From Yahoo Finance: 2025-04-30 12:28:00

GeneDx exceeded revenue and earnings forecasts for the first quarter of 2025, with revenue growing 42% year over year to $87.1 million, beating Wall Street’s prediction of $79.5 million. Despite this, the company’s stock price plummeted by 42.9% due to concerns over the narrower revenue beat and a decline in test volume.

GeneDx reported a net loss of $6.5 million in Q1 but adjusted earnings were $7.7 million, or $0.27 per share, surpassing analyst estimates of $0.09 per share. Investors were disappointed by the lower-than-expected revenue beat and the decrease in test volume for the first time since the company went public in 2020.

Although GeneDx’s revenue guidance for the full year was raised to $360 million to $375 million, its stock experienced a significant drop. The company’s forward price-to-sales ratio of 5.4 is higher than the industry average of 4.8, making it less attractive to some investors despite the potential for a rebound.

The Motley Fool Stock Advisor team did not include GeneDx in their list of the top 10 stocks to buy now. The recommendation emphasizes stocks with potential for significant returns, contrasting with GeneDx’s recent stock performance. The team has a track record of market-beating returns compared to the S&P 500.

Read more: Why GeneDx Holdings Stock Is Plunging Today