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Myriad Genetics (MYGN) Posts Narrower-Than-Estimate Loss in Q1
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Myriad Genetics, Inc. (MYGN - Free Report) reported a loss of 1 cent per share in the first quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The figure improved from the year-ago quarter’s loss of 21 cents.
The quarter’s adjustments exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization.
Revenues
Total revenues rose 12% year over year to $202.2 million in the quarter under review. The figure topped the Zacks Consensus Estimate by 4.6%. Testing volumes rose 9% year over year.
Quarter in Detail
Hereditary Cancer testing revenues rose 16% year over year to $88.1 million.
Pharmacogenomics testing revenues were $38.9 million, up 21% year over year.
Tumor Profiling testing revenues fell 17% year over year to $30.9 million.
Prenatal testing revenues came in at $44.3 million, up 22% year over year.
Margin Trends
The gross margin in the quarter under review expanded 72 basis points (bps) to 68.1%.
Research and development expenses rose 10.7% year over year to $24.9 million. SG&A expenses fell 7.3% to $140.6 million in the reported quarter.
The adjusted operating loss was $27.9 million compared with $52.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited first-quarter 2024 with cash and cash equivalents of $96.9 million compared with $132.1 million at the end of fourth-quarter 2023. At the end of the first quarter, the long-term debt was $38.7 million compared with $38.5 million at the end of fourth-quarter 2023.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
The cumulative net cash used in operating activities at the end of the reported quarter was $18.6 million compared with the year-ago cumulative net operating cash outflow of $33.2 million.
2024 Guidance
Myriad Genetics reinstated its 2024 guidance.
The company expects its revenue in the range of $820-$840 million, suggesting 9-11% growth over 2023 revenues. The Zacks Consensus Estimate for the same is pegged at $827.7 million.
Adjusted earnings per share (EPS) are expected to be in the range of break-even to 5 cents. The Zacks Consensus Estimate for the same is pegged at 2 cents.
Our Take
Myriad Genetics exited the first quarter of 2024 with better-than-expected earnings and revenues. The company witnessed a strong testing volume improvement across all its businesses, with the prenatal testing franchise registering a 22% year-over-year increase. The average revenue per test across its product portfolio benefited from expanded coverage and ongoing efforts in revenue cycle management. The company also remains optimistic about the evolution of its product portfolio as it continues to produce additional clinical validation studies and move closer to the launch of new products.
During the first quarter, the company established a research collaboration with the National Cancer Center Hospital East in Japan to study the prognostic and predictive value of MRD testing using Myriad Genetics’ highly-sensitive test, Precise MRD. The company also advanced the integration of the recently acquired CLIA-certified laboratory and Precise Tumor and Liquid assays from Intermountain Precision Genomics. The expansion of gross margin looks encouraging.
However, foreign exchange headwinds and stiff competition are a concern.
Zacks Rank and Key Picks
Myriad Genetics currently carries Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported EPS of $3.20 in first-quarter 2024, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million increased 17.7% from the last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported EPS of $2.13 in first-quarter 2024, topping the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared with the industry’s 15.7%. In each of the trailing four quarters, the company delivered an average earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
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Myriad Genetics (MYGN) Posts Narrower-Than-Estimate Loss in Q1
Myriad Genetics, Inc. (MYGN - Free Report) reported a loss of 1 cent per share in the first quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The figure improved from the year-ago quarter’s loss of 21 cents.
The quarter’s adjustments exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization.
Revenues
Total revenues rose 12% year over year to $202.2 million in the quarter under review. The figure topped the Zacks Consensus Estimate by 4.6%. Testing volumes rose 9% year over year.
Quarter in Detail
Hereditary Cancer testing revenues rose 16% year over year to $88.1 million.
Pharmacogenomics testing revenues were $38.9 million, up 21% year over year.
Tumor Profiling testing revenues fell 17% year over year to $30.9 million.
Prenatal testing revenues came in at $44.3 million, up 22% year over year.
Margin Trends
The gross margin in the quarter under review expanded 72 basis points (bps) to 68.1%.
Research and development expenses rose 10.7% year over year to $24.9 million. SG&A expenses fell 7.3% to $140.6 million in the reported quarter.
The adjusted operating loss was $27.9 million compared with $52.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited first-quarter 2024 with cash and cash equivalents of $96.9 million compared with $132.1 million at the end of fourth-quarter 2023. At the end of the first quarter, the long-term debt was $38.7 million compared with $38.5 million at the end of fourth-quarter 2023.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote
The cumulative net cash used in operating activities at the end of the reported quarter was $18.6 million compared with the year-ago cumulative net operating cash outflow of $33.2 million.
2024 Guidance
Myriad Genetics reinstated its 2024 guidance.
The company expects its revenue in the range of $820-$840 million, suggesting 9-11% growth over 2023 revenues. The Zacks Consensus Estimate for the same is pegged at $827.7 million.
Adjusted earnings per share (EPS) are expected to be in the range of break-even to 5 cents. The Zacks Consensus Estimate for the same is pegged at 2 cents.
Our Take
Myriad Genetics exited the first quarter of 2024 with better-than-expected earnings and revenues. The company witnessed a strong testing volume improvement across all its businesses, with the prenatal testing franchise registering a 22% year-over-year increase. The average revenue per test across its product portfolio benefited from expanded coverage and ongoing efforts in revenue cycle management. The company also remains optimistic about the evolution of its product portfolio as it continues to produce additional clinical validation studies and move closer to the launch of new products.
During the first quarter, the company established a research collaboration with the National Cancer Center Hospital East in Japan to study the prognostic and predictive value of MRD testing using Myriad Genetics’ highly-sensitive test, Precise MRD. The company also advanced the integration of the recently acquired CLIA-certified laboratory and Precise Tumor and Liquid assays from Intermountain Precision Genomics. The expansion of gross margin looks encouraging.
However, foreign exchange headwinds and stiff competition are a concern.
Zacks Rank and Key Picks
Myriad Genetics currently carries Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Medpace (MEDP - Free Report) , ResMed (RMD - Free Report) and Encompass Health Corporation (EHC - Free Report) .
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported EPS of $3.20 in first-quarter 2024, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million increased 17.7% from the last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported EPS of $2.13 in first-quarter 2024, topping the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared with the industry’s 15.7%. In each of the trailing four quarters, the company delivered an average earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2 (Buy), reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.