What happened
Investors were none too happy with Co-Diagnostics (CODX -4.39%) on Friday. They traded the stock down by almost 12% following the release of full-year 2021 results.
So what
For the year, Co-Diagnostics posted revenue of just under $98 million, which was a 31% improvement over the 2020 figure. The company, which has come into some prominence due to its coronavirus diagnostic products, said the increase was due largely to sales of its Logix Smart COVID-19 tests.
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This also helped push Co-Diagnostics' gross profit up to more than $86 million. The company didn't hesitate to mention that its gross margin is thus 88%.
But net profit for the healthcare company fell, dipping to $36.7 million, or $1.23 per share, from the year-ago result of $42.5 million.
The earnings release oddly didn't include any fourth-quarter figures.
Now what
Although the number of COVID cases is dropping at the moment, Co-Diagnostics still sees much opportunity in testing for the disease.
CEO Dwight Egan said, "Looking ahead, we believe that the demand for our COVID-19 tests and other diagnostic products will persist as our reputation has now been established and continues to grow among the diagnostic testing community and organizations implement COVID-19 testing as part of normal protocol," Egan said.
That may be true, but if the coronavirus ends up sliding into an endemic rather than staying a pandemic, demand will surely soften. It's likely that investors had this firmly in mind (in addition to that lack of fourth-quarter numbers) when digesting the company's latest results.
Nevertheless, Co-Diagnostics proffered first-quarter guidance that compared favorably to analyst estimates. It's forecasting revenue of $21 million to $22 million, and per-share earnings of $0.17 to $0.20. On average, the small clutch of prognosticators following the stock are expecting $21.3 million in revenue and $0.11 in earnings per share, according to data compiled by Yahoo! Finance.
