Lu Li's questions to Fulgent Genetics Inc (FLGT) leadership • Q1 2025
Question
Lu Li asked why Fulgent did not raise its full-year 2025 guidance despite a strong Q1 beat and momentum, questioned the source of Q1 Precision Diagnostics growth, and inquired about capital deployment plans for M&A and buybacks.
Answer
CEO Ming Hsieh stated the company prefers to wait for a more considerable adjustment to guidance, possibly in Q2, and noted that aggressive buybacks can negatively impact EPS during a loss period. CCO Brandon Perthuis attributed Precision Diagnostics' strength to new client wins in reproductive health, with some large clients still onboarding. Ming Hsieh confirmed the company is aggressively pursuing stock buybacks and actively evaluating M&A opportunities.