GeneDx Holdings Corp. (NASDAQ:WGS) shares are rebounding as investors step back in after the genetic testing company’s sharp post-earnings sell-off earlier this week.
What Happened
The stock had plunged nearly 49% on May 5 after the company cut its full-year revenue guidance and reported weaker-than-expected quarterly results. However, Thursday’s rally appears driven by bargain hunting as some traders view the stock — now hovering near its 52-week lows — as oversold following the steep decline.
Investor sentiment also received a boost after ARK Investment Management disclosed purchases of GeneDx shares on May 5, signaling continued institutional interest despite the company’s lowered outlook.
While the reduced guidance pressured the stock earlier in the week, investors are now focusing on operational metrics that remained strong during the quarter.
GeneDx reported 34% year-over-year growth in exome and genome testing volume, while revenue from its core exome and genome business increased 27%, highlighting continued demand for its genetic testing services.
Earnings Snapshot
GeneDx reported first-quarter adjusted EPS loss of 28 cents, missing analyst estimates of a 1-cent loss, while revenue rose 17% year-over-year to $102.3 million, below estimates of $112.96 million.
The company lowered full-year 2026 revenue guidance to $475 million-$490 million, down from prior guidance of $540 million-$555 million, and below analyst estimates of $550.22 …