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Myriad Genetics (MYGN) Reports Loss in Q4, Gross Margin Improves
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Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted loss per share of 2 cents for the fourth quarter of 2021, in line with the Zacks Consensus Estimate. This compares to a loss of 12 cents reported a year ago.
The quarter’s adjustments exclude certain acquisition-amortization of intangible asset expenses and equity compensation, among others.
GAAP loss per share was 10 cents compared with the prior-year quarter’s loss of 50 cents.
For the full year, adjusted earnings per share (EPS) was 2 cents, improving from the year-ago net loss of 66 cents. The metric was in line with the Zacks Consensus Estimate.
Revenues
Total revenues rose 4% year over year to $160.8 million in the quarter under review. The figure lagged the Zacks Consensus Estimate by 0.9%.
Excluding divested business revenues, RBM, Autoimmune and myPath, fourth-quarter revenues increased 19% year over year.
Total test volumes in the quarter were 237,000, reflecting a rise of 13% year over year (excluding divested businesses). However, sequentially volume declined 5%, impacted by constraints in access to healthcare providers and staffing challenges due to the pandemic.
Full-year revenues were $690.6 million, reflecting a 23.9% increase from the year-ago period. Revenues missed the Zacks Consensus Estimate by 0.2%.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $160.8 million, up 12% year over year.
Within this segment, Hereditary Cancer testing revenues fell 5% year over year to $74.8 million. Pharmacogenomics testing revenues were $29.4 million, up 63% year over year.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Tumor Profiling testing revenues rose 57% year over year to $26.5 million. Prenatal testing revenues came in at $30.1 million, up 43%.
Margin Trends
Gross margin in the quarter under review expanded 198 basis points (bps) to 71.5%.
Research and development expenses contracted 8.8% year over year to $16.6 million. Selling, general and administrative expenses fell 7.3% to $127.5 million in the reported quarter.
Adjusted operating loss was $29.1 million compared with an adjusted operating loss of $48.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited 2021 with cash and cash equivalents of $258.4 million compared with $117 million at the end of 2020. However, the company has no debt on its balance sheet at the end of 2021.
Cumulative net cash provided by operating activities at the end of 2021 was $18.2 million compared with the year-ago cumulative net cash used by operating activities of $26.9 million.
Guidance
The company has initiated its 2022 guidance.
For 2022, the company expects revenues in the range of $670-$700 million. The Zacks Consensus Estimate for the same is pegged at $682.2 million.
Adjusted EPS is expected in the band of break-even level to 20 cents. The Zacks Consensus Estimate for the metric is pegged at 23 cents.
Our View
Myriad Genetics exited fourth-quarter 2021 with lower-than-expected revenues. The company incurred operating losses during the quarter. The company witnessed increased inflationary pressure and labor costs due to staffing constraints and competition for talent as well as increased material costs due to global supply-chain disruption in the quarter. In addition, volumes at the end of the quarter and into January were negatively impacted by the Omicron variant, which significantly disrupted physician office access and limited. On a positive note, the company registered revenue growth year over year. The spectacular improvement in Pharmacogenomics testing revenues along with growth in tumor profiling and GeneSight test volumes looks encouraging. Gross margin expansion looks impressive as well.
Zacks Rank and Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are McKesson Corporation (MCK - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% compared with the industry’s 4.7% growth in the past year.
Henry Schein, carrying a Zacks Rank #1, reported fourth-quarter 2021 adjusted earnings of $1.07 per share, which beat the Zacks Consensus Estimate by 18.9%. Revenues of $3.33 billion outpaced the consensus mark by 4.7%.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
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Myriad Genetics (MYGN) Reports Loss in Q4, Gross Margin Improves
Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted loss per share of 2 cents for the fourth quarter of 2021, in line with the Zacks Consensus Estimate. This compares to a loss of 12 cents reported a year ago.
The quarter’s adjustments exclude certain acquisition-amortization of intangible asset expenses and equity compensation, among others.
GAAP loss per share was 10 cents compared with the prior-year quarter’s loss of 50 cents.
For the full year, adjusted earnings per share (EPS) was 2 cents, improving from the year-ago net loss of 66 cents. The metric was in line with the Zacks Consensus Estimate.
Revenues
Total revenues rose 4% year over year to $160.8 million in the quarter under review. The figure lagged the Zacks Consensus Estimate by 0.9%.
Excluding divested business revenues, RBM, Autoimmune and myPath, fourth-quarter revenues increased 19% year over year.
Total test volumes in the quarter were 237,000, reflecting a rise of 13% year over year (excluding divested businesses). However, sequentially volume declined 5%, impacted by constraints in access to healthcare providers and staffing challenges due to the pandemic.
Full-year revenues were $690.6 million, reflecting a 23.9% increase from the year-ago period. Revenues missed the Zacks Consensus Estimate by 0.2%.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $160.8 million, up 12% year over year.
Within this segment, Hereditary Cancer testing revenues fell 5% year over year to $74.8 million. Pharmacogenomics testing revenues were $29.4 million, up 63% year over year.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote
Tumor Profiling testing revenues rose 57% year over year to $26.5 million. Prenatal testing revenues came in at $30.1 million, up 43%.
Margin Trends
Gross margin in the quarter under review expanded 198 basis points (bps) to 71.5%.
Research and development expenses contracted 8.8% year over year to $16.6 million. Selling, general and administrative expenses fell 7.3% to $127.5 million in the reported quarter.
Adjusted operating loss was $29.1 million compared with an adjusted operating loss of $48.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited 2021 with cash and cash equivalents of $258.4 million compared with $117 million at the end of 2020. However, the company has no debt on its balance sheet at the end of 2021.
Cumulative net cash provided by operating activities at the end of 2021 was $18.2 million compared with the year-ago cumulative net cash used by operating activities of $26.9 million.
Guidance
The company has initiated its 2022 guidance.
For 2022, the company expects revenues in the range of $670-$700 million. The Zacks Consensus Estimate for the same is pegged at $682.2 million.
Adjusted EPS is expected in the band of break-even level to 20 cents. The Zacks Consensus Estimate for the metric is pegged at 23 cents.
Our View
Myriad Genetics exited fourth-quarter 2021 with lower-than-expected revenues. The company incurred operating losses during the quarter. The company witnessed increased inflationary pressure and labor costs due to staffing constraints and competition for talent as well as increased material costs due to global supply-chain disruption in the quarter. In addition, volumes at the end of the quarter and into January were negatively impacted by the Omicron variant, which significantly disrupted physician office access and limited. On a positive note, the company registered revenue growth year over year. The spectacular improvement in Pharmacogenomics testing revenues along with growth in tumor profiling and GeneSight test volumes looks encouraging. Gross margin expansion looks impressive as well.
Zacks Rank and Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are McKesson Corporation (MCK - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% compared with the industry’s 4.7% growth in the past year.
Henry Schein, carrying a Zacks Rank #1, reported fourth-quarter 2021 adjusted earnings of $1.07 per share, which beat the Zacks Consensus Estimate by 18.9%. Revenues of $3.33 billion outpaced the consensus mark by 4.7%.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.