Caris Life Sciences (NASDAQ:CAI) Announces Quarterly Earnings Results

Caris Life Sciences (NASDAQ:CAI) released its earnings results on Wednesday. The company reported $0.05 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.02, FiscalAI reports. The company had revenue of $275.36 million during the quarter. Caris Life Sciences had a return on equity of 16.35% and a net margin of 9.16%. Caris Life Sciences’s revenue was up 27.0% compared to the same quarter last year. During the same period last year, the business posted $0.08 EPS.

Here are the key takeaways from Caris Life Sciences’ conference call:

• Growth accelerated: Third-quarter revenue rose 27% year over year to $275.4 million, while clinical case volume increased 21% to approximately 61,500. Management attributed the momentum to sales-force expansion and said it expects volume to reach about 65,000 cases in Q4.
• Full-year revenue outlook increased to approximately $1.04 billion–$1.05 billion, from $1.03 billion–$1.04 billion. Caris also reported $15.3 million in quarterly GAAP net income and its sixth consecutive quarter of positive adjusted EBITDA.
• Caris is extending its product portfolio across cancer detection, treatment monitoring, and post-treatment surveillance, with Caris Assure Therapy Response Monitoring launched and Caris Confirm planned for December. Reimbursement work is still underway for the new products, and the next interim readout from the 25,000-participant ACHIEVE-2 study is expected in Q1 2027.
• Investment and cash use remain key watch points: Operating expenses rose $48.1 million year over year, and quarterly free cash flow was negative $39.7 million, partly due to planned inventory and growth investments. Management expects positive free cash flow for Q4 and the full year, but raised its operating-expense outlook to approximately $620 million.

Caris Life Sciences Price Performance

Caris Life Sciences stock traded down $1.41 during mid-day trading on Friday, hitting $24.62. 6,483,607 shares of the company were exchanged, compared to its average volume of 3,439,668. Caris Life Sciences has a 12-month low of $14.19 and a 12-month high of $36.50. The company has a market capitalization of $6.96 billion, a P/E ratio of 74.39 and a beta of 0.71. The business’s 50 day simple moving average is $29.50 and its two-hundred day simple moving average is $21.74. The company has a debt-to-equity ratio of 0.66, a current ratio of 5.53 and a quick ratio of 4.88.

Wall Street Analysts Forecast Growth

CAI has been the topic of a number of research reports. BTIG Research restated a “buy” rating and issued a $38.00 price target on shares of Caris Life Sciences in a report on Thursday. Canaccord Genuity Group boosted their target price on Caris Life Sciences from $22.00 to $30.00 and gave the stock a “hold” rating in a research report on Monday, October 19th. UBS Group set a $38.00 target price on Caris Life Sciences in a report on Thursday. JPMorgan Chase & Co. raised their price target on Caris Life Sciences from $25.00 to $35.00 and gave the company an “overweight” rating in a research report on Wednesday, October 14th. Finally, Wall Street Zen raised Caris Life Sciences from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Eight research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Caris Life Sciences presently has an average rating of “Moderate Buy” and an average price target of $30.09.

Insider Activity

In related news, insider Brian Brille sold 400,000 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $30.33, for a total transaction of $12,132,000.00. Following the sale, the insider owned 230,303 shares of the company’s stock, valued at $6,985,089.99. This trade represents a 63.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider John Russel Denton sold 7,500 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $31.82, for a total value of $238,650.00. Following the sale, the insider directly owned 174,855 shares in the company, valued at approximately $5,563,886.10. The trade was a 4.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,004,712 shares of company stock worth $27,205,419 over the last three months. 50.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Caris Life Sciences

Hedge funds have recently bought and sold shares of the company. PointState Capital LP acquired a new stake in Caris Life Sciences during the 2nd quarter worth approximately $121,690,000. BlackRock Inc. purchased a new position in Caris Life Sciences in the second quarter valued at approximately $98,666,000. Canada Pension Plan Investment Board acquired a new position in Caris Life Sciences during the second quarter valued at approximately $24,502,000. Bank of America Corp DE acquired a new position in Caris Life Sciences during the second quarter valued at approximately $21,395,000. Finally, Amundi grew its stake in Caris Life Sciences by 5,709.5% during the second quarter. Amundi now owns 1,218,364 shares of the company’s stock worth $21,711,000 after buying an additional 1,197,392 shares during the period.

About Caris Life Sciences

Caris Life Sciences is a biotechnology and precision-medicine company that uses molecular profiling and artificial intelligence to support cancer diagnosis, treatment selection and drug development. The company analyzes tumor and blood samples to identify genomic, molecular and immune characteristics that may help physicians better understand a patient’s disease and select targeted therapies.

Its offerings include comprehensive tumor profiling, liquid-biopsy testing and data-driven clinical decision-support tools.