Piper Jaffray Cuts Price Target on Genomic Health (GHDX) After 4Q Reports In-Line with Preliminary Results

Piper Jaffray reiterated a Neutral rating on Genomic Health Inc. (NASDAQ: GHDX), and cut the price target to $31.00 (from $32.00), following the company's 4Q earnings report. Genomic Health announced 4Q15 revenue growth of 7.8% yoy to $74.5M, slightly above preliminary results ($73M-$74M). Management attributes $3M of the quarter's revenue miss relative to its original guidance to ordering and test processing disruption due to implementing a new enterprise-wide system midquarter. EPS of ($0.10) was $0.02 below consensus of ($0.08).

Analyst William Quirk commented, "Genomic Health announced 4Q15 revenue of $74.5M, slightly better than preliminary results ($73M-$74M). EPS of ($0.10) was $0.02 below consensus of ($0.08). Management attributes the quarter's results to ongoing momentum with volume growth, offset by disruption from implementing a new enterprise-wide system mid-quarter. Management reiterated FY16 revenue guidance of 12%-17% growth to $320M-$335M and issued EPS guidance in the range of ($0.55) to ($0.37), well below the Street's ($0.13) expectation. We view guidance as achievable, but believe shares are fairly valued and remain Neutral with a $31 price target ($32 prior)."

For an analyst ratings summary and ratings history on Genomic Health Inc. click here. For more ratings news on Genomic Health Inc. click here.

Shares of Genomic Health Inc. closed at $26.72 yesterday.

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