Genomic Health Q4 Revenues Rise 22 Percent; International Ef

Genomic Health reported recently that its fourth quarter revenues rose 22 percent year over year, beating the consensus Wall Street estimate of $101.5 million.

For the three months ended Dec. 31, 2018, the company's total revenues were $104.6 million compared to $87.5 million reported in Q4 2017 and $85.7 million adjusted to a subsequent switch to the ASC-606 accounting standard.

In the US, Genomic Health's product revenue was $88.6 million in Q4 2018, 23 percent more than the $72 million it saw in the same period in 2017, or $73.5 million as reported pre-606. Invasive breast cancer test revenue was $79.3 million, up 22 percent from a pre-606 adjusted revenue of $64.7million in Q4 2017. And prostate cancer test revenue totaled $7.4 million during the quarter, a 48 percent increase year over year.

International quarterly revenues increased 19 percent year over year to $16.0 million from $13.7 million as reported and $13.4 million adjusted for the new ASC-606. On a constant currency, non-GAAP basis, this translated to a 21 percent increase, the company added.

Overall, the firm said that it delivered more than 35,530 Oncotype test results in the fourth quarter of 2018 compared to 31,990 in Q4 2017. Breast cancer test volume grew 9 percent compared to the prior year's quarter while prostate test volume was up 19 percent. Its international tests delivered grew 15 percent and represented approximately 24 percent of total test volume in the quarter.

The company's R&D costs rose about 11 percent in Q4 2018 to $16.6 million from $14.9 million in the same quarter of 2017. Its SG&A spending was also up 11 percent at $62.8 million compared to $56.5 million.

The company reported net income of $8.9 million, or $0.23 per share, in Q4 2018, compared to $1.9 million, or $.05 per share, in Q4 2017.