EXACT Sciences is set to announce its Q3 earnings on November 1st, after market close. The firm specializes in various sectors, including Screening, Precision Oncology, and previously, COVID-19 testing.
Financial Metrics
Revenue: FactSet estimates place revenue at $616.8 million, with Screening contributing $462.3 million and Precision Oncology making up $154.3 million. COVID-19 testing shows no contribution, indicating a pivot or discontinuation in this area.
Expenses and Margins: The company is expected to spend $104.5 million on R&D and $191.3 million on Sales and Marketing. General and Administrative expenses stand at $215.8 million. The Non-GAAP gross margin is strong at 74.0%, but the GAAP Operating margin is in the negative at -13.7%.
Earnings Per Share (EPS): The EPS is expected to be negative at $0.47.
ESG Metrics
EXACT Sciences ranks as a Leader in ESG metrics with a Truvalue Labs adjusted insight score of 73, up 5 points quarter-over-quarter. Its MSCI score remains constant at 'A'.
Guidance for Fiscal Year
The company expects annual revenue to be between $2.44 billion and $2.47 billion. EBITDA is forecasted to be between $170.0 million and $180.0 million, with a margin of 7.0% to 7.3%.
Stock Performance and Volatility
EXACT Sciences' stock outperformed the S&P 500 and the Health Care sector (XLV), gaining 36.3% in Q3. Options trading suggests that investors expect about a 12.2% price move in the near term.
Past Performance
Revenue has surpassed consensus estimates in 18 of the past 20 quarters, while EPS has beaten estimates in 13 of the past 20 quarters.
Key Takeaways
1. Revenue Streams: EXACT Sciences generates significant revenue from Screening and Precision Oncology.
2. Operational Costs: High expenses, especially in G&A, are a concern and may be affecting the negative operating margin.
3. ESG Leadership: The company is making strides in environmental, social, and governance aspects, which could be a long-term asset.
4. Market Expectation: The market has high expectations for the stock, as evidenced by its Q3 performance and options activity.
5. Consistent Performance: The history of frequently beating revenue and sometimes EPS estimates bodes well for the company.
EXACT Sciences shows promise in its revenue streams and ESG metrics but needs to manage its operational costs better to improve profitability.
Investors and market participants will be keenly watching the upcoming earnings report for these insights.
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BLUE-C Trial Sets New Standard in Colorectal Cancer Detection
The next-generation Cologuard test from Exact Sciences Corp. sets a new standard for non-invasive colorectal cancer screening.
Here are the key takeaways from its pivotal BLUE-C trial:
Superior Performance
The test achieved 94% sensitivity and 91% specificity for detecting colorectal cancer, significantly outperforming the Fecal Immunochemical Testing (FIT) on both fronts.
High Specificity
With its high specificity rate, the test aims to reduce unnecessary follow-up colonoscopies, enhancing patient experience.
Robust Trial Data
The BLUE-C trial included over 20,000 subjects, making it one of the largest and most comprehensive colorectal cancer screening trials to date.
Advanced Detection
The test also showed higher sensitivity in detecting advanced precancerous lesions and high-grade dysplasia compared to FIT.
Additional Support
Further analysis confirmed that the next-generation Cologuard's performance metrics were equivalent to or better than the first-generation Cologuard test.
Upcoming Developments
Exact Sciences plans to submit the next-generation Cologuard for FDA approval and will release more data in the coming months.
Overall, the next-generation Cologuard test promises to be a game-changer in the early detection of colorectal cancer, offering higher accuracy and fewer false positives.