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Myriad Genetics (MYGN) Beats on Q1 Earnings and Revenues

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Myriad Genetics, Inc. (MYGN - Free Report) reported adjusted loss per share of 6 cents for the first quarter of 2021, narrower than the loss of 8 cents reported in the year-ago quarter. Adjusted loss per share was also narrower than the Zacks Consensus Estimate of a loss of 10 cents per share.

The quarter’s adjustments exclude certain acquisition-amortization of intangible asset expenses and equity compensation, among others.

GAAP loss per share was 52 cents, narrower than the prior-year quarter’s loss of $1.55 per share.

For investors’ note, Myriad Genetics’ management had approved a change in its fiscal year ending on the last day of June to a calendar year ending on the last day of December of each year, effective Jan 1, 2021.

Revenues

Total revenues surged 5.5% year over year to $173.1 million in the quarter under review. The figure exceeded the Zacks Consensus Estimate by 11.5%. The company, despite facing a significant challenge from the global pandemic and experiencing typical seasonality, witnessed strong sequential increases in its test volume and overall average selling prices during the quarter.

Notably, Myriad Genetics registered a 12% improvement in revenues on a sequential basis.

Total test volumes in the quarter were 236,000, reflecting a plunge of 1% year over year. However, volumes improved 5% on a sequential basis.

Myriad Genetics, Inc. Price, Consensus and EPS Surprise

 

Myriad Genetics, Inc. Price, Consensus and EPS Surprise

Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote

Quarter in Detail

Segment-wise, Molecular Diagnostic tests recorded total revenues of $159.6 million, up 6% year over year.

Within this segment, Hereditary Cancer testing revenues fell 10.7% year over year to $76.1 million. GeneSight testing revenues were $17.6 million, down 13.7% year over year.

Other testing revenues, however, remained unchanged at $0.5 million year on year.

EndoPredict testing revenues were up 17.1% year over year to $4.1 million. myChoice CDx testing revenues were up by a huge 154.5% year over year to $8.4 million. Prolaris tests raked in revenues of $18.5 million, up a stupendous 172.1% year over year. Prenatal testing revenues came in at $23.7 million, up 16.7%. Vectra testing revenues were $10.7 million, up 1.9% year over year.

Pharmaceutical and clinical service revenues in the quarter under review totaled $13.5 million, flat year-over-year.

Margin Trends

Gross margin in the quarter under review expanded 149 basis points (bps) to 70.9%.

Research and development expenses rose 17.3% year over year to $23.1 million. Selling, general and administrative expenses climbed 9.5% to $145.5 million in the reported quarter.

Adjusted operating loss was $45.8 million compared with adjusted operating loss of $38.7 million in the year-ago quarter.

Financial Position

Myriad Genetics exited the first quarter of 2021 with cash and cash equivalents of $148.9 million compared with $117 million at the end of the sequentially last-reported quarter. Long-term debt at the end of the first quarter of 2021 was $154 million, compared with $224.8 million at the end of the sequentially last-reported quarter.

Net cash provided by operating activities at the end of the first quarter of 2021 was $71.8 million compared with net cash provided by operating activities of $16.8 million in the year-ago period.

Guidance

Given the difficulty in predicting the future business trend, the company has not provided any financial guidance for either the second quarter ending June 30 or the full year.

Our View

Myriad Genetics exited first-quarter 2021 with better-than-expected results. Although the overall bottom-line performance was dismal, the sequential improvement in revenues is impressive. The stupendous improvement in Prolaris and myChoice CDx testing revenues, along with improvements in EndoPredict, Vectra and Prenatal testing revenues, looks encouraging. Sequential improvement in overall revenues and testing volumes amid the pandemic-led business disruptions bode well for the company. Gross margin expansion also bodes well.

However, decline in Hereditary Cancer and GeneSight testing revenues, with a flat Other testing revenues, are disappointing. The company incurred operating loss during the quarter, which is also discouraging. The company could not come up with any guidance this time as well, thus raising apprehensions.

Zacks Rank and Key Picks

Myriad Genetics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , CONMED Corporation (CNMD - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) .

Boston Scientific reported first-quarter 2021 adjusted EPS of 37 cents, beating the Zacks Consensus Estimate by 23.3%. Net revenues of $2.75 billion outpaced the consensus estimate by 5.3%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CONMED, a Zacks Rank #2 company, reported first-quarter 2021 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 46.5%. Revenues of $232.7 million outpaced the consensus mark by 7%.

HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion exceeded the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2.

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