Exagen ( NASDAQ: XGN ) stock climbed 47% on Tuesday after the commercial-stage diagnostics firm raised its 2022 revenue guidance and posted stronger-than-expected Q3 results .
The company now expects 2022 revenue of $40M-$43M vs. prior outlook of $35M-$40M, reflecting current reimbursement trends.
Q3 EPS was -$0.47 vs. -$0.42 in Q3 2021, while revenue rose 20% to $14.7M. Number of ordering healthcare providers increased 16% to 2,287.
"We did see an impact on demand from Hurricane Ian during the last week of the quarter. Florida is one of our largest markets and we saw the impact on demand continue through the first weeks of Q4," said CFO Kamal Adawi in an earnings call .
Exagen's ( XGN ) audit committee determined that the firm made certain errors in the way it recognized revenue related to changes in billing practices specific to its transition to the use of the PLA code for AVISE CTD.
These errors led to an overstatement of revenue and accounts receivable of $1.4M and $0.9M, respectively, and an understatement of other liabilities of $0.5M for Q2. Exagen ( XGN ) will file an amendment to its Form 10-Q for Q2.
Canaccord Genuity lowered its price target on Exagen ( XGN ) to $7 from $8 (233.3% potential upside to last close).
"Although we have modestly lowered our price target to reflect near-term uncertainty, we remain bullish on Exagen's ( XGN ) long-term growth potential," said analyst Kyle Mikson.
Shares of Exagen ( XGN ) dropped ~75% YTD.
SA Quant rates the stock Strong Sell , contrasting bullish sell-side ratings .
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Exagen stock climbs 47% on raised guidance, stronger-than-expected results