The company now anticipates total annual revenue between $590 million and $593 million, a tighter range than the previous $590 million to $596 million estimate. This downward adjustment stems largely from weaker-than-anticipated performance in its core testing division. Executives revised the expected testing revenue to a range of $571 million to $573 million, falling short of the earlier $576 million to $582 million forecast.
In section Market Quotes
Veracyte Shares Tumble on Weak Test Volume
A 28% drop in after-hours trading wiped out significant gains for Veracyte on Wednesday, as the cancer diagnostics firm narrowed its annual revenue projections. Investors reacted sharply to management’s admission that test volumes, particularly for its flagship Decipher Prostate product, failed to meet internal targets during the recent quarter.
Chief Executive Marc Stapley pointed to the Decipher Prostate test as a primary drag on volume, noting that demand fell below management’s expectations. Furthermore, the company reported minimal revenue contributions from its recently introduced diagnostic products, signaling a slower-than-expected commercial ramp-up. For the third quarter, Veracyte recorded total revenue of $151.8 million, with testing revenue accounting for $146.4 million of that figure. Despite the post-market slump, the stock had maintained a 24% gain for the year heading into the Wednesday close.
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