Guardant Health Earnings: Strong Results Lift 2023 Outlook Mildly; Shares Still Undervalued

Guardant Health posted good third-quarter results and revised full-year guidance up by $7 million to $554.5 million using the midpoints of the ranges. Revenue in the quarter was $143 million, or 22% year-on-year growth, and precision oncology was $133 million, or 31% year-over-year growth. We maintain our $47 fair value estimate and think shares are undervalued. However, we reiterate that key products are not yet derisked, and the company is probably at least four or five years away from being profitable.