FLGT = Fulgent Genetics (NASDAQ: FLGT) (“Fulgent Genetics” or the “company”), a provider of comprehensive genetic testing and Next Generation Sequencing (NGS) solutions, announced financial results for its third quarter ended September 30, 2019.
Third quarter revenue was $10.3 million, an increase of 84% year over year from $5.6 million in the third quarter of 2018. GAAP income for the third quarter of 2019 was $1.5 million, or $0.08 per share, and non-GAAP income was $2.6 million, or $0.14 per share.
Piper Jaffray analyst William Quirk upgraded Fulgent Genetics to Overweight from Neutral with a price target of $12.30, up from $9.50. The company reported “strong” volume growth for the fourth consecutive quarter with a 272% year-over-year increase in Q3, Quirk tells investors in a research note. Further, Fulgent’s margins continue to improve substantially despite the slight average selling price decrease, driven by better productivity and higher test volume, says the analyst. As such, he believes the stock deserves a higher multiple.
TCMD = Tactile Systems Technology, Inc. (“Tactile Medical”) (Nasdaq: TCMD), a medical technology company focused on developing medical devices for the treatment of chronic diseases at home, today reported financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Summary:
- Third quarter total revenue increased 37% year-over-year, to $49.6 million, compared to $36.3 million in third quarter 2018; the adoption of new lease accounting standards contributed three percentage points of the year-over-year increase in total revenue.
- Operating income of $3.2 million, compared to $1.4 million in third quarter 2018.
- Net income of $2.4 million, compared to $1.7 million in third quarter 2018.
- Adjusted EBITDA of $6.4 million, compared to $4.6 million in third quarter 2018.
- On July 22, 2019, the Company announced the appointment of Jay Stracke to the position of Vice President of Reimbursement and Payer Relations, effective July 15, 2019. Mr. Stracke succeeded Tactile Medical’s Senior Vice President of Reimbursement and Payer Relations, Mary (Maggie) Thompson, RN, who retired from her full-time role and transitioned into a part-time role as Vice President, Payer Initiatives.
- “Our strong execution continued in the third quarter with revenue growth of 37% year-over-year and steady improvements in profitability,” said Gerald R. Mattys, Chief Executive Officer of Tactile Medical. “These accomplishments were primarily driven by the ongoing investments in the field sales team, in combination with solid market adoption of the Flexitouch Plus system, a keen focus on targeting the most productive accounts in the lymphedema market and the broad in-network coverage we have obtained with commercial payers.”
Mr. Mattys continued, “We are raising our 2019 revenue guidance today and look forward to closing out the year with financial and operational momentum as we continue to deliver on our strategy to raise awareness of lymphedema and chronic venous insufficiency, bring our at-home therapies to new patients and increase our share of the more than $4 billion U.S. market opportunity that these chronic conditions represent.”
Piper Jaffray analyst JP McKim lowered his price target for Tactile Systems to $70 from $84 while reiterating an Overweight rating on the name. Tactile reported results beating on both the top and bottom lines and raised guidance for the full year, McKim tells investors in a post-earnings research note. While the implied guidance for Q4 “does appear a little light,” says the analyst, he believes this is largely conservatism from management. McKim encourages investors to “take a look at the name with shares at these levels.”
CDEV = Centennial Resource Development, Inc. (“Centennial” or the “Company”) (NASDAQ: CDEV) today announced financial and operational results for the third quarter 2019.
Financial and Operational Highlights:
- Reported 17 percent increase in daily oil and 21 percent increase in total equivalent production volumes year-over-year
- Increased 2019 oil and total company production growth targets to 22 percent, while maintaining original capital budget
- Reduced drilling and completion capital expenditures for the fourth consecutive quarter
- Continued to drive strong operational efficiencies
- Generated solid well results including multiple Third Bone Spring Sand and Upper Wolfcamp A co-development projects in Texas
- Reduced operated rig count from six to five in September 2019
- Reaffirmed $1.2 billion borrowing base
- Financial Results
For the third quarter 2019, Centennial reported a net loss of $3.6 million, or $0.01 per diluted share, compared to net income of $39.3 million, or $0.15 per diluted share, in the prior year period.
Average daily crude oil production increased 17 percent to 42,079 barrels of oil per day (“Bbls/d”) compared to the prior year period. Average total equivalent production increased 21 percent compared to the prior year period.
“Our team continues to do an outstanding job driving operational efficiencies, resulting in reduced cycle times and well costs. Year-to-date, we have meaningfully reduced both drilling and completion costs,” said Mark G. Papa, Chairman and Chief Executive Officer. “These cost reductions, combined with continued, above average well performance have allowed us for the second consecutive quarter to increase our full-year production targets without altering our original capital expenditure budget.”
Centennial has continued to optimize its Delaware Basin acreage position with multi-well pad co-development to drill extended laterals. During the quarter, Centennial reported strong well results from multiple intervals in both Texas and New Mexico. On the southeast portion of the Company’s Toyah acreage in Reeves County, Texas, the Barracuda unit was drilled with approximate 10,300-foot laterals and included one Third Bone Spring Sand well and two Upper Wolfcamp A wells. The wells averaged 1,918 barrels of oil equivalent per day (“Boe/d”), or 1,583 Bbls/d of oil, for the initial 30-day production period. Based on recent operational results, Centennial increased its 2019 oil growth target from 18% to 22% and total company growth target from 17% to 22%. The Company increased the number of completed wells expected this year, as a result of efficiencies gained to date. Centennial’s full-year capital budget remains unchanged. The Company also lowered its full-year 2019 guidance ranges for Cash G&A and DD&A, while increasing LOE on a per unit basis.