Veracyte (VCYT) has consistently gained from the strength of its Afirma and Decipher tests. With Decipher expanding into metastatic and localized disease areas, the growth is likely to continue in the coming years. Simultaneously, the company continues to progress in its strategic long-term growth drivers. Meanwhile, declining biopharmaceutical revenues and macroeconomic impacts raise concerns for its operations. In the past year, this Zacks Rank #2 (Buy) stock has demonstrated impressive performance, outpe ...

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After reaching an important support level, Veracyte (VCYT) could be a good stock pick from a technical perspective. VCYT surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving ...

It has been about a month since the last earnings report for Veracyte (VCYT) . Shares have added about 0.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Veracyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns o ...

Veracyte (VCYT) closed the last trading session at $33.69, gaining 0.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $45.50 indicates a 35.1% upside potential.The average comprises 10 short-term price targets ranging from a low of $29 to a high of $55, with a standard deviation of $7.60. While the lowest estimate indicates a decline of 13.9% from the current price level, the mos ...

Core Viewpoint - Veracyte (VCYT) has demonstrated strong performance with a 45.6% increase in share price over the past year, significantly outperforming the industry and S&P 500, driven by the success of its Afirma and Decipher tests [1][3]. Company Overview - Veracyte, based in San Francisco, CA, specializes in advanced genomic tests that enhance diagnostic and treatment decisions for cancer and other diseases, aiming to reduce unnecessary procedures and expedite treatment [2]. Key Growth Catalysts - The growth in Veracyte's share price is attributed to the strong performance of Afirma and Decipher tests, with Afirma test volumes increasing by 12% in 2024 and 8% year-over-year in Q4, driven by deeper market penetration and new customer acquisition [3] - Decipher has been recognized in the updated 2025 NCCN guidelines as a leading gene expression test for personalized prostate cancer treatment, achieving a remarkable 45% year-over-year volume growth in Q4 [4] - Veracyte is expanding its testing capabilities to cover the entire prostate cancer risk spectrum, with plans to launch into this expanded market in the first half of 2025 [5]. Financial Estimates - The Zacks Consensus Estimate for Veracyte's 2025 earnings per share (EPS) is $1.00, with projected revenue growth of 9.5% to $486.2 million in 2025 and further growth to $533.7 million in 2026, an increase of 9.3% [9].

