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Exact Sciences (EXAS) Up 7.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Exact Sciences (EXAS - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exact Sciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Exact Sciences Reports Narrower-Than-Expected Loss in Q2
Exact Sciences Corporation reported a net loss of 9 cents per share in second-quarter 2024, narrower than the year-ago loss of 45 cents per share. The figure beat the Zacks Consensus Estimate of a loss of 37 cents per share.
Q2 Revenues
Consolidated revenues totaled $699.3 million, up 12.4% on a reported basis and 13% on a core revenue basis. The figure beat the Zacks Consensus Estimate by 1.6%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard and PreventionGenetics, totaled $531.6 million. The figure increased 15% year over year. The upside can be primarily attributed to broad-based momentum in Cologuard adoption by healthcare providers.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $167.7 million, up 7% year over year and 6% on a core basis. The upside was propelled by Oncotype DX, which expanded 31% internationally.
The company did not recognize any revenues from COVID testing in the second quarter.
Margins
Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 9.5% year over year to $509.4 million. The gross margin contracted 191 basis points (bps) to 72.9%.
Research and development expenses rose 16.1% year over year to $120.9 million. Sales and marketing expenses moved up 4.9% to $185.3 million.
General and administrative expenses declined 15.2% year over year to $201.9 million.
Adjusted operating expenses were $508 million, down 2% year over year. Adjusted operating profit totaled $1.4 million against the year-ago operating loss of $53.5 million.
Financial Update
Exact Sciences exited the second quarter with cash and cash equivalents and marketable securities of $946.8 million compared with $652.1 million at the end of the first-quarter 2024.
2024 Guidance
The company maintained its 2024 revenue guidance.
Exact Sciences still expects total revenues for the full year to be in the range of $2.81-$2.85 billion. The Zacks Consensus Estimate for the same is pegged at $2.83 billion.
The company continues to expect Screening revenues in the range of $2.16-$2.18 billion.
Precision Oncology revenues are expected to be in the range of $655-$675 million.
The company raised the full-year adjusted EBITDA guidance to $335-$355 million (previously $325-$350 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Exact Sciences has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Exact Sciences has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Exact Sciences belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bristol Myers reported revenues of $12.2 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.07 for the same period compares with $1.75 a year ago.
For the current quarter, Bristol Myers is expected to post earnings of $1.58 per share, indicating a change of -21% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.
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Exact Sciences (EXAS) Up 7.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Exact Sciences (EXAS - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exact Sciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Exact Sciences Reports Narrower-Than-Expected Loss in Q2
Exact Sciences Corporation reported a net loss of 9 cents per share in second-quarter 2024, narrower than the year-ago loss of 45 cents per share. The figure beat the Zacks Consensus Estimate of a loss of 37 cents per share.
Q2 Revenues
Consolidated revenues totaled $699.3 million, up 12.4% on a reported basis and 13% on a core revenue basis. The figure beat the Zacks Consensus Estimate by 1.6%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard and PreventionGenetics, totaled $531.6 million. The figure increased 15% year over year. The upside can be primarily attributed to broad-based momentum in Cologuard adoption by healthcare providers.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $167.7 million, up 7% year over year and 6% on a core basis. The upside was propelled by Oncotype DX, which expanded 31% internationally.
The company did not recognize any revenues from COVID testing in the second quarter.
Margins
Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 9.5% year over year to $509.4 million. The gross margin contracted 191 basis points (bps) to 72.9%.
Research and development expenses rose 16.1% year over year to $120.9 million. Sales and marketing expenses moved up 4.9% to $185.3 million.
General and administrative expenses declined 15.2% year over year to $201.9 million.
Adjusted operating expenses were $508 million, down 2% year over year. Adjusted operating profit totaled $1.4 million against the year-ago operating loss of $53.5 million.
Financial Update
Exact Sciences exited the second quarter with cash and cash equivalents and marketable securities of $946.8 million compared with $652.1 million at the end of the first-quarter 2024.
2024 Guidance
The company maintained its 2024 revenue guidance.
Exact Sciences still expects total revenues for the full year to be in the range of $2.81-$2.85 billion. The Zacks Consensus Estimate for the same is pegged at $2.83 billion.
The company continues to expect Screening revenues in the range of $2.16-$2.18 billion.
Precision Oncology revenues are expected to be in the range of $655-$675 million.
The company raised the full-year adjusted EBITDA guidance to $335-$355 million (previously $325-$350 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Exact Sciences has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Exact Sciences has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Exact Sciences belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Bristol Myers reported revenues of $12.2 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.07 for the same period compares with $1.75 a year ago.
For the current quarter, Bristol Myers is expected to post earnings of $1.58 per share, indicating a change of -21% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.