Will Robust Exome and Genome Growth Boost WGS' Q1 Earnings Results?

Core Viewpoint - GeneDx Holdings Corp. is expected to report strong first-quarter 2025 results, with significant revenue and earnings growth anticipated compared to the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for GeneDx's first-quarter 2025 revenues is $79.9 million, indicating a 28% increase from the same quarter last year [2]. - The expected earnings per share (EPS) for the first quarter of 2025 is 11 cents, reflecting a 133% improvement compared to the previous year [2]. - GeneDx reported adjusted earnings of 70 cents per share in the last quarter, exceeding the Zacks Consensus Estimate by 250% [1]. Group 2: Performance Trends - GeneDx has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 120.05% [1]. - Estimates for the first-quarter earnings have remained stable at 11 cents over the past 90 days [3]. Group 3: Growth Drivers - Revenue growth is expected to be driven by Exome and genome tests, with over 20,000 tests delivered in the fourth quarter, marking a 32% year-over-year increase and a 101% revenue jump [4]. - The introduction of cerebral palsy as a new indication for genetic testing may have positively impacted performance [4]. - The outpatient pediatric neurology sector is likely contributing to strong growth, supported by the launch of Aura, Epic's specialty diagnostics suite [5]. Group 4: Innovations and Operational Efficiency - GeneDx has introduced ultraRapid Whole Genome Sequencing, providing faster diagnoses for neonatal and pediatric patients [6]. - The company achieved a 106% growth in adjusted gross profit from continuing operations in the fourth quarter, leading to a 56% increase in gross margin [7]. - Ongoing improvements in operational efficiency are expected to enhance bottom-line performance in the upcoming quarter [7].