Guardant Health Inc
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|Cd | LOCK|?@ | LOCK|#^h%wV |
Guardant Health Earnings: Excellent Results and Guidance Increased Again, Shares Undervalued
Guardant Health's third-quarter results once again exceeded our expectations. Revenue for the three months was $191 million, or 34% year-on-year growth, and gross profit margin was 61%, or 1.4 percentage points better than the same period last year. The company increased its full-year guidance to 28%-29% revenue growth from the previous guidance of 22%-24%. We estimate the company is still about four years away from breakeven profitability, which informs our no-moat rating, but we view 2025 as an important year with potentially positive catalysts related to Shield, Reveal, and its multicancer early detection test. We maintain our $47 fair value estimate and think shares are undervalued.
