FLGT - The Monster Business Lurking Behind Fulgent's COVID Results
Like many companies, Fulgent Genetics (NASDAQ: FLGT) has been labeled a "pandemic stock" by some investors. It's easy to understand why. In the most recent quarter, 82% of Fulgent's revenue came from COVID-19 tests. However, buried beneath this headline statistic is a genetic testing business that's growing like a weed and represents the future of the business.
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In the most recent quarter, Fulgent's revenue grew to $126 million, a 124% increase over the third quarter of 2020. Taking a look at previous quarters, the overall revenue results for the company have moved in concert with the volume of COVID testing. Revenue hit its peak at $359 million in Q1 2021 as the world was dealing with the delta variant. However, if we strip out the revenue from COVID testing, we see that Fulgent's core business, its Next Generation Sequencing (NGS) testing, has grown impressively.
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The Monster Business Lurking Behind Fulgent's COVID Results