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OraSure Technologies (NASDAQ: OSUR)stock is up 24% at 12:53 p.m. EST after the company announced solid fourth-quarter earnings yesterday after the closing bell. The test maker also announced guidance for the first quarter, which doesn't look too shabby.
Revenue for the quarter was up 10% year over year, topping the whole-year growth of 7%. International sales are saving OraSure's revenue with international sales of OraQuick HIV products up 217% year over year in the fourth quarter and overseas sales of OraQuick HCV test up 123% year over year. U.S. sales of the OraQuick HIV and HCV tests fell year over year as did sales of the OraQuick Ebola test.
The international sales benefited from an $18 million contract with an unnamed foreign government, mainly for shipments of OraQuick HCV tests. The shipments started in the fourth quarter and will continue throughout 2017.
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The overall revenue line benefited from recognition of revenue from OraSure's HCV co-promotion agreement with AbbVie (NYSE: ABBV), which was terminated at the end of the year.
On the bottom line, OraSure Technologies made $0.13 per share, up 62.5% from the $0.08 per share in the year-ago quarter. The bottom line was able to grow faster than revenue thanks to lower operating expenses from a variety of sources, including lower costs from OraSure's part of the AbbVie agreement, lower commissions, a reduction in bad debt, and a benefit form a dispute settlement with a supplier of raw materials.
Management is guiding for revenue of $31 million to $31.5 million in the first quarter. While that includes the loss of the AbbVie revenue, it's a nice 21% to 23% increase over the year-ago quarter, thanks to the aforementioned international contract.
For earnings, management thinks the bottom line will come in between $0.17 to $0.18 per share, which includes a previously announced$12.5 million litigation settlement with AncestryDNA.
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