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Exact Sciences (EXAS) Provides Q4 Expectations, Stock Falls

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Exact Sciences Corp. (EXAS - Free Report) recently announced preliminary revenue results for fourth quarter and full-year 2019. The company is slated to release detailed financial results for the same period in February.

Following the release, the stock lost 0.3% reaching $79.36 at the close of trading on Jan 16.

For the to-be-reported quarter, Exact Sciences expects total revenues within $294-$296 million. Notably, the Zacks Consensus Estimate for the same is currently pegged at $295.7 million.


 

For the year, total revenues are expected in the band of $874.5-$876.5 million, per the preliminary announcement. This is higher than the company’s earlier guidance of $802-$810 million as well as the Zacks Consensus Estimate of $808.7 million.

For 2019, total revenues are likely to have risen substantially on expectation of growth in Cologuard and Oncotype DX (two of the company’s strongest brands in cancer diagnostics and testing). Also, Screening (revenues from Cologuard and Biomatrica products) and Precision Oncology (global Oncotype DX product) proforma revenues are projected to see strong growth.

Latest Q4 Projections

Cologuard and Oncotype DX are expected to have performed impressively in the to-be-reported quarter with volume increases of 477,000 (up 63%) and 41,000 (up 14%) respectively.

For the quarter, Screening revenues are likely to be around $229-$230 million, indicating an increase of 61% year over year.

Precision Oncology revenues for the period between Nov 8 and Dec 31, 2019 are likely to be $65-$66 million, following the completion of the Genomic Health acquisition. Precision Oncology proforma revenues for the full fourth quarter are expected within $118-$119 million (suggesting 13% rise), provided the Genomic Health buyout is the only driving factor.

Price Performance

Shares of Exact Sciences have gained 13.9% in the past year against the industry’s 2.8% fall.

Zacks Rank & Other Key Picks

Currently, the company carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , Hill-Rom Holdings, Inc. and Medtronic plc (MDT - Free Report) .

Haemonetics, currently flaunting a Zacks Rank #1 (Strong Buy), has a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. The company presently carries a Zacks Rank #2.

Medtronic’s long-term earnings growth rate is estimated at 7.4%. It currently carries a Zacks Rank #2.

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