Yahoo Finance Myriad Genetics (MYGN) Q4 Earnings Top, Gross Margin Falls
Myriad Genetics, Inc. MYGN reported an adjusted loss per share of 12 cents in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 27 cents. However, the figure was wider than the year-ago quarter’s loss of 2 cents per share.
The quarter’s adjustments exclude certain acquisition-amortization of intangible asset expenses and equity compensation, among others.
GAAP loss per share was 52 cents against the prior-year quarter’s loss of 10 cents.
For the full year, the adjusted loss per share was 30 cents against the year-ago period’s earnings per share of 2 cents. The figure lagged the Zacks Consensus Estimate of a loss of 34 cents.
Revenues
Total revenues rose 10.6% year over year to $177.8 million in the quarter under review. The figure, however, surpassed the Zacks Consensus Estimate by 5.1%.
Testing volumes grew 26% year over year and 11% year-over-year, excluding the contribution from the recent acquisition of Gateway Genomics and its Early Gender DNA Test.
Total revenues for 2022 were $678.4 million, down 1.8% from the year-ago period’s levels. The figure beat the Zacks Consensus Estimate by 1.3%.
Quarter in Detail
Hereditary Cancer testing revenues rose 14% year over year to $84.9 million. Pharmacogenomics testing revenues were $32.1 million, up 9% year over year.
Tumor Profiling testing revenues were up 20% year over year to $31.7 million. Prenatal testing revenues came in at $29.1 million, down 3%.
Margin Trends
The gross margin in the quarter under review contracted 183 basis points (bps) to 69.7%.
Research and development expenses rose 40.9% year over year to $23.4 million. Selling, general and administrative expenses rose 14.9% to $146.5 million in the reported quarter.
Myriad Genetics, Inc. Price, Consensus and EPS Surprise
Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote
The adjusted operating loss was $46 million compared with an adjusted operating loss of $29.1 million in the year-ago quarter.
Financial Position
Myriad Genetics exited 2022 with cash and cash equivalents of $56.9 million compared with $257.4 million at the end of 2021. However, the company had no debt on its balance sheet at the end of 2022.
The cumulative net cash used in operating activities at the end of 2022 was $106.3 million compared with the year-ago cumulative net cash provided by operating activities of $18.6 million.
Guidance
The company provided its first quarter and full year 2023 guidance.
For 2023, the company expects revenues in the range of 720-$750 million. The Zacks Consensus Estimate for the same is pegged at $724.2 million.
The bottom line, on an adjusted basis, is expected to be in the range of a loss of 40 cents to a loss of 20 cents. The Zacks Consensus Estimate for the metric is pegged at a loss of 24 cents per share.
For the first quarter of 2023, the company expects revenues in the range of 170-$172 million. The Zacks Consensus Estimate for the same is pegged at $175.8 million.
For the first quarter, the adjusted loss is expected between a loss of 20 cents to a loss of 18 cents. The Zacks Consensus Estimate for the metric is pegged at a loss of 9 cents per share.
Our Take
Myriad Genetics exited fourth-quarter 2022 with better-than-expected earnings and revenues. Hereditary Cancer testing volume registered strong growth in the fourth quarter. GeneSight, within Hereditary Cancer testing, had yet another strong performance with volume improvement. The company ended the reported quarter with no outstanding debt, which is encouraging.
On the flip side, significant gross margin contraction and operating loss as a result of mounting cost pressure are concerning. Moreover, the company ended 2022 with lower cash and cash equivalents primarily due to the acquisition of Gateway Genomics (closed November 1) and ongoing capital expenditures and investments in the company's laboratories of the future strategy.
Zacks Rank and Key Picks
Myriad Genetics currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Becton, Dickinson and Company BDX, popularly known as BD, McKesson Corporation MCK and Hologic, Inc. HOLX.
BD, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2023 adjusted EPS of $2.98, beating the Zacks Consensus Estimate by 11.6%. Revenues of $4.59 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BD has a long-term estimated growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average being 6.5%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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