Exact Sciences Corporation
EXAS
is set to report second-quarter 2022 results on Aug 2, after the closing bell.
In the last reported quarter, the company reported a net loss of $1.04, which was narrower than the Zacks Consensus Estimate of a loss of $1.12. The company has surpassed earnings estimates on one occasion and missed in the other three, delivering an average negative surprise of 21.39%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
Exact Sciences’
Screening
segment’s second-quarter performance is expected to have benefited from a continued increase in Cologuard volume. Per the last-reported quarter’s earnings call, roughly 273,000 healthcare providers ordered Cologuard since its launch, with 9,000 new orders received in the first quarter. The segment is also likely to gain from revenue contributions from Cologuard rescreening in Q2. To address the substantial increase in colorectal cancer prevalence, the company made consistent efforts to raise awareness about screening individuals every three years, starting at age 45. Other initiatives like reaching physicians and staff in person, redesigning territories to enhance healthcare provider targets and reinforcing the urgent importance of screening through its mission to screen partnership with Katie Couric are likely to have fortified Cologuard adoption in the upcoming quarter. Further, robust sales contributions from the acquisition PreventionGenetics (in Jan 2022) are likely to have added to the company’s top line.
Exact Sciences Corporation Price and EPS Surprise
Exact Sciences Corporation price-eps-surprise
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Exact Sciences Corporation Quote
The Zacks Consensus Estimate for Screening revenues is pegged at $343 million, indicating 29.9% growth from the year-ago figure.
The
Precision Oncology
segment is likely to have gained in Q2 from continued uptake of its trusted Oncotype brand. During the first quarter, the Oncotype DX breast test was utilized to test a record number of patients, providing life-changing information to over 40,000 individuals. Per the company, the Oncotype DX test directs approximately 70% of U.S. patients with HR-positive HER2-negative breast cancer to the most effective treatment based on the risk of recurrence. These trends are likely to have continued in the to-be-reported quarter, further reinforcing the strength of the Oncotype DX test, while boosting the segment’s performance.
Exact Sciences entered a long-term supply agreement with Ultima Genomics, Inc. in Jun 2022. The collaboration will leverage Ultima’s sequencing technology to develop one or more of Exact Sciences’ advanced cancer diagnostic tests. The collaboration is intended to cut the high cost of sequencing to enhance patient access to genomics-based testing and human health. It is anticipated to have had a beneficial impact on the to-be-reported quarter’s performance as well.
The Zacks Consensus Estimate for Precision Oncology revenues is pinned at $149 million, indicating 7.9% growth from the year-ago reported number.
The
COVID Testing
sales are likely to have declined on a year over year basis in the second-quarter, owing to a strong comparison with year-ago period. However, even as the effects of the pandemic fade, COVID-19 continues to be a public health concern. Throughout the to-be-reported quarter, the demand for COVID-19 testing might have continued to be highly volatile.
The Zacks Consensus Estimate for COVID-19 Testing revenues is pinned at $8.16 million, indicating 75.3% decline from the year-ago reported number.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2022 revenues is pegged at $496.75 million, suggesting a rise of 14.24% from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2022 net loss is pinned at $1.07, suggesting a deterioration from the year-ago quarter’s net loss of $1.03.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive
Earnings ESP
has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP:
The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank:
The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alcon Inc.
ALC
has an Earnings ESP of +5.07% and a Zacks Rank of #1. Alcon is expected to release second-quarter 2022 results on Aug 16. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Alcon’s long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.24% compares with the industry’s (8.79%).
Glaukos Corporation
GKOS
currently has an Earnings ESP of +2.27% and a Zacks Rank of #1. Glaukos is scheduled to release second-quarter 2022 results on Aug 3.
GKOS’ 2023 earnings growth rate is estimated at 15.2%.
BrainsWay Ltd.
BWAY
currently has an Earnings ESP of +33.33% and a Zacks Rank of #2. BrainsWay is expected to release second-quarter fiscal 2022 results on Aug 10.
BWAY’s 2023 earnings growth rate is estimated to be 16.7%.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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