Veracyte (VCYT) PT, Estimates Bumped at Piper Jaffray Despite Q2 Rev Miss

Piper Jaffray analyst William Quirk reiterated an Overweight rating while bumping estimates and his price target on Veracyte, Inc (NASDAQ: VCYT) following Q2 results and the related after hours sell-off on the revenue miss.

Quirk comments, "Veracyte reported a 71.2% yoy revenue increase to $8.7M, below our in-line $9.4M estimate. VCYT received 16,458 FNAs (+32.5% yoy, 14.5% qoq), below our 17,850 estimate, reflecting faster institutional-based adoption. GEC test rate of >22% was above our 20.8% estimate. LPS of ($0.31) was favorable to our in-line ($0.33) estimate. Management changed F2014 guidance, maintaining revenues of $38M-$43M, but lowering FNA volume to 66K-73K (was 76K-83K). The important delta here is a higher rate of GEC's which should offset the lower FNAs."

The analyst also notes the new Genzyme co-promotion agreement is accretive.

The firm moved FY 2015 EPS from ($0.97) to ($0.79) and FY 2016 EPS from ($0.30) to ($0.24).

For an analyst ratings summary and ratings history on Veracyte, Inc click here. For more ratings news on Veracyte, Inc click here.

Shares of Veracyte, Inc closed at $14.65 yesterday.

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