Latest news with #ExactSciencesCorporation
Yahoo
3 days ago
- Business
- Yahoo
Should You Continue to Hold EXAS Sciences Stock in Your Portfolio?
Exact Sciences Corporation's EXAS efforts to further promote its flagship Cologuard as the standard of care are encouraging. The company plans to transform cancer care by providing patients with valuable insights at every step of their diagnosis and treatment. Additionally, it continues to invest in a pipeline of innovative solutions for every stage of cancer diagnosis. However, unfavorable solvency and mounting costs from macroeconomic pressures raise concerns for EXAS' operations. In the past year, this Zacks Rank #3 (Hold) stock has rallied 23.5% against the 17.1% fall of the industry and the S&P 500 Composite's gain of 11.3%. The globally renowned medical device company boasts a market capitalization of $10.34 billion. It has a long-term earnings growth rate of 29.3% compared with the industry's 21.4%. Additionally, the company's earnings surpassed estimates in three of the trailing four quarters and fell short in another, delivering an average surprise of 48.8%. Strategic Priority Bodes Well: Exact Sciences is pushing Cologuard as the CRC screening benchmark, backed by 16 million test uses over the past decade. In the first quarter of 2025, screening revenues increased 14%, led by broad-based Cologuard growth. Continued success in rescreens, care gap programs and growth in new ordering providers fuels this momentum. Exact Sciences is investing in the leadership team, training and sales force efficiency, as well as simplifying the electronic ordering process to further drive growth. Rescreening patients every three years from age 45 is also expected to contribute. Image Source: Zacks Investment Research Meanwhile, the robust international adoption of Oncotype DX led to 4% year-over-year growth in Precision Oncology revenues. The test, included in all major breast cancer treatment guidelines, helps early-stage breast cancer patients by evaluating the need for chemotherapy and recurrence risk. With about 70% of the eligible patients outside the United States not currently being tested, there still remains a substantial opportunity to grow. Enhancing Customer Experience: The company is currently working to build the best digital infrastructure and diagnostics. This vision has two main elements: first, enabling patients to take a more proactive role in their care. Second, it makes it easy for physicians to order tests, interpret results and personalize medicine by applying real-world evidence and guideline recommendations. The combined strength of Exact Nexus, the company's proprietary technology platform, and EXAS' commercial capabilities is leading to more patients completing Cologuard every three years, supporting the company's goal of making screening a routine practice and also closing the screening gap. The company has identified more than 100 opportunities with payers and health systems to address the care gaps with Cologuard through large, organized screening programs. Advancing New Solutions: In late March 2025, the company launched Cologuard Plus, the most accurate non-invasive CRC screening test reported in studies so far. The test rapidly secured Medicare coverage, pricing and quality measure guideline inclusion. With its enhanced specificity, Cologuard Plus is expected to reduce unnecessary follow-up colonoscopies by up to 40% compared to the original Cologuard test. Subsequent to the quarter's end, Exact Sciences marked another highly anticipated launch with its Oncodetect MRD test. Introduced as a laboratory-developed test (LDT), the company expects to obtain Medicare reimbursement through the Molecular Diagnostic Services Program in the second quarter of 2025. Furthermore, the Cancerguard MCED test is on track to be launched as an LDT later this year. The company is also making headway with its blood-based colon cancer screening test, with top-line results from the pivotal BLUE-C study expected by mid-2025. Strong Solvency but Highly Leveraged: Exact Sciences exited the first quarter of 2025 with cash and cash equivalents and marketable securities of $786 million and zero current debt. However, the company's significant indebtedness is a concern. Long-term debt of $2.32 billion was almost consistent with the fourth-quarter levels. Escalating Costs: Exact Sciences' business has been affected by global macroeconomic conditions. Disruptions in the United States, Europe or other economies, whether from geopolitical tensions or changing international trade policies, could disrupt global markets, interrupt global supply chains and lead to inflationary or recessionary effects on the worldwide economy. In addition, the high-interest rate environment and limited access to capital markets could strain the company's suppliers, distributors and key business partners, making it difficult for them to remain in business. All these are creating significant pressure on its profitability as well. In the past 30 days, the Zacks Consensus Estimate for Exact Sciences' loss for 2025 went from 61 cents to 14 cents in the past 60 days. The Zacks Consensus Estimate for the company's 2025 revenues suggests a 12.4% year-over-year improvement to $3.10 billion. Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Hims & Hers Health HIMS and Cencora COR. Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry's 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 37.7% compared with the industry's 10.7% growth in the past year. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Hims & Hers Health, currently carrying a Zacks Rank #2, has an earnings yield of 1.3% against the industry's 11.9% yield. Shares of the company have surged 151.7% compared with the industry's 32.5% gain. HIMS' earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%. Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry's 4.1%. Shares of the company have rallied 25.8% against the industry's 22.4% fall. COR's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cencora, Inc. (COR) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Exact Sciences Corporation (EXAS) Slid on Fear of Competition