Revenue and Reimbursement - A significant portion of the company's revenue is derived from a limited number of third-party payers, with fluctuations expected as reimbursement policies change [170]. - Medicare reimbursement rates for the Afirma GSC classifier are set at $3,600, while Decipher Prostate has a reimbursement rate of $3,873, and Decipher Bladder is priced at $3,469.83 [175]. - The company anticipates that achieving coverage and reimbursement for its tests will take several years, with ongoing payer consolidation creating uncertainty [180]. - Changes in Medicare payment rates could lead to decreased reimbursement from commercial payers, impacting overall revenue [171]. - Increased patient cost-sharing and economic pressures may lead to reduced demand for the company's tests [186]. - The company is focused on increasing adoption and reimbursement for its existing tests, including Decipher Prostate, Afirma, and Decipher Bladder [180]. - Future healthcare initiatives may lead to decreased revenue and lower reimbursement rates for tests, adversely affecting the company's financial condition [213]. - Clinical laboratory services are currently excluded from Medicare Part B co-insurance and co-payment as preventative services, but changes could increase costs and reduce collections [214]. - The Inflation Reduction Act of 2022 may impose government-established pricing and rebates on certain products, affecting revenue [216]. Regulatory Compliance and Challenges - Compliance with federal and state licensing requirements is essential; failure to maintain these could disrupt testing services and revenue [187]. - The company’s future growth depends on successfully adapting its diagnostic tests as IVDs and securing necessary regulatory approvals for international markets [196]. - The company has experienced quality, regulatory, or manufacturing irregularities, particularly at its Marseille facility, which may affect its operational capabilities [194]. - The FDA's final rule under 21 CFR Part 809 will phase out enforcement discretion for laboratory developed tests (LDTs) over four years, potentially increasing regulatory requirements [227]. - Non-compliance with FDA regulations could result in enforcement actions, adversely affecting the company's financial condition and operations [233]. - The process of obtaining FDA marketing authorization, including PMA and 510(k) clearance, is lengthy, costly, and uncertain, potentially taking several months to years [237]. - The company is subject to ongoing regulatory requirements, including compliance with ISO 13485 and FDA regulations, which could significantly impact operations if not adhered to [253]. - Recent FDA rule changes aim to align QSR with ISO 13485:2016, potentially increasing compliance costs and operational risks [254]. - The company may incur significant expenditures to comply with stricter EU regulations, impacting its ability to market products in the EU and EEA [243]. - The company is dependent on third-party technology providers to maintain compliance with regulatory requirements, which poses risks to obtaining necessary clearances [252]. Competition and Market Position - The company faces competition in genomic testing from firms like Myriad Genetics and MDx Health, which could affect market share and revenue growth [256]. - The Decipher Prostate test competes with traditional pathology methods and emerging technologies, necessitating continuous innovation to maintain market position [256]. - The Afirma genomic classifier faces competition from organizations using NGS technology, highlighting the need for differentiation in product offerings [257]. - The company anticipates competition in the lung cancer diagnostics market from Biodesix, Inc., and in breast cancer diagnostics from Exact Sciences Corporation, which holds a significant market share [258]. Operational and Financial Risks - The company faces challenges in maintaining demand for its tests, which is critical for sustaining profitability [181]. - The company relies on sole suppliers for critical reagents and materials, which poses risks to revenue generation if these suppliers fail to meet quality or quantity requirements [200]. - The integration of C2i may face challenges, including potential flaws in algorithms and the need for substantial internal control improvements, which could incur significant costs [194]. - The company must effectively manage inventory to avoid adverse impacts on operations, as supply chain issues and expiration of materials could lead to increased costs [198]. - The company’s ability to scale operations and meet demand is critical, requiring additional certified laboratory scientists and enhanced quality assurance programs [207]. - Legislative changes in the U.S. healthcare system may materially affect the company’s financial condition and operations, particularly regarding reimbursement for tests [209]. - The company is actively participating in the bankruptcy proceedings of NanoString, which may disrupt supply chains and impact operational stability [203]. - The company is facing adverse impacts from uncertain economic conditions, including persistent inflation and volatile interest rates, which have been exacerbated by global conflicts such as the war in Ukraine [359]. - The company has experienced disruptions in its operations due to geopolitical uncertainties and natural disasters, which could affect supply and demand for its products [361]. Intellectual Property and Litigation - The company relies on patent protection for its proprietary technologies, but the patent application process can be time-consuming and expensive, posing risks to competitive advantage [316]. - The patent positions in the life sciences sector are uncertain, and recent court decisions may affect the patentability of genomic diagnostic tests [321]. - The company may face challenges in enforcing its intellectual property rights, particularly in foreign jurisdictions where protections may be weaker [322]. - The company may incur significant costs and distractions from litigation related to intellectual property rights, which could adversely affect its business [331]. - The licensing of third-party technology is competitive, and failure to secure necessary licenses on reasonable terms could harm the company's business [336]. - The company may be involved in litigation related to third-party intellectual property, which could be costly and impact its financial condition [338]. Financial Performance and Taxation - As of December 31, 2024, the company had net operating loss (NOL) carryforwards of approximately $605.4 million for federal tax purposes, with expiration beginning in 2034 [344]. - The company may incur substantial costs related to royalty payments for licenses obtained from third parties, negatively affecting financial results [340]. - The company has foreign NOL carryforwards of approximately $63.7 million and $63.3 million for Canadian and French tax purposes, respectively, with varying expiration timelines [344]. - Changes to Internal Revenue Code Section 174 require the company to capitalize and amortize research and development expenditures over five or 15 years, impacting NOL utilization [346]. - The company has never paid dividends on its capital stock and does not anticipate doing so in the foreseeable future, intending to retain earnings for business growth [353]. - The company’s quarterly operating results may fluctuate significantly due to various factors, including reimbursement and market conditions, which could affect stock price [354]. - The company’s ability to use NOL carryforwards may be limited by changes in corporate ownership, potentially resulting in increased future tax liability [345]. - The company recognizes test revenue upon delivery of patient reports, which may lead to fluctuations in revenue and impact financial results [357]. Research and Development - The company is focused on developing enhancements to its test offerings and additional diagnostic tests, requiring significant resources for research and development [279]. - The product development process involves high risks, with many projects failing to result in commercial products, potentially delaying revenue generation [280]. - The company faces challenges in obtaining sufficient samples for clinical studies, which could hinder product development and reimbursement [280]. - Rapid technological advancements in diagnostics necessitate continuous innovation to maintain competitive positioning and prevent obsolescence [281]. Data Privacy and Cybersecurity - The company faces risks related to cybersecurity, including potential breaches that could compromise sensitive data and harm its reputation [299]. - Compliance with evolving data privacy laws, such as GDPR, may require operational changes and could lead to financial penalties for noncompliance [306]. - The company may incur additional costs and risks due to the complexities of data protection laws in the UK following Brexit [308]. - The company is subject to various federal and state laws in the US regarding the protection of health-related and personal information, which could result in civil and criminal penalties if violated [309]. - The CCPA and CPRA impose increased privacy and data security obligations, potentially raising compliance costs and liabilities for the company [310]. - The company may face additional compliance costs and complexities due to international data transfer restrictions and local data residency laws in countries like Brazil and China [312]. - The evolving interpretation of consumer and data protection laws could lead to unexpected compliance costs and government-imposed fines [313]. - The C2i Acquisition involves personal data that may be subject to various privacy laws, increasing the complexity of global data compliance obligations [314].

Veracyte, Inc. (NASDAQ: VCYT ) , a prominent company in the field of genomic diagnostics, headquartered, incidentally, in South San Francisco, has made a name for itself by developing cutting-edge yet minimally invasive tests, the kind that, crucially, help improve patient outcomes, particularly in oncology and a range ofThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences o ...

Veracyte (VCYT) delivered fourth-quarter 2024 earnings of 36 cents per share, which marked a stupendous improvement of 71.4% from the year-ago period’s figure of 21 cents. The bottom line beat the Zacks Consensus Estimate by 24.1%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company-adjusted earnings per share (EPS) were 6 cents compared to the year-ago period’s loss of 39 cents per share. Full-year 2024 EPS of $1.19 increased 105.2% from the prior-year figure of 58 cents. Th ...

Veracyte (VCYT) Q4 2024 Earnings Call February 25, 2025 03:20 AM ET Company Participants Shayla Gorman - Director of Investor RelationsMarc Stapley - CEORebecca Chambers - CFODoug Schenkel - Managing DirectorPuneet Souda - Senior MDLu Li - Healthcare Equity Research, DirectorSubbu Nambi - Managing DirectorJoseph Conway - Equity Research AssociatePrashant Kota - Equity Research Associate Conference Call Participants Mason Carrico - Research AnalystMaggie Boeye - Equity Research AnalystCorey Rosenbaum - Equit ...