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Exact Sciences (EXAS) Q4 Loss Narrows, Revenues Rise Y/Y
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Exact Sciences Corporation (EXAS - Free Report) reported a net loss of 27 cents per share for fourth-quarter 2023, a significant improvement from the year-ago loss of 72 cents per share as well as the Zacks Consensus Estimate of a loss of 53 cents.
Full-year net loss was $1.13 per share, narrower than the Zacks Consensus Estimate of a loss of $1.39. It also marked an improvement from a loss of $3.54 per share loss incurred in 2022.
Revenues in Detail
Fourth-quarter consolidated revenues were $646.9 million, up 17% (up 18% on a core revenue basis) year over year. The metric exceeded the Zacks Consensus Estimate by 2.4%.
Total revenues in 2023 were $2.49 billion, beating the Zacks Consensus Estimate by 0.8% and increasing 19.9% from 2022.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $486.7 million. The figure increased 21% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption by healthcare providers, with an all-time high of 172,000 providers ordering Cologuard during the fourth quarter.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $160.2 million, up 12% year over year and 11% on a core basis. Growth was led by Oncotype DX, which expanded 48% internationally.
The company did not recognize any revenues from COVID-19 testing in the fourth quarter against $6.04 million in the year-ago period.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 17% to $475 million. The gross margin expanded 4 basis points (bps) to 73.4%.
Research and development expenses rose 21.9% year over year to $114.9 million. Sales and marketing expenses fell 9.4% to $190.5 million. General and administrative expenses rose 13.7% year over year to $220.6 million.
Adjusted operating expenses were $525.9 million in the fourth quarter, up 5.5% year over year. Adjusted operating loss totaled $50.9 million, narrower than the year-ago operating loss of $92.5 million.
Financial Update
Exact Sciences exited the fourth quarter of 2023 with cash and cash equivalents and marketable securities of $777.6 million compared with $632.1 million at the end of 2022.
The company had no long-term debt on its balance sheet at the end of the fourth quarter.
2024 View
The company has provided its 2024 revenue guidance. Exact Sciences expects total revenues for the full year to be in the range of $2.81-$2.85 billion. The Zacks Consensus Estimate for the same is pegged at $2.82 billion.
For 2024, the company expects Screening revenues in the range of $2.155-$2.175 billion. The company expects Precision Oncology revenues in the range of $655-$675 million.
Our Take
Exact Sciences exited the fourth quarter of 2023 with better-than-expected results. Robust revenues from the Screening and Precision Oncology segments contributed to the fourth-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 is a major advantage.
However, the company incurred an operating loss in the quarter under review, raising apprehension.
Zacks Rank and Other Key Picks
Exact Sciences currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, also carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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Exact Sciences (EXAS) Q4 Loss Narrows, Revenues Rise Y/Y
Exact Sciences Corporation (EXAS - Free Report) reported a net loss of 27 cents per share for fourth-quarter 2023, a significant improvement from the year-ago loss of 72 cents per share as well as the Zacks Consensus Estimate of a loss of 53 cents.
Full-year net loss was $1.13 per share, narrower than the Zacks Consensus Estimate of a loss of $1.39. It also marked an improvement from a loss of $3.54 per share loss incurred in 2022.
Revenues in Detail
Fourth-quarter consolidated revenues were $646.9 million, up 17% (up 18% on a core revenue basis) year over year. The metric exceeded the Zacks Consensus Estimate by 2.4%.
Total revenues in 2023 were $2.49 billion, beating the Zacks Consensus Estimate by 0.8% and increasing 19.9% from 2022.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $486.7 million. The figure increased 21% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption by healthcare providers, with an all-time high of 172,000 providers ordering Cologuard during the fourth quarter.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation price-consensus-eps-surprise-chart | Exact Sciences Corporation Quote
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $160.2 million, up 12% year over year and 11% on a core basis. Growth was led by Oncotype DX, which expanded 48% internationally.
The company did not recognize any revenues from COVID-19 testing in the fourth quarter against $6.04 million in the year-ago period.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 17% to $475 million. The gross margin expanded 4 basis points (bps) to 73.4%.
Research and development expenses rose 21.9% year over year to $114.9 million. Sales and marketing expenses fell 9.4% to $190.5 million. General and administrative expenses rose 13.7% year over year to $220.6 million.
Adjusted operating expenses were $525.9 million in the fourth quarter, up 5.5% year over year. Adjusted operating loss totaled $50.9 million, narrower than the year-ago operating loss of $92.5 million.
Financial Update
Exact Sciences exited the fourth quarter of 2023 with cash and cash equivalents and marketable securities of $777.6 million compared with $632.1 million at the end of 2022.
The company had no long-term debt on its balance sheet at the end of the fourth quarter.
2024 View
The company has provided its 2024 revenue guidance. Exact Sciences expects total revenues for the full year to be in the range of $2.81-$2.85 billion. The Zacks Consensus Estimate for the same is pegged at $2.82 billion.
For 2024, the company expects Screening revenues in the range of $2.155-$2.175 billion. The company expects Precision Oncology revenues in the range of $655-$675 million.
Our Take
Exact Sciences exited the fourth quarter of 2023 with better-than-expected results. Robust revenues from the Screening and Precision Oncology segments contributed to the fourth-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 is a major advantage.
However, the company incurred an operating loss in the quarter under review, raising apprehension.
Zacks Rank and Other Key Picks
Exact Sciences currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, also carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.