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Why Is Exact Sciences (EXAS) Up 2.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Exact Sciences (EXAS - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exact Sciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Exact Sciences’ Q1 Earnings Fall Y/Y, Margin Expands
Exact Sciences 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -16.48% due to these changes.
VGM Scores
At this time, Exact Sciences has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Exact Sciences has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Exact Sciences (EXAS) Up 2.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Exact Sciences (EXAS - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exact Sciences due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Exact Sciences’ Q1 Earnings Fall Y/Y, Margin Expands
Exact Sciences 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -16.48% due to these changes.
VGM Scores
At this time, Exact Sciences has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Exact Sciences has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.