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Exact Sciences Corporation (EXAS - Free Report) reported a net loss of 45 cents per share in second-quarter 2023, narrower than a net loss of 94 cents in the year-ago quarter and the Zacks Consensus Estimate of a loss of 50 cents.
Revenues in Detail
Second-quarter consolidated revenues were $622.1 million, up 19.3% year over year. The metric exceeded the Zacks Consensus Estimate by 3.9%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $462.8 million. The figure increased 31% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption and traction within health systems.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $157.2 million, up 2% year over year. Growth was 7%, excluding the sale of the company’s prostate business and foreign exchange headwinds.
Revenues from COVID-19 testing totaled $2 million, down 84% year over year.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 26.4% to $465.1 million. The gross margin expanded 248 basis points (bps) to 74.8%.
Research and development expenses dropped 1.9% year over year to $104.1 million. Sales and marketing expenses fell 18.3% to $176.5 million. General and administrative expenses rose 30.9% year over year to $237.9 million.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Adjusted operating expenses were $518.6 million in the second quarter, up 2.9% year over year. Adjusted operating loss totaled $53.4 million, narrower than the year-ago operating loss of $126.7 million.
Financial Update
Exact Sciences exited the second quarter of 2023 with cash and cash equivalents and marketable securities of $604.4 million compared with $698.6 million at the end of the first quarter of 2023.
The company has no long-term debt on its balance sheet at the end of the second quartrer.
2023 View
The company raised its 2023 revenue guidance to $2.441-$2.466 billion (from the earlier guidance of $2.380-$2.420 billion). The Zacks Consensus Estimate for the same is pegged at $2.26 billion.
For 2023, the company now expects its Screening revenues in the range of $1.820-$1.835 billion ($1.770-$1.795 billion). The company expects Precision Oncology revenues in the range of $615-$625 million ($605-$620 million).
COVID-19 testing revenues are expected to be $5 million (unchanged).
Our Take
Exact Sciences exited the second quarter of 2023 with better-than-expected results. The quarterly loss narrowed significantly from the year-ago period. Robust revenues from the Screening and Precision Oncology segments contributed to the second-quarter top line. The company continues to witness broad-based momentum in Cologuard’s adoption and traction within health systems. The growing uptake of the company’s Oncotype DX Breast and therapy selection products are major advantages. The raised 2023 guidance is a major upside.
However, the decline in COVID-19 sales hampered top-line growth. The company incurred an operating loss in the quarter under review, raising apprehension.
Zacks Rank and Other Key Picks
Exact Sciences currently carries Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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Exact Sciences (EXAS) Beats on Q2 Earnings, Ups '23 Sales View
Exact Sciences Corporation (EXAS - Free Report) reported a net loss of 45 cents per share in second-quarter 2023, narrower than a net loss of 94 cents in the year-ago quarter and the Zacks Consensus Estimate of a loss of 50 cents.
Revenues in Detail
Second-quarter consolidated revenues were $622.1 million, up 19.3% year over year. The metric exceeded the Zacks Consensus Estimate by 3.9%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $462.8 million. The figure increased 31% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption and traction within health systems.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $157.2 million, up 2% year over year. Growth was 7%, excluding the sale of the company’s prostate business and foreign exchange headwinds.
Revenues from COVID-19 testing totaled $2 million, down 84% year over year.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 26.4% to $465.1 million. The gross margin expanded 248 basis points (bps) to 74.8%.
Research and development expenses dropped 1.9% year over year to $104.1 million. Sales and marketing expenses fell 18.3% to $176.5 million. General and administrative expenses rose 30.9% year over year to $237.9 million.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation price-consensus-eps-surprise-chart | Exact Sciences Corporation Quote
Adjusted operating expenses were $518.6 million in the second quarter, up 2.9% year over year. Adjusted operating loss totaled $53.4 million, narrower than the year-ago operating loss of $126.7 million.
Financial Update
Exact Sciences exited the second quarter of 2023 with cash and cash equivalents and marketable securities of $604.4 million compared with $698.6 million at the end of the first quarter of 2023.
The company has no long-term debt on its balance sheet at the end of the second quartrer.
2023 View
The company raised its 2023 revenue guidance to $2.441-$2.466 billion (from the earlier guidance of $2.380-$2.420 billion). The Zacks Consensus Estimate for the same is pegged at $2.26 billion.
For 2023, the company now expects its Screening revenues in the range of $1.820-$1.835 billion ($1.770-$1.795 billion). The company expects Precision Oncology revenues in the range of $615-$625 million ($605-$620 million).
COVID-19 testing revenues are expected to be $5 million (unchanged).
Our Take
Exact Sciences exited the second quarter of 2023 with better-than-expected results. The quarterly loss narrowed significantly from the year-ago period. Robust revenues from the Screening and Precision Oncology segments contributed to the second-quarter top line. The company continues to witness broad-based momentum in Cologuard’s adoption and traction within health systems. The growing uptake of the company’s Oncotype DX Breast and therapy selection products are major advantages. The raised 2023 guidance is a major upside.
However, the decline in COVID-19 sales hampered top-line growth. The company incurred an operating loss in the quarter under review, raising apprehension.
Zacks Rank and Other Key Picks
Exact Sciences currently carries Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.