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Myriad Genetics (MYGN) Q1 Earnings: A Beat in the Cards?
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Myriad Genetics, Inc. (MYGN - Free Report) is scheduled to report first-quarter fiscal 2017 results on Nov 1, after the closing bell.
Last quarter, the company posted a negative earnings surprise of 5.26%. However, Myriad’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.38%.
Let’s see how things are shaping up prior to this announcement.
Our proven model shows that Myriad Genetics is likely to beat earnings because it has the right combination of two key components.
Zacks ESP: Myriad Genetics has an Earnings ESP of +4.00% as the Most Accurate estimate is pegged at 26 cents while the Zacks Consensus Estimate is lower at 25 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Myriad Genetics currently has a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
The combination of Myriad Genetics’ Zacks Rank #3 and +4.00% ESP makes us reasonably confident of an earnings beat.
What's Driving the Better-than-Expected Earnings?
During the first quarter, Myriad Genetics completed the acquisition of Assurex, which will boost the former’s preventive care business with the addition of Genesight products that have a market potential of $3 billion. Myriad Genetics expects revenues of approximately $50 million from GeneSight in fiscal 2017. The buyout will also help the company establish the foundation for its neuroscience business which is believed to be one of the highest growth areas for personalized medicine business.
The company closed fiscal 2016 on a promising note, with impressive revenue and earnings performances. This trend is expected to be maintained in fiscal 2017 as well.
Myriad Genetics continues to progress in the hereditary cancer segment. It has successfully completed the conversion to myRisk hereditary cancer assay among its targeted physicians. Recently, the U.S. Oncology Network announced the selection of Myriad Genetic Laboratories as its preferred provider laboratory for hereditary cancer testing.
On the companion diagnostic front, Myriad Genetics announced that its myChoice HRD test recognized more patients with ovarian cancer who may benefit from treatment with niraparib. This is expected to help the company cash in on the growing potential of the companion diagnostics market.
Management expects fiscal 2017 to be a year of investment for Myriad Genetics as it looks to expand its footprint with products like Vectra DA, Prolaris and GeneSight, integrate two major acquisitions including Sividon Diagnostics and Assurex Health, and also lay the foundation for its companion diagnostic portfolio.
Stocks to Consider
Here are a few other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Glaukos Corporation (GKOS - Free Report) has an earnings ESP of +200% and a Zacks Rank #1 (Strong Buy).
Invuity, Inc. has an earnings ESP of +8.07% and a Zacks Rank #2.
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Myriad Genetics (MYGN) Q1 Earnings: A Beat in the Cards?
Myriad Genetics, Inc. (MYGN - Free Report) is scheduled to report first-quarter fiscal 2017 results on Nov 1, after the closing bell.
Last quarter, the company posted a negative earnings surprise of 5.26%. However, Myriad’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.38%.
Let’s see how things are shaping up prior to this announcement.
MYRIAD GENETICS Price and EPS Surprise
MYRIAD GENETICS Price and EPS Surprise | MYRIAD GENETICS Quote
Why a Likely Positive Surprise?
Our proven model shows that Myriad Genetics is likely to beat earnings because it has the right combination of two key components.
Zacks ESP: Myriad Genetics has an Earnings ESP of +4.00% as the Most Accurate estimate is pegged at 26 cents while the Zacks Consensus Estimate is lower at 25 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Myriad Genetics currently has a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
The combination of Myriad Genetics’ Zacks Rank #3 and +4.00% ESP makes us reasonably confident of an earnings beat.
What's Driving the Better-than-Expected Earnings?
During the first quarter, Myriad Genetics completed the acquisition of Assurex, which will boost the former’s preventive care business with the addition of Genesight products that have a market potential of $3 billion. Myriad Genetics expects revenues of approximately $50 million from GeneSight in fiscal 2017. The buyout will also help the company establish the foundation for its neuroscience business which is believed to be one of the highest growth areas for personalized medicine business.
The company closed fiscal 2016 on a promising note, with impressive revenue and earnings performances. This trend is expected to be maintained in fiscal 2017 as well.
Myriad Genetics continues to progress in the hereditary cancer segment. It has successfully completed the conversion to myRisk hereditary cancer assay among its targeted physicians. Recently, the U.S. Oncology Network announced the selection of Myriad Genetic Laboratories as its preferred provider laboratory for hereditary cancer testing.
On the companion diagnostic front, Myriad Genetics announced that its myChoice HRD test recognized more patients with ovarian cancer who may benefit from treatment with niraparib. This is expected to help the company cash in on the growing potential of the companion diagnostics market.
Management expects fiscal 2017 to be a year of investment for Myriad Genetics as it looks to expand its footprint with products like Vectra DA, Prolaris and GeneSight, integrate two major acquisitions including Sividon Diagnostics and Assurex Health, and also lay the foundation for its companion diagnostic portfolio.
Stocks to Consider
Here are a few other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Glaukos Corporation (GKOS - Free Report) has an earnings ESP of +200% and a Zacks Rank #1 (Strong Buy).
Penumbra, Inc. (PEN - Free Report) has an earnings ESP of +45.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Invuity, Inc. has an earnings ESP of +8.07% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>