the Medical Info Systems industry, which includes Clover Health, ranks 34 [5][6]

Core Viewpoint - CareDx (CDNA) shows potential for significant upside, with a mean price target of $34.67 indicating a 49.9% increase from the current price of $23.13 [1] Price Targets - The average price target consists of six estimates ranging from a low of $28 to a high of $40, with a standard deviation of $4.97, suggesting a consensus among analysts [2] - The lowest estimate indicates a 21.1% increase, while the highest suggests a 72.9% upside [2] Analyst Sentiment - Analysts exhibit strong agreement on CDNA's ability to report better earnings than previously predicted, which supports the expectation of stock upside [4] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 15.7%, with three estimates moving higher and no negative revisions [10] Zacks Rank - CDNA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] Earnings Estimate Revisions - There is a strong correlation between trends in earnings estimate revisions and near-term stock price movements, suggesting that the positive revisions could lead to stock price increases [9]

CareDx (CDNA) has been on a downward spiral lately with significant selling pressure. After declining 12% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is over ...

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. CareDx (CDNA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.CareDx is a member of the Medical sector. This group includes 1024 individual stocks and c ...

Financial Data and Key Metrics Changes - CareDx reported revenue of $82.9 million for Q3 2024, representing a 23% year-over-year growth [9][36] - Adjusted EBITDA was positive at $6.9 million, an improvement from a loss of $10.9 million in the same quarter last year [10][38] - The company ended the quarter with $241 million in cash and cash equivalents, with no debt [10][38] Business Line Data and Key Metrics Changes - Testing Services revenue was $60.8 million, up 27% year-over-year, with approximately 44,600 tests delivered, a 16% increase from the prior year [11][36] - Patient and Digital Solutions revenue was approximately $12 million, reflecting a 20% year-over-year growth [20][37] - Lab Products revenue reached $10.2 million, marking a 7% year-over-year growth [23][37] Market Data and Key Metrics Changes - The company added four million commercial-covered lives in Q3, bringing the total to approximately 31 million covered lives nationwide [19][37] - The Centers for Medicare and Medicaid Services reaffirmed coverage for solid organ transplant monitoring, which is expected to positively impact testing volumes [14][19] Company Strategy and Development Direction - CareDx is executing a strategy to engage transplant centers with a synergistic portfolio of testing, digital, and lab products, aiming for long-term profitable growth [12][29] - The company has reorganized its go-to-market team and is expanding its sales and marketing workforce to capture growth opportunities [13][27] - A three-year growth strategy targets $500 million in revenue by 2027, with a focus on innovation in diagnostics [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term profitable growth, citing strong execution and a solid balance sheet [10][51] - The company anticipates a gradual return of surveillance testing protocols at transplant centers over the next two to three quarters [14][62] - Management raised revenue guidance for fiscal year 2024 to $327 million to $331 million, reflecting a growth rate of approximately 17% year-over-year at the midpoint [32][46] Other Important Information - The Department of Justice closed its investigation into CareDx with no findings of wrongdoing, following a similar decision by the SEC [30] - A competitor has dropped patent infringement claims against CareDx, allowing the company to focus on its core business [31] Q&A Session Summary Question: Insights on Q4 guidance and trends - Management indicated that Q4 revenue is expected to be in line with Q3, primarily due to prior-period revenue items [54][56] Question: Surveillance testing recovery timeline - Management noted a modest shift in testing mix towards surveillance and anticipates a gradual return to pre-pandemic levels over the next two to three quarters [62] Question: Capital allocation strategy - The focus remains on growth and profitable growth long-term, with share buybacks considered after reinvestment in the core business [63] Question: Expansion of commercial payer lives in 2025 - Management expects significant growth in covered lives in 2025, particularly for AlloSure Heart and AlloSure Kidney [70] Question: Trends in transplant procedures for 2025 - Management anticipates mid-single-digit growth in the transplant market, with no immediate catalysts for increased procedures [80][81] Question: Framework for surveillance opportunity - The focus is on implementing surveillance testing protocols for newly transplanted patients, with potential for increased demand as new therapeutics emerge [85]

Financial Performance - Total revenue for Q3 2024 was $82.9 million, a 23% increase year-over-year[9] - Testing Services volume reached 44,600 tests, a 16% increase year-over-year[9] - The company achieved a GAAP net loss of $7.4 million, a non-GAAP net income of $8.0 million, and a positive adjusted EBITDA of $6.9 million[9] - The company's cash, cash equivalents, and marketable securities stand at approximately $241 million with no debt[9] - The company raised its annual revenue guidance to $327 to $331 million and adjusted EBITDA to a gain of $18 to $22 million[10] Business Updates - CMS reaffirmed Medicare coverage for AlloSure® and AlloMap® Testing[10] - The DOJ concluded its investigation into CareDx with no finding of wrongdoing[11] - QTYPE now features single bead antigen resolution for rapid deceased donor typing[12] - The company launched an Early Access Program with Dovetail Genomics, introducing innovative haplotyping technology to HLA labs[11] Future Targets - The company is targeting $500 million in revenue by 2027[18] - The company is targeting a 20% adjusted EBITDA by 2027[18]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-365 ...

GROWTH & CareDx 2024 INVESTOR DA OCTOBER 15, 2024 E CareDx UNLOCKING GROWTH SAFE HARBOR STATEMENT These slides, and the accompanying oral presentation, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, ar 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation, including statements regardi future financial position of CareDx", Inc. (together with its subsidiari ...