Veracyte stock rating reiterated at Outperform by William Blair

Published 07/08/2025, 11:28
Veracyte stock rating reiterated at Outperform by William Blair

Investing.com - William Blair has reiterated an Outperform rating on Veracyte, Inc (NASDAQ:VCYT), currently trading near its 52-week low at $23.97, following the company’s strong second-quarter performance that exceeded analyst expectations. According to InvestingPro data, the company maintains a robust financial health score of "GREAT" with strong cash flow metrics.

The genomic diagnostics company reported second-quarter revenue 8% ahead of consensus estimates, or 6% ahead excluding prior-period collections, according to William Blair’s analysis.

Veracyte’s Decipher product line showed particularly strong results with 24% revenue growth, while the company achieved adjusted EBITDA margins of 27.5%, beating consensus by 620 basis points, partly due to timing of expenditures.

Management has raised its 2025 testing revenue guidance by approximately $5 million, reflecting the quarterly outperformance, with continued growth driven by the Decipher and Afirma product lines. The company also increased its adjusted EBITDA margin guidance by 100 basis points at the midpoint.

Veracyte has now formally issued its total 2025 revenue guidance for the first time this year after reaching a resolution with its French subsidiary, Veracyte SAS, effective August 1.

In other recent news, Veracyte Inc . reported a significant earnings beat for the second quarter of 2025. The company achieved an earnings per share (EPS) of $0.44, surpassing the forecast of $0.11, representing a 300% surprise. Revenue also exceeded expectations, reaching $130.2 million compared to the projected $121.1 million. Despite these positive financial results, Veracyte’s stock experienced a decline in after-hours trading. The company’s stock fell 4.16%, closing at $23.97. These developments come as Veracyte navigates its 52-week range, with a high of $47.32 and a low of $22.61.

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