Exact Sciences Corporation
EXAS
reported first-quarter 2022 net loss of $1.04, much wider than the net loss of 18 cents in the year-ago period. However, the metric was narrower than the Zacks Consensus Estimate of a loss of $1.12.
Revenues in Detail
First-quarter consolidated revenues were $486.6 million, up 21% year over year. The metric exceeded the Zacks Consensus Estimate by 5.3%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics, and immaterial revenues from Biomatrica products, were $306.5 million, reflecting a year-over-year increase of 27.5% driven by Cologuard volumes. In the quarter, 9,000 new healthcare providers ordered Cologuard.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products, were $152.6 million, up 17.9% year over year.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation price-consensus-eps-surprise-chart
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Exact Sciences Corporation Quote
Revenues from COVID-19 testing totaled $27.4 million, down 15.2% year over year.
Margin
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 20.5% to $351.9 million. Gross margin contracted 33 basis points (bps) to 72.3%.
Research and development expenses contracted 11.5% year over year to $102.2 million. Sales and marketing expenses increased 24.7% to $232.2 million. General and administrative expenses contracted 36.6% year over year to $169.8 million.
Adjusted operating expenses were $504.2 million in the first quarter, down 11.5% year over year. Adjusted operating loss totaled $152.3 million, narrower than the year-ago operating loss of $277.4 million.
Financial Update
Exact Sciences exited first-quarter 2022 with cash and cash equivalents, and marketable securities of $816.9 million compared with $1.03 billion at the end of 2021.
The company reported no long-term debt on its balance sheet at the end of first-quarter 2022.
2022 Outlook
The company now expects revenues in the range of $1,985-$2,032 million (an improvement from the earlier projected range of $1,975-$2,027 million) for 2022. The Zacks Consensus Estimate for the same is pegged at $2.01 billion.
For 2022, the company now expects Screening revenues in the range of $1,350-$1,372 million (earlier projection $1,340-$1,367 million). The company has reaffirmed its guidance for Precision Oncology revenues at the band of $595-$610 million. The company has also maintained its outlook for COVID-19 testing revenues at the band of $40-$50 million.
Our Take
Exact Sciences exited the first quarter of 2022 with better-than-expected results. Robust revenues from the Screening and Precision Oncology segments contributed to the first-quarter top line. The company’s legacy Screening business was driven by impressive Cologuard volume growth. Meanwhile, revenue contributions from the PreventionGenetics acquisition buoy optimism. The Precision Oncology business saw an improvement in revenues due to significant Oncotype DX breast volume growth. A decline in adjusted operating expenses during the quarter appears promising.
On the flip side, the increase in quarterly loss compared to the year-ago period is discouraging. Contraction in gross margin does not bode well. The company incurred an operating loss in the quarter under review. A decline in short-term cash level is worrisome as well.
Zacks Rank and Other Key Picks
Exact Sciences currently carries a Zacks Rank #3 (Hold).
Here are some medical stocks with the right combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to post an earnings beat this quarter.
Computer Programs and Systems
CPSI
has an Earnings ESP of +1.52% and a Zacks Rank of #1. Computer Programs and Systems will release first-quarter 2022 results on May 3. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Computer Programs and Systems’ long-term earnings growth rate is estimated at 14%. CPSI’s earnings yield of 8.52% compares favorably with the industry’s (7.58%).
Alcon Inc.
ALC
has an Earnings ESP of +10.04% and a Zacks Rank of #2. Alcon is expected to release first-quarter 2022 results on May 3.
Alcon’s long-term earnings growth rate is estimated at 14.7%. ALC’s earnings yield of 3.22% compares with the industry’s (6.88%).
Meridian Bioscience, Inc.
VIVO
has an Earnings ESP of +26.32% and a Zacks Rank of #2. Meridian Bioscience is scheduled to release second-quarter fiscal 2022 results on May 6.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s earnings yield of 5.52% compares favorably with the industry’s 0.92%.
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