We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exact Sciences' (EXAS) Q1 Earnings Fall Y/Y, Margin Expands
Read MoreHide Full Article
Exact Sciences Corporation (EXAS - Free Report) announced first-quarter 2020 results, wherein loss per share was 71 cents compared with loss per share of 66 cents reported a year ago.
Revenues in Detail
Following the completion of the Genomic Health business integration on Nov 8, first-quarter consolidated revenues surged a stupendous 114.6% year over year to $347.8 million. The metric edged past the Zacks Consensus Estimate by 0.1%.
Screening revenues were $219.5 million, reflecting a year-over-year increase of 35%.
Precision Oncology revenues were $128.4 million following the closure of the Genomic Health buyout.
Exact Sciences Corporation Price, Consensus and EPS Surprise
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 123.3% to $266.2 million. Further, gross margin expanded 297 basis points (bps) to 76.5%.
Research and development expenses rose 36.9% year over year to $43.5 million. Sales and marketing expenses rose 84.5% to $167.7 million, whereas general and administrative expenses increased 78.7% to $113.9 million year over year.
Adjusted operating expenses were $325.2 million in the first quarter, up 74.4% year over year. Adjusted operating loss totaled $59 million compared with the year-ago operating loss of $67.3 million.
Financial Update
Exact Sciences exited the first quarter of 2020 with cash and cash equivalents of $701.1 million compared with $177.3 million at the end of 2019.
Outlook
Exact Sciences is not certain about the extent of the coronavirus impact on its business and has hence not provided any update to its earlier-issued guidance for 2020.
Our Take
Following the acquisition of Genomic Health, Exact Sciences registered strong year-over-year growth in revenues in the first quarter. The company’s legacy Screening business saw robust growth on increased Cologuard volume. Expansion of gross margin in the reported quarter was encouraging as well.
The company’s revenues have not been much affected by the coronavirus-led economic crisis on continued strong demand for Cologuard, Oncotype DX, and Paradigm tests required for cancer treatment. The company’s labs in Madison, Redwood City and Phoenix continued to deliver critical care to patients during the pandemic. It also accelerated the launch of its telehealth site to minimize face-to-face interactions with health care providers during the outbreak.
However, the company’s Cologuard business witnessed lesser patient visits during the quarter. Further, Precision Oncology’s Oncotype DX breast test volumes in the United States have been low due to deferring of surgeries. International business was affected by COVID-19 which created weaker underlying conditions in certain geographies, resulting in a fall in test volumes and lesser physician office visits.
The company’s loss per share, rising expenses and loss from operations are concerning as well.
Zacks Rank and Other Stocks to Consider
Exact Sciences currently carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted earnings per share (EPS) of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Exact Sciences' (EXAS) Q1 Earnings Fall Y/Y, Margin Expands
Exact Sciences Corporation (EXAS - Free Report) announced first-quarter 2020 results, wherein loss per share was 71 cents compared with loss per share of 66 cents reported a year ago.
Revenues in Detail
Following the completion of the Genomic Health business integration on Nov 8, first-quarter consolidated revenues surged a stupendous 114.6% year over year to $347.8 million. The metric edged past the Zacks Consensus Estimate by 0.1%.
Screening revenues were $219.5 million, reflecting a year-over-year increase of 35%.
Precision Oncology revenues were $128.4 million following the closure of the Genomic Health buyout.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation price-consensus-eps-surprise-chart | Exact Sciences Corporation Quote
Margin
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 123.3% to $266.2 million. Further, gross margin expanded 297 basis points (bps) to 76.5%.
Research and development expenses rose 36.9% year over year to $43.5 million. Sales and marketing expenses rose 84.5% to $167.7 million, whereas general and administrative expenses increased 78.7% to $113.9 million year over year.
Adjusted operating expenses were $325.2 million in the first quarter, up 74.4% year over year. Adjusted operating loss totaled $59 million compared with the year-ago operating loss of $67.3 million.
Financial Update
Exact Sciences exited the first quarter of 2020 with cash and cash equivalents of $701.1 million compared with $177.3 million at the end of 2019.
Outlook
Exact Sciences is not certain about the extent of the coronavirus impact on its business and has hence not provided any update to its earlier-issued guidance for 2020.
Our Take
Following the acquisition of Genomic Health, Exact Sciences registered strong year-over-year growth in revenues in the first quarter. The company’s legacy Screening business saw robust growth on increased Cologuard volume. Expansion of gross margin in the reported quarter was encouraging as well.
The company’s revenues have not been much affected by the coronavirus-led economic crisis on continued strong demand for Cologuard, Oncotype DX, and Paradigm tests required for cancer treatment. The company’s labs in Madison, Redwood City and Phoenix continued to deliver critical care to patients during the pandemic. It also accelerated the launch of its telehealth site to minimize face-to-face interactions with health care providers during the outbreak.
However, the company’s Cologuard business witnessed lesser patient visits during the quarter. Further, Precision Oncology’s Oncotype DX breast test volumes in the United States have been low due to deferring of surgeries. International business was affected by COVID-19 which created weaker underlying conditions in certain geographies, resulting in a fall in test volumes and lesser physician office visits.
The company’s loss per share, rising expenses and loss from operations are concerning as well.
Zacks Rank and Other Stocks to Consider
Exact Sciences currently carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted earnings per share (EPS) of 2 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>