Can GenMark Diagnostics, Inc (NASDAQ:GNMK) Turn it Around?

GenMark Diagnostics, Inc (NASDAQ:GNMK)

GenMark Diagnostics, Inc (NASDAQ:GNMK)

GenMark Diagnostics, Inc (NASDAQ:GNMK) shares are down almost 15% to $10.18 after the diagnostic solutions provider announced disappointing Q2 financial results. GNMK shares closed Monday at $11.83 then gapped down after the news was released and opened at $11.52. The market continued to sell-off the shares until they hit the inter-day low of $9.45. As of 11:45 AM EST, shares are trading around $10.15. Volume for the shares are over ten times their listed 30-day, daily average.

GenMark Diagnostics, Inc (NASDAQ:GNMK)
One month daily candlebar chart for $GNMK

Carlsbad, CA-based GenMark Diagnostics, Inc (NASDAQ:GNMK) lost (-$0.37) per share, a larger loss than the (-$0.30) per share loss for the same quarter in 2016. The consensus street estimate was for a loss of (-$0.31) per share. GenMark’s Q2 revenue was $12.4 million and that missed the consensus street estimate of $12.6 million. Gross profit for the second quarter was $4.9 million, or 40% of revenue, compared with $7.8 million, or 62% of revenue in the same period of 2016.

Hany Massarany, President and Chief Executive Officer of GenMark Diagnostics, Inc (NASDAQ:GNMK) stated in a press release “We are delighted to have accomplished several important goals in the second quarter. Our team achieved FDA 510(k) clearance of the ePlex instrument and Respiratory Pathogen Panel as well as CE Mark for all three of our Blood Culture ID Panels. In addition, we significantly strengthened our balance sheet, which will enable us to bring even more focus to the global commercialization of our ePlex System and its menu expansion.”

The stock performance of GenMark Diagnostics, Inc (NASDAQ:GNMK) has not been as strong as the broader market. GNMK shares are down 3.35% YTD, however they are up over 11% for the year. Shareholders have been experiencing wider losses year on year. In 2012 the per share loss was (-$0.84). That loss expanded every year and in 2016 the annual per share loss was reported at (-$1.15). However, sales have improved on an annual basis. In 2012 sales were posted at $20.5 million and that figure grew every year and was a reported 49.3 million by 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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