Earnings To Watch: Guardant Health (GH) Reports Q3 Results Tomorrow

Diagnostics company Guardant Health (NASDAQ:GH) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.

Guardant Health beat analysts’ revenue expectations by 10% last quarter, reporting revenues of $232.1 million, up 30.9% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Is Guardant Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Guardant Health’s revenue to grow 23% year on year to $235.5 million, slowing from the 33.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.49 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guardant Health has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8% on average.

Looking at Guardant Health’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 3.3%, and HCA Healthcare reported revenues up 9.6%, topping estimates by 3.3%. Quest traded down 4.9% following the results while HCA Healthcare was up 6.4%.

Read our full analysis of Quest’s results here and HCA Healthcare’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7% on average over the last month. Guardant Health is up 16.3% during the same time and is heading into earnings with an average analyst price target of $70.91 (compared to the current share price of $72.12).

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