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Myriad Genetics (MYGN) Q2 Earnings Surpass, '24 Outlook Raised
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Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted earnings of 5 cents per share in the second quarter of 2024 compared to the Zacks Consensus Estimate of a loss of 1 cent per share. The reported figure also compares to a loss of 8 cents per share in the year-ago quarter.
The quarter’s adjustments exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization, among others.
Revenues
Total revenues rose 15.3% year over year to $211.5 million in the quarter under review. The figure topped the Zacks Consensus Estimate by 2.9%. Testing volumes increased 9% year over year.
Quarter in Detail
Hereditary Cancer testing revenues rose 19% year over year to $91.5 million.
Pharmacogenomics testing revenues were $43 million, up 22% year over year.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Tumor Profiling testing revenues fell 9% year over year to $32.6 million.
Prenatal testing revenues came in at $44.4 million, up 25% year over year.
Margin Trends
The gross margin in the quarter under review expanded 105 basis points (bps) to 69.6%.
Research and development expenses rose 27.8% year over year to $27.1 million. SG&A expenses increased 3% to $144.9 million in the reported quarter.
The adjusted operating loss was $24.9 million compared with $36.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the second quarter of 2024 with cash and cash equivalents of $92.4 million compared with $96.9 million at the end of the first quarter.
Long-term debt was $38.8 million compared with $38.7 million at the end of the first quarter.
The cumulative net cash used in operating activities at the end of the reported quarter was $16 million compared with the $34.1 million cash outflow in the year-ago period.
2024 Guidance
Myriad Genetics provided an updated 2024 outlook.
The company expects its revenues in the range of $835-$845 million (earlier $820-$840 million), suggesting 11-12% (previously 9%-11%) growth over 2023 revenues. The Zacks Consensus Estimate for the same is pegged at $834.2 million.
Adjusted earnings per share (EPS) are expected in the range of 8 cents-12 cents (previously flat to 5 cents). The Zacks Consensus Estimate for the same is pegged at 3 cents.
Meanwhile, the company also raised its long-term revenue growth target to 12%.
Our Take
Myriad Genetics delivered better-than-expected earnings and revenues in the second quarter of 2024. The performance across the portfolio was strong, highlighted by the market share gains in prenatal testing. Average revenue per test improved across the product portfolio, benefiting from expanded coverage and ongoing efforts in revenue cycle management.
In addition, the company continues to improve access and ease of use for its customers by accelerating electronic medical record integrations for new customers and making meaningful progress in its Labs of the Future initiative.
Notable highlights in the quarter include a collaboration with GSK aimed at improving access to homologous recombination deficiency diagnostic testing for high-grade serous ovarian cancer patients, the launch of the Universal Plus Panel for Foresight Carrier Screen and an agreement with QIAGEN to develop a globally distributable HRD test for global research and companion diagnostics applications. The revised guidance for the full year and the long-term revenue growth rate instill optimism.
Meanwhile, the decline in tumor profiling revenues reflected the ongoing challenges in the biopharma environment, a slow ramp of biopharma contracts executed in 2023 and constraints in the international business.
Zacks Rank and Key Picks
Myriad Genetics currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a third-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has an estimated long-term earnings growth rate of 16.1% in 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy), reported third-quarter 2024 earnings of $1.14, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an estimated earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2, reported a third-quarter adjusted EPS of $2.35, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion exceeded the Zacks Consensus Estimate by 0.5%.
DGX’s historical five-year earnings growth rate of 7.4% compared favorably with the industry’s 4.2%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 3.31%.
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Myriad Genetics (MYGN) Q2 Earnings Surpass, '24 Outlook Raised
Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted earnings of 5 cents per share in the second quarter of 2024 compared to the Zacks Consensus Estimate of a loss of 1 cent per share. The reported figure also compares to a loss of 8 cents per share in the year-ago quarter.
The quarter’s adjustments exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization, among others.
Revenues
Total revenues rose 15.3% year over year to $211.5 million in the quarter under review. The figure topped the Zacks Consensus Estimate by 2.9%. Testing volumes increased 9% year over year.
Quarter in Detail
Hereditary Cancer testing revenues rose 19% year over year to $91.5 million.
Pharmacogenomics testing revenues were $43 million, up 22% 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 fell 9% year over year to $32.6 million.
Prenatal testing revenues came in at $44.4 million, up 25% year over year.
Margin Trends
The gross margin in the quarter under review expanded 105 basis points (bps) to 69.6%.
Research and development expenses rose 27.8% year over year to $27.1 million. SG&A expenses increased 3% to $144.9 million in the reported quarter.
The adjusted operating loss was $24.9 million compared with $36.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the second quarter of 2024 with cash and cash equivalents of $92.4 million compared with $96.9 million at the end of the first quarter.
Long-term debt was $38.8 million compared with $38.7 million at the end of the first quarter.
The cumulative net cash used in operating activities at the end of the reported quarter was $16 million compared with the $34.1 million cash outflow in the year-ago period.
2024 Guidance
Myriad Genetics provided an updated 2024 outlook.
The company expects its revenues in the range of $835-$845 million (earlier $820-$840 million), suggesting 11-12% (previously 9%-11%) growth over 2023 revenues. The Zacks Consensus Estimate for the same is pegged at $834.2 million.
Adjusted earnings per share (EPS) are expected in the range of 8 cents-12 cents (previously flat to 5 cents). The Zacks Consensus Estimate for the same is pegged at 3 cents.
Meanwhile, the company also raised its long-term revenue growth target to 12%.
Our Take
Myriad Genetics delivered better-than-expected earnings and revenues in the second quarter of 2024. The performance across the portfolio was strong, highlighted by the market share gains in prenatal testing. Average revenue per test improved across the product portfolio, benefiting from expanded coverage and ongoing efforts in revenue cycle management.
In addition, the company continues to improve access and ease of use for its customers by accelerating electronic medical record integrations for new customers and making meaningful progress in its Labs of the Future initiative.
Notable highlights in the quarter include a collaboration with GSK aimed at improving access to homologous recombination deficiency diagnostic testing for high-grade serous ovarian cancer patients, the launch of the Universal Plus Panel for Foresight Carrier Screen and an agreement with QIAGEN to develop a globally distributable HRD test for global research and companion diagnostics applications. The revised guidance for the full year and the long-term revenue growth rate instill optimism.
Meanwhile, the decline in tumor profiling revenues reflected the ongoing challenges in the biopharma environment, a slow ramp of biopharma contracts executed in 2023 and constraints in the international business.
Zacks Rank and Key Picks
Myriad Genetics currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Abbott Laboratories, Inc. (ABT - Free Report) and Quest Diagnostics (DGX - Free Report) .
Intuitive Surgical reported a third-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has an estimated long-term earnings growth rate of 16.1% in 2024 compared with the industry’s 14.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 8.97%.
Abbott, carrying a Zacks Rank #2 (Buy), reported third-quarter 2024 earnings of $1.14, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%.
ABT has an estimated earnings growth rate of 10.1% for 2025 compared with the S&P 500’s 9.3%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 2.34%.
Quest Diagnostics, carrying a Zacks Rank #2, reported a third-quarter adjusted EPS of $2.35, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion exceeded the Zacks Consensus Estimate by 0.5%.
DGX’s historical five-year earnings growth rate of 7.4% compared favorably with the industry’s 4.2%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 3.31%.