OSUR - OraSure adds 25% as COVID-19 testing drives Q2 earnings beat

The shares of diagnostics company OraSure Technologies ( NASDAQ: OSUR ) climbed ~25% in the morning hours Wednesday, the highest since March 2020, as Wall Street reacted to a sharp quarterly beat and above consensus guidance issued by the management with its Q2 2022 financials.

Revenue for the quarter rose ~40% YoY to $80.2M as the company’s Diagnostic unit added $60.4M marking an over threefold rise from the prior year period thanks to the rising demand for OraSure’s ( OSUR ) InteliSwab COVID-19 rapid test.

InteliSwab revenue jumped ~95% relative to the previous quarter, offsetting a ~10% decline in the base Diagnostic business, the company added.

“This quarter we delivered strong revenue growth driven by InteliSwab which helped offset headwinds in our core business,” Chief Executive Carrie Eglinton Manner remarked.

While gross margins for InteliSwab expanded over 2,000 basis points in the quarter, overall gross margin dropped to ~34% from ~53% in Q2 2021 on a GAAP basis raising net loss to $18.8M from $1.4M in the previous year.

Appointing Kenneth J. McGrath as the new Chief Financial Officer effective this week, OraSure ( OSUR ) announced plans to become cash flow positive in 4Q 2022.

In addition, the company guided for $90M – $95M in revenue for Q3, which was sharply ahead of the consensus estimates of ~$75.6M.

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