Shares of Veracyte Inc. (VCYT) soared over 8% in pre-market trading on November 8, 2024, after the molecular diagnostics company reported impressive third-quarter financial results and raised its full-year guidance, fueling optimism about its growth prospects.

For the third quarter of 2024, Veracyte's revenue surged 29% year-over-year to $115.9 million, beating analyst estimates of $109.81 million. This robust growth was driven by strong performance in the company's testing segment, with its Decipher and Afirma tests seeing revenue growth of 48% and 19%, respectively. Adjusted earnings per share of $0.20 also exceeded expectations of $0.03.

Encouraged by the strong Q3 performance, Veracyte raised its full-year 2024 revenue guidance to $442-$445 million, representing year-over-year growth of 22-23%. The company also expects its Adjusted EBITDA margin to be slightly more than 20% for the year, reflecting a focus on profitability.

Following the impressive results and raised guidance, several analysts have reacted positively, raising their price targets and reiterating buy ratings on Veracyte's stock. Analysts cited the company's robust financial performance, expanding adoption of its tests, and the anticipated launch of its Minimal Residual Disease (MRD) test for bladder cancer in the first half of 2026 as key growth drivers.