Guardant Health Earnings: Strong Start to the Year; FDA Meeting Up Next

Guardant Health reported results that were better than our expectations. Revenue for the three months of 2024 was $169 million, or 31% year-on-year growth, and gross profit margin was 61%, or 2.5 percentage points better than the same period last year. We think this is a very strong start to the year given the company’s full-year guidance of 17.5% revenue growth, which could have upside as the year progresses. We maintain our $47 fair value estimate and think shares are undervalued. We reiterate the company’s Very High Morningstar Uncertainty Rating, as key pipeline products are not yet derisked, and we estimate the company is still about four years away from profitability.