Baron Funds, an investment management company, released its 'Baron Discovery Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund was down 6.17% (Institutional Shares), outperforming the -11.12% return for the Russell 2000 Growth Index. The market began strong in February but faded due to Trump's serious tariff enactment, which the market perceives as inflationary and slowing economic growth. The decline accelerated after April 2nd, causing fears of a trade war and global recession. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Discovery Fund highlighted stocks such as Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. The one-month return of Exact Sciences Corporation (NASDAQ:EXAS) was 28.97%, and its shares gained 6.39% of their value over the last 52 weeks. On May 19, 2025, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $56.94 per share with a market capitalization of $10.741 billion. Baron Discovery Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q1 2025 investor letter: "Exact Sciences Corporation (NASDAQ:EXAS) is a cancer diagnostics company. Its flagship product is Cologuard, a stool-based screening test for colorectal cancer (CRC). Shares detracted from performance in the quarter due to fears of competitive blood-based CRC tests which may launch in 2025. While these tests cost more than Cologuard, they are somewhat more convenient for patients. However, blood-based tests do not have the same level of pre-cancer sensitivity as Cologuard, and Cologuard is significantly better at detecting pre-cancerous growths called Advanced Adenoma. Moreover, Exact Sciences is developing its own blood-based tests that we anticipate will be as accurate as competitor tests but will cost significantly less than those tests as it uses a different type of analytics to get its results. So, either way, we believe Exact Sciences will win. It also has a huge channel presence in CRC which will enable it to be successful in both fecal and blood-based CRC testing. In addition, with 60 million Americans not receiving any CRC screening at all, there is ample opportunity for multiple players to win." A research team in a laboratory discussing the results of a lab screening test for biomarkers. Exact Sciences Corporation (NASDAQ:EXAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Exact Sciences Corporation (NASDAQ:EXAS) at the end of the fourth quarter compared to 41 in the third quarter. Exact Sciences Corporation's (NASDAQ:EXAS) first quarter revenue experienced 11% rise on reported and core basis exceeding the mid pint of guidance over $19 million. While we acknowledge the potential of Exact Sciences Corporation (NASDAQ:EXAS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Exact Sciences Corporation (NASDAQ:EXAS) and shared the list of high P/E stocks that Insiders are buying. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
EXAS Q1 Earnings Call: Outperformance Driven by Commercial Execution, New Products, and Margin Expansion
Diagnostic company Exact Sciences Corporation (NASDAQ:EXAS) announced better-than-expected revenue in Q1 CY2025, with sales up 10.9% year on year to $706.8 million. The company's full-year revenue guidance of $3.1 billion at the midpoint came in 1.3% above analysts' estimates. Its non-GAAP loss of $0.21 per share was significantly below analysts' consensus estimates. Is now the time to buy EXAS? Find out in our full research report (it's free). Revenue: $706.8 million vs analyst estimates of $688.5 million (10.9% year-on-year growth, 2.7% beat) Adjusted EPS: -$0.21 vs analyst estimates of -$0.10 (significant miss) Adjusted EBITDA: $63.26 million vs analyst estimates of $59.87 million (8.9% margin, 5.7% beat) The company lifted its revenue guidance for the full year to $3.1 billion at the midpoint from $3.06 billion, a 1.3% increase EBITDA guidance for the full year is $440 million at the midpoint, above analyst estimates of $422.9 million Operating Margin: -13.6%, up from -16.7% in the same quarter last year Free Cash Flow was -$365,000 compared to -$120 million in the same quarter last year Constant Currency Revenue rose 11% year on year (5.8% in the same quarter last year) Market Capitalization: $10.6 billion Exact Sciences began 2025 with notable momentum, attributing Q1 results to improved commercial execution and the launch of new products. Management emphasized that changes made to the sales organization, including territory realignment and expanded field engagement, led to a 30% increase in customer interactions. CEO Kevin Conroy cited early success with the launch of Cologuard