Stock for Lucira Health, Inc. (LHDX) saw a surprising turn of events early this morning in the premarket. Following a persistent bearish spiral for two weeks, LHDX is currently undergoing a high-volume swing, driving up the share price. After a modest downward trajectory of 4%, LHDX stock steeply shot up over 18% in a few hours. These developments had taken place during the premarket session, with the stock being the focus of investor hype. The sudden shift in market perception towards LHDX comes after Lucira’s announcement of the latest quarterly financial results. Figures reported indicated the stock being potentially undervalued, leading to a buying rush for the LHDX stock.
LHDX Financial Performance
The most significant indicator for growth potential and value addition for Lucira Health has been the increase in sequential revenue. In a single quarter, the medical-tech firm had managed to boost overall revenue. It had done so by more than tripling the figure reported in the prior quarter. Moreover, the report further stated a complete annual revenue of $93.1M for the prior year. This figure is significant given that 2021 saw the company’s first year of complete commercialization of its rapid PCR kits. Both these figures not only communicate the company’s growth prospects but the sustainability of its business model and strategy.
PCR Testing Kit Demand & Sustainability
The new information communicated to the market has clearly translated into the LHDX swing, currently underway. The CEO further pointed to the remarkable profitability relating to substantially increased demand, matched to output accordingly. Rapid Covid testing kits entered mainstream markets, as restrictions began easing, creating ripe earnings opportunities for Lucira Health. The company had strategically employed its plant in the Dominican Republic to substantially expand output.
The sustainability of capturing the market of PCR testing kits is highly significant. As the world progresses beyond the initial pandemic scare, PCR testing may shift to standard procedure in day-to-day life. This is due to the virus becoming accepted as a normal reality of life, with vaccination rates soaring. Furthermore, another positive indicator for LHDX is its strategic partnership with Switch Health, the Canada-based health company. As part of the agreement, Lucira has committed to supply over two million home testing kits for the year 2022.
Conclusion
LHDX stock is currently undergoing a significant swing, given new information communicated to the market participants. Lucira’s financial results for the last quarter, and reporting year suggest high growth potential and sustainability.
