Co-Diagnostics (NASDAQ:CODX), a medical testing company that has risen sharply in both prominence and share price since the beginning of this year, fell hard in after-hours trading on Thursday. The culprit was the company’s second-quarter results, which fell quite short of analyst expectations.
For the quarter, the details of which were released after market close, Co-Diagnostics earned just over $24 million in net revenue thanks to sales of its Logix Smart COVID-19 testing kit. That total was well over the $61,574 it booked in the same quarter of 2019.
On the bottom line, the company flipped to a profit of slightly more than $12.3 million ($0.46 per share), from the almost $1.4 million loss of the year-ago quarter.
While those year-over-year improvements were striking, they didn’t meet prognosticator estimates. On average, analysts following the company were estimating that it would post $26.5 million for revenue, and net a profit of just under $0.59 per share.
Co-Diagnostics received Emergency Use Authorization (EUA) for Logix Smart in April, putting the company on many investors’ radar as a coronavirus stock worthy of attention. The Q2 net margin was so high primarily because of the testing kit’s profitability, which Co-Diagnostics said in its earnings release boasts gross margins of 70%.
As for the future, “[w]ith clients in over 50 countries, 25 U.S. states, and validations of test accuracy from regulatory bodies of numerous countries around the world, Co-Diagnostics has established a distribution platform that we believe will continue to support sales and profitability as our tests have gained widespread acceptance in the market,” said CEO Dwight Egan.
Co-Diagnostics’ shares were down by 16% in after-market trading Thursday night.