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Why Is Myriad (MYGN) Up 8.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Myriad Genetics (MYGN - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Myriad 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 catalysts.
Myriad Genetics' Q1 Earnings & Revenues Top Estimates
Myriad Genetics reported adjusted loss per share of 15 cents for the first quarter of fiscal 2021 in contrast to earnings of 2 cents reported in the year-ago quarter. Adjusted loss per share was, however, narrower than the Zacks Consensus Estimate of a loss of 33 cents.
The quarter’s adjustments exclude one-time impairment charges from intangible assets and goodwill tied to company acquisitions, certain COVID-19-related expenses and the impact of Elevate 2020 program-related expenses, among others.
GAAP loss per share was 20 cents narrower than the prior-year quarter’s loss of 28 cents per share.
Overall, a sharp year-over-year decline in revenues stemming from the pandemic-related challenges affected the bottom line.
Revenues
Total revenues plunged 22.1% year over year to $145.2 million in the quarter under review. The figure, however, exceeded the Zacks Consensus Estimate by 7.9%. The company, despite facing a significant challenge from the global pandemic and its impact on elective testing volume, witnessed recovery in elective procedure trends and improved execution.
Notably, Myriad Genetics registered a 56% improvement in revenues on a sequential basis.
Total test volumes in the quarter was 209,000, reflecting a plunge of 12% year over year. However, volumes improved 40% on a sequential basis.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $135.7 million, down 21.1% year over year.
Within this segment, Hereditary Cancer testing revenues fell 22.9% year over year to $80.6 million. Vectra testing revenues were $9.1 million, down 17.3% year over year.
Further, GeneSight testing revenues fell 47.6% year over year to $11.9 million in the reported quarter. Prolaris tests raked in revenues of $6.4 million, down 1.5% year over year. Prenatal testing revenues came in at $16.5 million, down 29.8%.
EndoPredict testing revenues were, however, up 21.7% year over year to $2.8 million. Other testing revenues surged 200% to $0.6 million year on year. myChoice CDx testing revenues were up by a stupendous 500% year over year to $7.8 million.
Pharmaceutical and clinical service revenues in the quarter under review totaled $9.5 million, down 33.6% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 376 basis points (bps) to 69.6%.
R&D expenses fell 17.4% year over year to $17.6 million. SG&A expenses declined 8.4% to $124.1 million in the reported quarter.
Adjusted operating loss was $40.7 million compared with adjusted operating loss of $20.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the first quarter of fiscal 2021 with cash and cash equivalents of $118.3 million compared with $163.7 million at the end of fiscal 2020. Long-term debt at the end of the first quarter of fiscal 2021 was $224.6 million compared with $224.4 million at the end of fiscal 2020.
Net cash used in operating activities at the end of the first quarter of fiscal 2021 was $59.3 million compared with net operating cash inflow of $15.8 million a year ago.
Guidance
Given the difficulty in predicting the future business trend, the company has not provided any financial guidance for the six-month transition period ending December 31.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -19.49% due to these changes.
VGM Scores
At this time, Myriad has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Myriad has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Myriad (MYGN) Up 8.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Myriad Genetics (MYGN - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Myriad 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 catalysts.
Myriad Genetics' Q1 Earnings & Revenues Top Estimates
Myriad Genetics reported adjusted loss per share of 15 cents for the first quarter of fiscal 2021 in contrast to earnings of 2 cents reported in the year-ago quarter. Adjusted loss per share was, however, narrower than the Zacks Consensus Estimate of a loss of 33 cents.
The quarter’s adjustments exclude one-time impairment charges from intangible assets and goodwill tied to company acquisitions, certain COVID-19-related expenses and the impact of Elevate 2020 program-related expenses, among others.
GAAP loss per share was 20 cents narrower than the prior-year quarter’s loss of 28 cents per share.
Overall, a sharp year-over-year decline in revenues stemming from the pandemic-related challenges affected the bottom line.
Revenues
Total revenues plunged 22.1% year over year to $145.2 million in the quarter under review. The figure, however, exceeded the Zacks Consensus Estimate by 7.9%. The company, despite facing a significant challenge from the global pandemic and its impact on elective testing volume, witnessed recovery in elective procedure trends and improved execution.
Notably, Myriad Genetics registered a 56% improvement in revenues on a sequential basis.
Total test volumes in the quarter was 209,000, reflecting a plunge of 12% year over year. However, volumes improved 40% on a sequential basis.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $135.7 million, down 21.1% year over year.
Within this segment, Hereditary Cancer testing revenues fell 22.9% year over year to $80.6 million. Vectra testing revenues were $9.1 million, down 17.3% year over year.
Further, GeneSight testing revenues fell 47.6% year over year to $11.9 million in the reported quarter. Prolaris tests raked in revenues of $6.4 million, down 1.5% year over year. Prenatal testing revenues came in at $16.5 million, down 29.8%.
EndoPredict testing revenues were, however, up 21.7% year over year to $2.8 million. Other testing revenues surged 200% to $0.6 million year on year. myChoice CDx testing revenues were up by a stupendous 500% year over year to $7.8 million.
Pharmaceutical and clinical service revenues in the quarter under review totaled $9.5 million, down 33.6% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 376 basis points (bps) to 69.6%.
R&D expenses fell 17.4% year over year to $17.6 million. SG&A expenses declined 8.4% to $124.1 million in the reported quarter.
Adjusted operating loss was $40.7 million compared with adjusted operating loss of $20.2 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the first quarter of fiscal 2021 with cash and cash equivalents of $118.3 million compared with $163.7 million at the end of fiscal 2020. Long-term debt at the end of the first quarter of fiscal 2021 was $224.6 million compared with $224.4 million at the end of fiscal 2020.
Net cash used in operating activities at the end of the first quarter of fiscal 2021 was $59.3 million compared with net operating cash inflow of $15.8 million a year ago.
Guidance
Given the difficulty in predicting the future business trend, the company has not provided any financial guidance for the six-month transition period ending December 31.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -19.49% due to these changes.
VGM Scores
At this time, Myriad has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Myriad has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.