Veracyte Shares Off 8% As Q4 2024 Adj. EPS And Sales Beat Estimates

Veracyte, Inc. (NASDAQ: VCYT) shares fell by approximately 8% in early trading on February 25, 2025, despite reporting adjusted earnings per share (EPS) and sales that beat analysts' estimates for the fourth quarter of 2024. The company announced financial results for the quarter ended December 31, 2024, which showed strong growth in testing revenue and volume, driven by its strategic growth drivers, Decipher and Afirma.

Veracyte's adjusted EPS for the quarter was $0.36, surpassing the consensus estimate of $0.26 by 38.46%. Total revenue for the quarter was $118.6 million, an increase of 21% compared to the same period in 2023, with testing revenue growing by 24% to $112.2 million. The company's total volume increased by 22% to 41,271 tests, and testing volume grew by 25% to 39,107 tests.

The company's flagship products, Decipher and Afirma, contributed significantly to its growth:

* Decipher revenue grew by 44%, with volume increasing by 45% to more than 22,400 tests.
* Afirma revenue grew by 4%, with volume increasing by 8% to more than 16,300 tests.

Veracyte's strong financial performance in Q4 2024 was driven by the growing adoption of Decipher and Afirma, as well as the company's strategic partnerships and investment in research and development. The receipt of approval from the Molecular Diagnostic Services Program (MolDx) for Decipher's use in the metastatic population opened up a new market for the company, potentially driving further growth.

However, the company's shares fell by 8% in early trading, reflecting investor disappointment with the stock's performance despite the positive financial results. The market may be anticipating further growth and higher expectations for the company's future performance.




In conclusion, Veracyte's strong financial performance in Q4 2024, driven by its strategic growth drivers, Decipher and Afirma, positions the company for future growth. However, the company's shares fell by 8% in early trading, reflecting investor disappointment with the stock's performance despite the positive financial results. As the company continues to innovate, form strategic partnerships, and maintain financial discipline, it will be crucial to monitor its performance and market reactions to validate the sustainability of these trends.