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Myriad Genetics (MYGN) Q3 Earnings Top Estimates, Revenues Up
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Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted earnings per share (EPS) of 46 cents in the third quarter of fiscal 2019, up 35.3% year over year. Adjusted EPS beat the Zacks Consensus Estimate by 4.5%.
On a reported basis, EPS was 9 cents in comparison with 13 cents in the year-ago quarter.
Revenues
Total revenues were up 18.3% year over year to $216.6 million in the quarter under review. The figure, however, missed the Zacks Consensus Estimate by 0.8%.
Quarter in Detail
Segment-wise, Molecular diagnostic tests recorded total revenues of $200.5 million, up 18% year over year.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Within this segment, Hereditary Cancer testing revenues rose 4% to $117.6 million. EndoPredict testing revenues increased 22% year over year to $2.8 million in the quarter under review. Vectra testing revenues were $11.3 million, down 25% year over year while other testing revenues declined 19% to $1.7 million. Further, GeneSight testing revenues fell 3% year over year to $29.6 million in the reported quarter. Prolaris tests raked in revenues of $6.9 million, up 8% year over year. Prenatal testing revenues came in at $30.6 million.
Pharmaceutical and clinical service revenues in the quarter under review totaled $16.1 million, reflecting a year-over-year increase of 17%.
Margin Trends
Gross margin in the quarter under review expanded 165 basis points (bps) to 77.6%. Research and development (R&D) expenses rose 16.2% year over year (to $21.5 million) along with a 30.3% increase in selling, general and administrative (SG&A) expenses (to $140.6 million) in the reported quarter. Adjusted operating income was $5.9 million, down 53.2% year over year. The adjusted operating margin came in at 2.7%, showing a contraction of 416 bps.
Financial Position
Myriad Genetics exited third-quarter fiscal 2019 with cash, cash equivalents and marketable securities of $149.7 million compared with $165.4 million at the end of the preceding quarter. Year to date, net cash provided by operating activities came in at $52.2 million compared with $68 million in the year-ago period.
2019 Guidance
Myriad Genetics has updated the guidance for fiscal 2019 revenues. The company expects fiscal 2019 revenues to be $856 million, as compared to the earlier provided range of $855-$865 million. The Zacks Consensus Estimate for the metric is pegged at $862.43 million, higher than the projection.
On the bottom-line front, the company now expects adjusted EPS of $1.74 as compared to the previous guidance of $1.70-$1.75. The current Zacks Consensus Estimate for the metric is $1.74, in line with the current projection.
Management has also provided the guidance for the fourth quarter of fiscal 2019. The company estimates adjusted EPS of 48 cents on total revenues of $220 million. The Zacks Consensus Estimate for adjusted EPS stands at 49 cents, above the company’s guided figure. Our consensus estimate for revenues is $224.9 million, above the company’s guided figure.
Our View
Myriad Genetics exited third-quarter fiscal 2019 on a mixed note. The company observed strong year-over-year revenue growth in EndoPredict, Hereditary Cancer and Prolaris testing as well as pharmaceutical and clinical service segments. The diversified product range constitutes 76% of overall volume. We are upbeat about Myriad Genetics’ ongoing volume growth and expanding reimbursement. The expansion of gross margin in the reported quarter also raises optimism.
On the flip side, the company saw a decline in GeneSight and Vectra testing revenues.
Zacks Rank & Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion were in line with the consensus estimate.
DENTSPLY reported adjusted EPS of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Also, revenues of $218.4 million outshined the consensus mark of $213 million.
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Myriad Genetics (MYGN) Q3 Earnings Top Estimates, Revenues Up
Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted earnings per share (EPS) of 46 cents in the third quarter of fiscal 2019, up 35.3% year over year. Adjusted EPS beat the Zacks Consensus Estimate by 4.5%.
On a reported basis, EPS was 9 cents in comparison with 13 cents in the year-ago quarter.
Revenues
Total revenues were up 18.3% year over year to $216.6 million in the quarter under review. The figure, however, missed the Zacks Consensus Estimate by 0.8%.
Quarter in Detail
Segment-wise, Molecular diagnostic tests recorded total revenues of $200.5 million, up 18% year over year.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Myriad Genetics, Inc. Price, Consensus and EPS Surprise | Myriad Genetics, Inc. Quote
Within this segment, Hereditary Cancer testing revenues rose 4% to $117.6 million. EndoPredict testing revenues increased 22% year over year to $2.8 million in the quarter under review. Vectra testing revenues were $11.3 million, down 25% year over year while other testing revenues declined 19% to $1.7 million. Further, GeneSight testing revenues fell 3% year over year to $29.6 million in the reported quarter. Prolaris tests raked in revenues of $6.9 million, up 8% year over year. Prenatal testing revenues came in at $30.6 million.
Pharmaceutical and clinical service revenues in the quarter under review totaled $16.1 million, reflecting a year-over-year increase of 17%.
Margin Trends
Gross margin in the quarter under review expanded 165 basis points (bps) to 77.6%. Research and development (R&D) expenses rose 16.2% year over year (to $21.5 million) along with a 30.3% increase in selling, general and administrative (SG&A) expenses (to $140.6 million) in the reported quarter. Adjusted operating income was $5.9 million, down 53.2% year over year. The adjusted operating margin came in at 2.7%, showing a contraction of 416 bps.
Financial Position
Myriad Genetics exited third-quarter fiscal 2019 with cash, cash equivalents and marketable securities of $149.7 million compared with $165.4 million at the end of the preceding quarter. Year to date, net cash provided by operating activities came in at $52.2 million compared with $68 million in the year-ago period.
2019 Guidance
Myriad Genetics has updated the guidance for fiscal 2019 revenues. The company expects fiscal 2019 revenues to be $856 million, as compared to the earlier provided range of $855-$865 million. The Zacks Consensus Estimate for the metric is pegged at $862.43 million, higher than the projection.
On the bottom-line front, the company now expects adjusted EPS of $1.74 as compared to the previous guidance of $1.70-$1.75. The current Zacks Consensus Estimate for the metric is $1.74, in line with the current projection.
Management has also provided the guidance for the fourth quarter of fiscal 2019. The company estimates adjusted EPS of 48 cents on total revenues of $220 million. The Zacks Consensus Estimate for adjusted EPS stands at 49 cents, above the company’s guided figure. Our consensus estimate for revenues is $224.9 million, above the company’s guided figure.
Our View
Myriad Genetics exited third-quarter fiscal 2019 on a mixed note. The company observed strong year-over-year revenue growth in EndoPredict, Hereditary Cancer and Prolaris testing as well as pharmaceutical and clinical service segments. The diversified product range constitutes 76% of overall volume. We are upbeat about Myriad Genetics’ ongoing volume growth and expanding reimbursement. The expansion of gross margin in the reported quarter also raises optimism.
On the flip side, the company saw a decline in GeneSight and Vectra testing revenues.
Zacks Rank & Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks with solid results this earnings season are Stryker Corporation (SYK - Free Report) , DENTSPLY SIRONA (XRAY - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion were in line with the consensus estimate.
DENTSPLY reported adjusted EPS of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which exceeded the Zacks Consensus Estimate of 54 cents. Also, revenues of $218.4 million outshined the consensus mark of $213 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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