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Myriad Genetics' (MYGN) Q4 Loss Narrower Than Estimated
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Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted loss per share of 31 cents for the fourth quarter of fiscal 2020 in contrast to earnings of 41 cents reported in the year-ago quarter. Adjusted loss per share was however narrower than the Zacks Consensus Estimate of a loss of 36 cents.
The quarter’s adjustments exclude one-time impairment charges on an intangible assets and goodwill tied to company acquisitions, certain impact related to COVID-19 expenses and the impact of Elevate 2020 program-related expenses, among others.
On a reported basis, earnings per share were 74 cents compared with the prior-year quarter’s earnings of 6 cents per share.
Overall, a sharp year-over-year decline in revenues stemming from the coronavirus impact through the second quarter affected the bottom line.
For the full-year, the company registered adjusted loss of 8 cents per share as against adjusted earnings of $1.67 per share in the year-ago period.
Revenues
Total revenues plunged 56.7% year over year to $93.2 million in the quarter under review. The figure also missed the Zacks Consensus Estimate by 2.3%. In the quarter, the company faced a significant challenge from the global pandemic and its impact on elective testing volume.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Fiscal 2020 total revenues were $638.6 million, marking a 25% decline from fiscal 2019.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $83.3 million, down 58% year over year.
Within this segment, Hereditary Cancer testing revenues fell 66% year over year to $39.9 million. Vectra testing revenues were $7.2 million, down 41% year over year.
Further, GeneSight testing revenues fell 71% year over year to $8.5 million in the reported quarter. Prolaris tests raked in revenues of $4.5 million, down 29% year over year. Prenatal testing revenues came in at $16.6 million, down 34%.
EndoPredict testing revenues were down 27% year over year to $2.2 million. Other testing revenues surged 175% to $4.4 million year on year.
Pharmaceutical and clinical service revenues in the quarter under review totaled $9.9 million, down 47% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 1589 basis points (bps) to 60.6%.
Research and development (R&D) expenses fell 16.7% year over year to $17.4 million. Selling, general and administrative (SG&A) expenses declined 28.3% to $107.4 million in the reported quarter.
Adjusted operating loss was $68.3 million compared with adjusted operating loss of $5.9 million in the year-ago quarter.
Financial Position
Myriad Genetics exited fiscal 2020 with cash and cash equivalents of $163.7 million compared with $121 million at the end of the third quarter of fiscal 2020. Long-term debt at the end of the fiscal was $224.4 million compared with $225.2 million at the end of the third quarter.
Cumulative cash flow from operating activities at the end of the fourth quarter was $60.7 million compared with $83.7 million at the end of the year-ago period.
2021 Guidance
Given the difficulty in predicting the future business trend, the company has not provided fiscal year 2021 financial guidance
Our View
Myriad Genetics exited fourth-quarter fiscal 2020 on a dismal note. Although adjusted loss was narrower than the Zacks Consensus Estimate, the company saw a year-over-year decline in the top and the bottom lines. Barring Other Testing revenues, sales in each of the operating segments plummeted in the quarter owing to the full-quarter adverse impact of the pandemic. The company experienced margin contraction and incurred operating loss during the quarter. Further, this time too, the company could not come up with any guidance.
Zacks Rank and Stocks to Consider
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and West Pharmaceutical Services, Inc. (WST - Free Report) . While PerkinElmer sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and West Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion surpassed the consensus mark by 0.1%.
West Pharmaceuticals reported second-quarter 2020 adjusted EPS of $1.25, outpacing the Zacks Consensus Estimate of 91 cents. Revenues of $527.2 million surpassed the consensus estimate by 6.9%.
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Myriad Genetics' (MYGN) Q4 Loss Narrower Than Estimated
Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted loss per share of 31 cents for the fourth quarter of fiscal 2020 in contrast to earnings of 41 cents reported in the year-ago quarter. Adjusted loss per share was however narrower than the Zacks Consensus Estimate of a loss of 36 cents.
The quarter’s adjustments exclude one-time impairment charges on an intangible assets and goodwill tied to company acquisitions, certain impact related to COVID-19 expenses and the impact of Elevate 2020 program-related expenses, among others.
On a reported basis, earnings per share were 74 cents compared with the prior-year quarter’s earnings of 6 cents per share.
Overall, a sharp year-over-year decline in revenues stemming from the coronavirus impact through the second quarter affected the bottom line.
For the full-year, the company registered adjusted loss of 8 cents per share as against adjusted earnings of $1.67 per share in the year-ago period.
Revenues
Total revenues plunged 56.7% year over year to $93.2 million in the quarter under review. The figure also missed the Zacks Consensus Estimate by 2.3%. In the quarter, the company faced a significant challenge from the global pandemic and its impact on elective testing volume.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote
Fiscal 2020 total revenues were $638.6 million, marking a 25% decline from fiscal 2019.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $83.3 million, down 58% year over year.
Within this segment, Hereditary Cancer testing revenues fell 66% year over year to $39.9 million. Vectra testing revenues were $7.2 million, down 41% year over year.
Further, GeneSight testing revenues fell 71% year over year to $8.5 million in the reported quarter. Prolaris tests raked in revenues of $4.5 million, down 29% year over year. Prenatal testing revenues came in at $16.6 million, down 34%.
EndoPredict testing revenues were down 27% year over year to $2.2 million. Other testing revenues surged 175% to $4.4 million year on year.
Pharmaceutical and clinical service revenues in the quarter under review totaled $9.9 million, down 47% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 1589 basis points (bps) to 60.6%.
Research and development (R&D) expenses fell 16.7% year over year to $17.4 million. Selling, general and administrative (SG&A) expenses declined 28.3% to $107.4 million in the reported quarter.
Adjusted operating loss was $68.3 million compared with adjusted operating loss of $5.9 million in the year-ago quarter.
Financial Position
Myriad Genetics exited fiscal 2020 with cash and cash equivalents of $163.7 million compared with $121 million at the end of the third quarter of fiscal 2020. Long-term debt at the end of the fiscal was $224.4 million compared with $225.2 million at the end of the third quarter.
Cumulative cash flow from operating activities at the end of the fourth quarter was $60.7 million compared with $83.7 million at the end of the year-ago period.
2021 Guidance
Given the difficulty in predicting the future business trend, the company has not provided fiscal year 2021 financial guidance
Our View
Myriad Genetics exited fourth-quarter fiscal 2020 on a dismal note. Although adjusted loss was narrower than the Zacks Consensus Estimate, the company saw a year-over-year decline in the top and the bottom lines. Barring Other Testing revenues, sales in each of the operating segments plummeted in the quarter owing to the full-quarter adverse impact of the pandemic. The company experienced margin contraction and incurred operating loss during the quarter. Further, this time too, the company could not come up with any guidance.
Zacks Rank and Stocks to Consider
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and West Pharmaceutical Services, Inc. (WST - Free Report) . While PerkinElmer sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and West Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion surpassed the consensus mark by 0.1%.
West Pharmaceuticals reported second-quarter 2020 adjusted EPS of $1.25, outpacing the Zacks Consensus Estimate of 91 cents. Revenues of $527.2 million surpassed the consensus estimate by 6.9%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>