Plus and continued growth in the company's rescreen and care gap programs as key drivers of revenue for the quarter. Looking ahead, management lifted full-year revenue guidance and highlighted the expected impact of new products and operational efficiency initiatives. CFO Aaron Bloomer said the company expects 'continued leverage across the P&L,' with gross margin improvements and cost optimization actions underway. Management believes the recent launches and increased provider engagement will support both top-line growth and improving profitability throughout the year. Management identified several drivers of Q1 performance, including new product launches, enhanced commercial strategy, and operational improvements. Early signs of adoption for Cologuard Plus and increased engagement with healthcare providers contributed meaningfully to results. Commercial execution enhancements: The expansion and realignment of the sales force, along with targeted provider outreach, led to a 30% increase in provider engagement and higher sales productivity. Management stated that rep productivity was up about 10% and that three out of four new ordering providers were engaged within two weeks. Cologuard Plus launch: The company launched Cologuard Plus, its next-generation colorectal cancer screening test, which achieved early Medicare coverage and quality measure inclusion. Over 30,000 tests have already been completed, with ongoing discussions to secure broader payer coverage. Management emphasized the improved accuracy and lower false positive rate compared to the original Cologuard. Growth in recurring revenue streams: The rescreen program now accounts for more than 25% of total revenue, providing a stable and growing source of recurring income. Management noted increasing adherence rates and a growing eligible patient pool. Operational efficiency gains: Cost optimization and productivity initiatives reduced general and administrative expenses as a percentage of revenue by more than 520 basis points. The company also achieved break-even free cash flow, a $120 million year-over-year improvement. Pipeline and product development progress: Beyond Cologuard Plus, the company launched Oncodetect (a molecular residual disease test), continued work on a blood-based colon cancer screening test (with results expected mid-year), and prepared for the late-2025 launch of Cancerguard for multi-cancer screening. Management's outlook for the remainder of 2025 centers on sustained commercial momentum, expanded adoption of new products, and further cost discipline. The company expects these factors to drive high-single-digit to low-double-digit revenue growth and continued margin improvement. Broader adoption of Cologuard Plus: Management anticipates that securing coverage from additional payers and increasing provider awareness will lead to higher test volumes and improved gross margins due to better pricing and lower test costs. Expansion of recurring programs: Growth in the rescreen and care gap programs is expected to provide predictable revenue and higher customer retention, supporting stability even as new products scale. Operational efficiency initiatives: Further cost optimization, particularly in G&A and manufacturing, is expected to enhance profitability. Management also highlighted the risk of near-term cash flow fluctuations as accounts receivable build with new product launches, but expects collection to normalize by year-end. Tycho Peterson (Jefferies): Asked for details on commercial changes driving new customer growth. Management explained that doctor engagement and rep productivity increased, with new providers being contacted within two weeks of first orders. Catherine Schulte (Baird): Inquired about the breakdown of revenue guidance upgrades. CFO Aaron Bloomer attributed improvements to commercial execution, particularly in rescreens and care gap programs, and increased provider engagement. Brandon Couillard (Wells Fargo): Sought clarity on increased sales and marketing spend. Management responded that investments supported new product launches and were leveraged by strong revenue growth, with a goal of maintaining consistent pacing throughout the year. Patrick Donnelly (Citi): Requested updates on the pipeline and timing for the blood-based colon cancer screening test. CEO Kevin Conroy confirmed the company remains on track for a mid-summer top-line data readout. Luke Sergott (Barclays): Asked about gross margin trends with new product launches. Management stated that Cologuard Plus should be accretive to gross margin, as lower test costs and improved pricing offset potential headwinds from simultaneous product lines. In the coming quarters, the StockStory team will be monitoring (1) the pace of payer adoption and provider uptake for Cologuard Plus, (2) the volume growth and adherence rates in recurring rescreen and care gap programs, and (3) the upcoming mid-year release of top-line data from the company's blood-based colon cancer screening trial. Progress in operational efficiency and continued improvement in free cash flow generation will also be important signposts for tracking execution. Exact Sciences currently trades at a forward P/E ratio of 85.4×. Should you load up, cash out, or stay put? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Exact Sciences (EXAS) Stock Trades Up, Here Is Why
