Biocept, Inc. :BIOC-US: Earnings Analysis: Q3, 2016 By the Numbers : November 10, 2016

Biocept, Inc. reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Biocept, Inc. – Exact Sciences Corporation, Genomic Health, Inc., Myriad Genetics, Inc., Alere Inc., Veracyte Inc and Foundation Medicine, Inc. (EXAS-US, GHDX-US, MYGN-US, ALR-US, VCYT-US and FMI-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 1.05 million, Net Earnings of USD -4.74 million.
  • Gross margins widened from -603.47% to -79.16% compared to the same period last year, operating (EBITDA) margins now -441.90% from -2,599.53%.
  • Earnings decline largely a result of non-operational activity, pretax margins improved from -2,727.22% to -452.89%.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2015-09-30 2015-12-31 2016-03-31 2016-06-30 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.16 0.22 0.22 0.66 1.05
Revenue Growth (%YOY) 1504.59 188.65 47.58 763.46 535.27
Earnings (mil) -4.5 -4.62 -4.88 -4.59 -4.74
Earnings Growth (%YOY) -16.49 -18.96 -28.27 -13.86 -5.49
Net Margin (%) -2727.35 -2115.37 -2202.29 -693.08 -452.89
EPS -0.72 -0.72 -0.75 -0.6 -0.57
Return on Equity (%) -200.07 -347.8 -1217.47 N/A N/A
Return on Assets (%) -110.63 -149.05 -224.56 -280.9 -395.85

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Market Share Versus Profits

Revenues History
Earnings History

BIOC-US‘s change in revenue this period compared to the same period last year of 535.27% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that BIOC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 57.99% and earnings by -3.24% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s year-on-year earnings decline did not come as a result of a contraction in gross margins or because of any cost control issues. Both gross margins and operating margins (EBITDA) margins actually improved over this time frame. Gross margins went from -603.47% to -79.16%, while operating margins improved from -2,599.53% to -441.90% over this period. For comparison, gross margins were -151.87% and EBITDA margins -671.60% in the immediate last period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Margins

The company’s earnings decline is largely a result of non-operational activity. As a matter of fact, the company showed increases in operating (EBIT) and pretax margins. EBIT margins improved from -2,644.03% to -441.90% and pretax margins widened from -2,727.22% to -452.89%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Biocept, Inc.

Company Profile

Biocept, Inc. is an oncology laboratory service company, which focuses on the development and marketing of novel laboratory products in the detection of rare cells to include circulating tumor cells. It develops and commercializes proprietary circulating tumor cell and circulating tumor DNA tests utilizing a standard blood sample. The company utilizes cell enrichment and extraction technology for the detection and analysis of circulating tumor DNA tests. It also offers services to other laboratory testing providers, academic institutions, research organizations, biopharmaceutical companies and clinical trial support. The company was founded on May 12, 1997 and is headquartered in San Diego, CA.

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