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Why Is Myriad (MYGN) Down 6.5% 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 lost about 6.5% 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 Beats on Q2 Revenues, Earnings in Line
Myriad Genetics reported adjusted loss per share of 12 cents for the second quarter of fiscal 2021 in contrast to earnings of 24 cents reported in the year-ago quarter. Adjusted loss per share was, however, in line with the Zacks Consensus Estimate.
The quarter’s adjustments exclude one-time impairment charges from intangible assets and goodwill tied to company acquisitions, certain acquisition-amortization of intangible asset expenses and the impact of the Elevate 2020 program-related expenses, among others.
GAAP loss per share was 59 cents, wider than the prior-year quarter’s loss of 11 cents per share.
Revenues
Total revenues plunged 20.8% year over year to $154.6 million in the quarter under review. The figure, however, exceeded the Zacks Consensus Estimate by 4.1%. The company, despite facing a significant challenge from the global pandemic, witnessed recovery in its testing volume during the quarter.
Notably, Myriad Genetics registered a 6% improvement in revenues on a sequential basis.
Total test volumes in the quarter were 224,000, reflecting a plunge of 5% year over year. However, volumes improved 7% on a sequential basis.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $143.9 million, down 20.5% year over year.
Within this segment, Hereditary Cancer testing revenues fell 33.1% year over year to $78.7 million. Vectra testing revenues were $8.9 million, down 13.6% year over year. Further, GeneSight testing revenues fell 20% year over year to $18 million in the reported quarter.
Other testing revenues, however, remained unchanged at $0.3 million year on year.
EndoPredict testing revenues were, however, up a stupendous 150% year over year to $3.1 million. myChoice CDx testing revenues were up by 17.4% year over year to $5.4 million. Prolaris tests raked in revenues of $8.4 million, up 23.5% year over year. Prenatal testing revenues came in at $21.1 million, up 28.7%.
Pharmaceutical and clinical service revenues in the quarter under review totaled $10.7 million, down 23.6% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 504 bps to 69.5%. R&D expenses fell 3.2% year over year to $18.2 million. SG&A expenses declined 1% to $132.9 million in the reported quarter.
Adjusted operating loss was $43.6 million compared with adjusted operating loss of $7.6 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the second quarter of fiscal 2021 with cash and cash equivalents of $117 million compared with $118.3 million at the end of first quarter of fiscal 2021. Long-term debt at the end of the second quarter of fiscal 2021 was $224.8 million, compared with $224.6 million at the end of the first quarter of fiscal 2021.
Cumulative net cash used in operating activities at the end of the second quarter of fiscal 2021 was $73 million compared with net operating cash inflow of $13.9 million a year ago.
Guidance
Given the difficulty in predicting the future business trend, the company has not provided any financial guidance for either the fiscal 2021 third quarter ending March 31 or the full year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -112.9% 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
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.
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Why Is Myriad (MYGN) Down 6.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Myriad Genetics (MYGN - Free Report) . Shares have lost about 6.5% 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 Beats on Q2 Revenues, Earnings in Line
Myriad Genetics reported adjusted loss per share of 12 cents for the second quarter of fiscal 2021 in contrast to earnings of 24 cents reported in the year-ago quarter. Adjusted loss per share was, however, in line with the Zacks Consensus Estimate.
The quarter’s adjustments exclude one-time impairment charges from intangible assets and goodwill tied to company acquisitions, certain acquisition-amortization of intangible asset expenses and the impact of the Elevate 2020 program-related expenses, among others.
GAAP loss per share was 59 cents, wider than the prior-year quarter’s loss of 11 cents per share.
Revenues
Total revenues plunged 20.8% year over year to $154.6 million in the quarter under review. The figure, however, exceeded the Zacks Consensus Estimate by 4.1%. The company, despite facing a significant challenge from the global pandemic, witnessed recovery in its testing volume during the quarter.
Notably, Myriad Genetics registered a 6% improvement in revenues on a sequential basis.
Total test volumes in the quarter were 224,000, reflecting a plunge of 5% year over year. However, volumes improved 7% on a sequential basis.
Quarter in Detail
Segment-wise, Molecular Diagnostic tests recorded total revenues of $143.9 million, down 20.5% year over year.
Within this segment, Hereditary Cancer testing revenues fell 33.1% year over year to $78.7 million. Vectra testing revenues were $8.9 million, down 13.6% year over year. Further, GeneSight testing revenues fell 20% year over year to $18 million in the reported quarter.
Other testing revenues, however, remained unchanged at $0.3 million year on year.
EndoPredict testing revenues were, however, up a stupendous 150% year over year to $3.1 million. myChoice CDx testing revenues were up by 17.4% year over year to $5.4 million. Prolaris tests raked in revenues of $8.4 million, up 23.5% year over year. Prenatal testing revenues came in at $21.1 million, up 28.7%.
Pharmaceutical and clinical service revenues in the quarter under review totaled $10.7 million, down 23.6% on a year-over-year basis.
Margin Trends
Gross margin in the quarter under review contracted 504 bps to 69.5%.
R&D expenses fell 3.2% year over year to $18.2 million. SG&A expenses declined 1% to $132.9 million in the reported quarter.
Adjusted operating loss was $43.6 million compared with adjusted operating loss of $7.6 million in the year-ago quarter.
Financial Position
Myriad Genetics exited the second quarter of fiscal 2021 with cash and cash equivalents of $117 million compared with $118.3 million at the end of first quarter of fiscal 2021. Long-term debt at the end of the second quarter of fiscal 2021 was $224.8 million, compared with $224.6 million at the end of the first quarter of fiscal 2021.
Cumulative net cash used in operating activities at the end of the second quarter of fiscal 2021 was $73 million compared with net operating cash inflow of $13.9 million a year ago.
Guidance
Given the difficulty in predicting the future business trend, the company has not provided any financial guidance for either the fiscal 2021 third quarter ending March 31 or the full year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -112.9% 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
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.