Exact Sciences Corporation ( EXAS Quick Quote EXAS - Free Report) announced preliminary revenue results for fourth-quarter 2020 (ended Dec 31, 2020) and full-year 2020 on Jan 10. Management will provide additional information in conjunction with the release of its financial results during its earnings call in February. Prelim Results at a Glance
Following an outstanding performance in the third quarter of 2020 despite the pandemic-led business challenges, the company has projected that total revenues in the fourth quarter are likely to be in the range of $464.5-$467.5 million. This reflects a significant uptick of 57.1-58.2% from the reported revenues of $295.6 million in the year-ago period.
The full-year top line is likely to be within $1.490-$1.493 billion, reflecting a significant surge of 70-70.4% from the year-ago reported revenues of $876.3 million.
On a segmental basis, Screening revenue for the fourth quarter is projected to lie within $249-$250 million, reflecting an increase of 9%.
Precision Oncology revenues are likely to be within $117-$118 million whereas COVID-19 testing revenues are expected to be in the range of $98.5-$99.5 million.
For investors’ note, fourth quarter and full year 2020 Screening revenue includes laboratory service revenue from Cologuard and revenue from Biomatrica products. Further, Precision Oncology includes laboratory service revenue from global Oncotype products.
Q4 in Our Eyes
The unrelenting spread of the second wave of the pandemic is likely to have contributed robustly to Exact Sciences’ COVID-19 testing revenues during the quarter, thus driving segmental revenues. The Precision Oncology arm is expected to maintain momentum on the back of recovery in mammogram volumes since the last-reported quarter.
The extension and amendment of the agreement between Exact Sciences and
Pfizer Inc. ( PFE Quick Quote PFE - Free Report) to promote the former’s Cologuard (announced in October 2020) is expected to have contributed to the company's top line in the fourth quarter. Share Price Movement
Shares of the company have gained 41.7% in the past three months compared with the
industry’s 10.6% growth and the S&P 500’s 9.9% rise. Zacks Rank & Key Picks
Exact Sciences currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are
Hologic, Inc. ( HOLX Quick Quote HOLX - Free Report) and IDEXX Laboratories, Inc. ( IDXX Quick Quote IDXX - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 17.4%. The company presently carries a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2 (Buy).
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