Yahoo Finance Myriad (MYGN) Down 5.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Myriad Genetics (MYGN). Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Myriad due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Myriad Genetics Posts Narrower-Than-Estimate Loss in Q1
Myriad Genetics 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -14.13% due to these changes.
VGM Scores
At this time, Myriad has an average Growth Score of C, a grade with the same score on the momentum front. 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 D. 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 indicates a downward shift. Notably, Myriad has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Myriad belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Emergent Biosolutions (EBS), has gained 51.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Emergent Biosolutions reported revenues of $300.4 million in the last reported quarter, representing a year-over-year change of +82%. EPS of $0.59 for the same period compares with -$3.17 a year ago.
For the current quarter, Emergent Biosolutions is expected to post a loss of $0.97 per share, indicating a change of +8.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Emergent Biosolutions has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Myriad Genetics, Inc. (MYGN) : Free Stock Analysis Report
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