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MYGN Beats on Q3 Earnings and Revenues, Raises '24 EPS View

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Myriad Genetics, Inc. (MYGN - Free Report) reported third-quarter 2024 adjusted earnings of 6 cents per share, which beat the Zacks Consensus Estimate of 2 cents. The company reported a loss of 3 cents per share in the year-ago quarter.

Adjusted earnings exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Following the earnings announcement, MYGN’s share price remained unchanged at $17.64 in after-market trading yesterday.

MYGN’s Q3 Revenues

Total revenues rose 11% year over year to $213.3 million. The figure topped the Zacks Consensus Estimate by 1.7%. Testing volumes increased 6% year over year.

MYGN’s Q3 Revenues in Detail

Hereditary Cancer testing revenues rose 5% year over year to $90.5 million.

Pharmacogenomics testing revenues totaled $47.7 million, up 34% year over year.

Tumor Profiling testing revenues rose 5% year over year to $31.6 million.

Prenatal testing revenues came in at $43.5 million, up 10% year over year.

Margin Trends

The gross margin expanded 24 basis points (bps) to 70.2%.

Research and development expenses rose 18.8% year over year to $28.5 million. SG&A expenses increased 2.2% to $139.1 million in the reported quarter.

The adjusted operating loss was $17.8 million compared with a loss of $25.8 million in the year-ago quarter.

Financial Position

Myriad Genetics exited the third quarter of 2024 with cash and cash equivalents of $99.9 million compared with $92.4 million at the end of the second quarter.

Long-term debt amounted to $39 million compared with $38.8 million at the end of the second quarter.

The cumulative net cash used in operating activities at the end of the reported quarter was $15.3 million compared with $56.2 million in the year-ago period.

MYGN’s 2024 Guidance

Myriad Genetics provided an updated 2024 guidance.

The company now expects revenues to be in the range of $837-$843 million (earlier $835-$845 million), suggesting 11-12% growth over the prior-year level. The Zacks Consensus Estimate for the same is pegged at $850 million.

Adjusted earnings per share (EPS) are now expected to be in the range of 12-14 cents (up from the earlier projection of 8-12 cents). The Zacks Consensus Estimate for the same is pegged at 10 cents.

Myriad Genetics, Inc. Price, Consensus and EPS Surprise

Our Take

Myriad Genetics delivered better-than-expected earnings and revenues in the third quarter of 2024. The strong performance was driven by robust growth across all the product portfolios of the company. Average revenue per test improved across the product portfolio, benefiting from expanded coverage and ongoing efforts in revenue cycle management.

Notable highlights in the quarter include establishment of a number of additional research collaborations with leading cancer research institutions, including The University of Texas MD Anderson Cancer Center and the National Cancer Center Hospital East in Japan, regarding the use of the company's Precise MRD test for breast cancer patients. Also, Myriad Genetics expanded payor coverage for its several products, including GeneSight. 

The raised EPS guidance for the full year instill optimism among investors. On the flip side, the company’s operating loss during the quarter adds to the worry. 

MYGN’s Zacks Rank & Key Picks

MYGN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Quest Diagnostics (DGX - Free Report) and HealthEquity (HQY - Free Report) .

Phibro Animal Health reported fourth-quarter fiscal 2024 adjusted earnings of 41 cents per share, which topped the Zacks Consensus Estimate by 20.6%. Revenues of $273.2 million beat the Zacks Consensus Estimate by 4.1%. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PAHC’s fiscal 2025 earnings are expected to surge 31.9% compared with the industry’s 11.6% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.1%.

Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30 per share, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. 

DGX carries a Zacks Rank #2 (Buy) at present. DGX’s 2024 earnings are expected to surge 2.1% year over year. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.

HealthEquity, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2025 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate by 22.9%. Revenues of $299.9 million topped the Zacks Consensus Estimate by 5.4%.

HQY has an estimated long-term earnings growth rate of 28.2% compared with the industry’s 13.4%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.8%.

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