Myriad Genes (MYGN) Higher Second Quarter Earnings, Gross Margin Low

Myriad Genetics, Inc. MYGN reported adjusted earnings per share (EPS) of 4 cents in the second quarter of 2022, topping Zacks’ consensus estimate for adjusted earnings per share of 2 cents. However, the measure is down 66.7% from last year’s quarter figure of 12 cents.

Quarterly adjustments exclude some takeovers — amortization of intangible asset expenses and equity compensation, among other things.

The GAAP loss per share was 18 cents, compared to the previous year’s loss of 6 cents.

Revenues

Total revenue decreased 5.3% year over year to $179.3 million in the quarter under review. However, the number exceeded the Zacks consensus estimate by 6.7%.

Excluding stripped business revenue, RBM, Autoimmunity and myPath, second-quarter revenue increased 7% year over year.

Test volumes in the first quarter totaled 260,000, reflecting a 9% year-over-year increase (excluding companies divested). Sequentially, the trading volume increased by 7%.

quarter in detail

Segment-wide Molecular Diagnostic Testing reported total revenue of $179.3 million, up 0.3% year over year.

Within this segment, genetic cancer testing revenue declined 8% year-over-year to $79.4 million. Pharmacogenomics testing revenue was $33.1 million, an increase of 46% year over year.

Countless genetics, company price, compatibility and EPS surprise

Countless genetics, company price, compatibility and EPS surprise

Myriad Genetics, Inc. Price-consensus-surprise-earnings-chart | Myriad Genetics, Inc.

Tumor profiling testing revenue increased 11% year over year to $33.5 million. Revenue for prenatal screening was $33.3 million, up 13%.

margin trends

Gross margin in the quarter under review decreased 238 basis points to 72.3%.

Research and development expenditures increased 4.1% year over year to $20.3 million. Administrative, general and selling expenses declined 5.9% to $127.1 million in the cited quarter.

Adjusted operating loss was $17.8 million compared to adjusted operating loss of $13.3 million in the same quarter last year.

Financial Center

Myriad Genetics exited the second quarter of 2022 in cash and cash equivalents of $105.2 million compared to $165.2 million at the end of the first quarter of 2022. However, the company had no debt on its balance sheet at the end of the second quarter of 2022. 2022

Cumulative net cash used in operating activities at the end of the second quarter of 2022 was $96.8 million compared to last year’s cumulative net cash from operating activities of $67.4 million.

guidance

The company has updated its guidance for 2022.

For 2022, the company reaffirmed revenue forecasts in the $670-700 million range. Zachs’ consensus estimate for himself is $685.3 million.

Adjusted EPS is now expected to be in the range of a 10 cent loss to breakeven (previous guidance was in the 0-20 cent range). The Zachs consensus estimate for the scale is pegged at 11 cents.

our point of view

Myriad Genetics exited the second quarter of 2022 with better-than-expected results. Strong performance across the women’s health business bodes well for the company. The improvement in pharmacogenomics, tumor characterization, and sales of prenatal tests is impressive. In the mental health space, the company reported strong volumes for the GeneSight Psychotropic Test, instilling optimism. Gross margin expansion also looks encouraging. The company’s strategic partnerships with Intermountain Precision Genomics and Epic Systems Corporation in the reported quarter are additional gains.

However, the annual decline in revenue is worrying. The company incurred an operating loss in the quarter under review. The cut-off adjusted EPS forecast for 2022 also raises concerns.

Zacks order and key selection

Myriad Genetics currently holds the Zacks Rank No. 3 (Hold).

Some of the best-rated stocks in the broader medical field that have reported quarterly results are: Quest Diagnostics Incorporated dgx, Molina Healthcare, Inc. Ministry of Health and Merck & Company. MRK.

Quest Diagnostics, Zacks Rank #2 (buy), announced a $2.36 earnings per share adjustment for the second quarter of 2022, which beat Zacks consensus estimate by 9.8%. Revenue of $2.45 billion beat the consensus mark by 7.5%. you can see The full list of Zacks #1 stocks (strong buy) today is here.

Quest Diagnostics has a profit of 7.0%, compared to 3.2% in the industry. DGX earnings beat estimates in three of the subsequent four quarters and lost the same in one, averaging 12.1%.

Molina Healthcare, which has a Zacks rating of 2, reported adjusted earnings per share for the second quarter of 2022 of $4.55, which beat the Zacks consensus estimate by 4.8%. Revenues of $8.1 billion beat the consensus mark by 6.2%.

Molina Healthcare has an estimated long-term growth rate of 16.4%. Health Department earnings beat estimates in the subsequent four quarters by an average of 3.2%.

Merck reported adjusted earnings for the second quarter of 2022 of $1.87 per share, topping Zacks Consensus’ estimate of $1.67. Revenues of $14.6 billion beat Zacks Consensus’ estimate by 5.4%. It currently has a Zacks #2 rating.

Merck has an estimated long-term growth rate of 10.1%. MRK’s earnings beat estimates in the subsequent four quarters, and the average surprise was 16.8%.

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