Shares of diagnostic company Exact Sciences Corporation (NASDAQ:EXAS) jumped 15.2% in the morning session after the company reported strong first quarter 2025 results which beat analysts' revenue and EBITDA expectations and included full-year revenue guidance that slightly exceeded Wall Street's estimates. Sales grew 11% from the previous year, driven by a 14% rise in screening revenue, while precision oncology grew more modestly at 4% on a core basis. The sales bump largely came from the expansion of the company's test menu and stronger execution in its commercial teams. Overall, this print had some key positives. Is now the time to buy Exact Sciences? Access our full analysis report here, it's free. Exact Sciences's shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Exact Sciences and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 5.9% on the news that the company reported underwhelming fourth-quarter results as profit margins worsened significantly while revenue trudged along. While EXAS deserves some credit for the modest top-line beat, the company remained unprofitable on a GAAP basis, and this also wiped out its cash flow headroom, as free cash flow margin also fell significantly during the quarter. On the other hand, Exact Sciences blew past analysts' constant currency revenue expectations this quarter, and its adjusted EPS and EBITDA outperformed. Still, we think this was still a mixed yet challenging quarter. Exact Sciences is down 7.8% since the beginning of the year, and at $52.52 per share, it is trading 27% below its 52-week high of $71.93 from October 2024. Investors who bought $1,000 worth of Exact Sciences's shares 5 years ago would now be looking at an investment worth $677.91. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Exact Sciences (NASDAQ:EXAS) Posts Better-Than-Expected Sales In Q1, Stock Soars
Diagnostic company Exact Sciences Corporation (NASDAQ:EXAS) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 10.9% year on year to $706.8 million. The company's full-year revenue guidance of $3.10 billion at the midpoint came in 1.3% above analysts' estimates. Its non-GAAP loss of $0.21 per share was significantly below analysts' consensus estimates. Is now the time to buy Exact Sciences? Find out in our full research report. Revenue: $706.8 million vs analyst estimates of $688.5 million (10.9% year-on-year growth, 2.7% beat) Adjusted EPS: -$0.21 vs analyst estimates of -$0.10 (significant miss) Adjusted EBITDA: $63.26 million vs analyst estimates of $59.87 million (8.9% margin, 5.7% beat) The company lifted its revenue guidance for the full year to $3.10 billion at the midpoint from $3.06 billion, a 1.3% increase EBITDA guidance for the full year is $440 million at the midpoint, above analyst estimates of $422.9 million Operating Margin: -13.6%, up from -16.7% in the same quarter last year Free Cash Flow was -$365,000 compared to -$120 million in the same quarter last year Constant Currency Revenue rose 11% year on year (5.8% in the same quarter last year) Market Capitalization: $8.48 billion With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Exact Sciences's sales grew at an excellent 21.6% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Exact Sciences's annualized revenue growth of 13.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Exact Sciences also reports sales performance excluding currency movements, which are outside the company's control and not indicative of demand. Over the last two years, its constant currency sales averaged 13.7% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Exact Sciences has properly hedged its foreign currency exposure. This quarter, Exact Sciences reported year-on-year revenue growth of 10.9%, and its $706.8 million of revenue exceeded Wall Street's estimates by 2.7%. Looking ahead, sell-side analysts expect revenue to grow 11.6% over the next 12 months, a slight deceleration versus the last two years. Still, this projection is commendable and indicates the market is baking in success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Exact Sciences's high expenses have contributed to an average operating margin of negative 31.9% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, Exact Sciences's operating margin rose by 27.1 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming into its more recent performance, however, we can see the company's margin has decreased by 14.3 percentage points on a two-year basis. If Exact Sciences wants to pass our bar, it must prove it can expand its profitability consistently. This quarter, Exact Sciences generated a negative 13.6% operating margin. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Although Exact Sciences's full-year earnings are still negative, it reduced its losses and improved its EPS by 29.3% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q1, Exact Sciences reported EPS at negative $0.21, up from negative $0.40 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Exact Sciences's full-year EPS of negative $0.07 will flip to positive $0.66. We enjoyed seeing Exact Sciences beat analysts' revenue and EBITDA expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street's estimates. Overall, this print had some key positives. The stock traded up 8.6% to $51.20 immediately following the results. Is Exact Sciences an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
