Latest news with #MYGN
Yahoo
05-08-2025
- Business
- Yahoo
Myriad Genetics (NASDAQ:MYGN) Reports Strong Q2, Stock Jumps 30.6%
Genetic testing company Myriad Genetics (NASDAQ:MYGN) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales were flat year on year at $213.1 million. The company's full-year revenue guidance of $823 million at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts' consensus estimates. Is now the time to buy Myriad Genetics? Find out in our full research report. Myriad Genetics (MYGN) Q2 CY2025 Highlights: Revenue: $213.1 million vs analyst estimates of $202 million (flat year on year, 5.5% beat) Adjusted EPS: $0.05 vs analyst estimates of -$0.01 (significant beat) Adjusted EBITDA: $14.5 million vs analyst estimates of $4.75 million (6.8% margin, significant beat) The company slightly lifted its revenue guidance for the full year to $823 million at the midpoint from $815 million EBITDA guidance for the full year is $30 million at the midpoint, above analyst estimates of $20.53 million Operating Margin: -154%, down from -17.3% in the same quarter last year Free Cash Flow was -$20.5 million compared to -$2.6 million in the same quarter last year Market Capitalization: $366.9 million "We delivered solid second-quarter results, driven by continued strength in hereditary cancer testing in oncology, improving momentum in hereditary cancer testing for unaffected individuals, and favorable pricing trends supported by mix and our ongoing efforts to expand payer coverage. Our disciplined approach to expense management contributed to our improved profitability while we continued to invest in strategic drivers to enable long-term growth," said Sam Raha, President and CEO, of Myriad Genetics. Company Overview Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Myriad Genetics grew its sales at a mediocre 5.5% compounded annual growth rate. This was below our standard for the healthcare sector and is a poor baseline 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. Myriad Genetics's annualized revenue growth of 9.2% over the last two years is above its five-year trend, suggesting some bright spots. This quarter, Myriad Genetics's $213.1 million of revenue was flat year on year but beat Wall Street's estimates by 5.5%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Adjusted Operating Margin Although Myriad Genetics was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 1.3% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, Myriad Genetics's adjusted operating margin rose by 4.2 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company's margin has increased by 11.2 percentage points on a two-year basis. In Q2, Myriad Genetics generated an adjusted operating margin profit margin of 4%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share 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. Myriad Genetics's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q2, Myriad Genetics reported adjusted EPS at $0.05, in line with the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Myriad Genetics to perform poorly. Analysts forecast its full-year EPS of $0.11 will hit $0.09. Key Takeaways from Myriad Genetics's Q2 Results This was a beat and raise quarter. We were impressed by how significantly Myriad Genetics blew past analysts' revenue, EBITDA, and EPS expectations this quarter. We were also excited its full-year revenue guidance was raised and full-year adjusted EBITDA guidance was ahead of expectations. Zooming out, we think this quarter featured some very important positives. The stock traded up 30.6% to $5.04 immediately after reporting. Myriad Genetics put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. 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.
Yahoo
27-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Myriad Genetics's Q1 Earnings Call
Myriad Genetics' first quarter results were met with a significant negative market reaction, reflecting investor concerns over a combination of volume softness in key product lines and a reset in full-year expectations. Management attributed the revenue decline primarily to underperformance in its GeneSight pharmacogenomic test, which was affected by UnitedHealthcare's policy change, as well as slower-than-anticipated growth in hereditary cancer screening among unaffected individuals. CEO Sam Raha described the quarter as 'challenging,' highlighting both external payer headwinds and internal operational hurdles, such as workflow disruptions related to electronic medical record (EMR) integrations. The company's leadership openly acknowledged the complexity and execution challenges facing the business. Is now the time to buy MYGN? Find out in our full research report (it's free). Revenue: $195.9 million vs analyst estimates of $200.4 million (3.1% year-on-year decline, 2.3% miss) Adjusted EPS: -$0.03 vs analyst estimates of -$0.05 ($0.02 beat) Adjusted EBITDA: -$100,000 vs analyst estimates of -$1.92 million (-0.1% margin, 94.8% beat) The company dropped its revenue guidance for the full year to $815 million at the midpoint from $850 million, a 4.1% decrease Adjusted EPS guidance for Q2 CY2025 is $0 at the midpoint, below analyst estimates of $0.02 EBITDA guidance for the full year is $23 million at the midpoint, below analyst estimates of $29.85 million Operating Margin: -14.8%, down from -13.8% in the same quarter last year Market Capitalization: $491.3 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Doug Schenkel (Wolfe Research) pressed CEO Sam Raha on how long it would take to simplify Myriad's business and clarify key performance metrics. Raha estimated several months for a thorough strategic review and emphasized oncology as the cornerstone of future growth. Puneet Souda (Leerink Partners) questioned whether other payers might follow UnitedHealthcare in dropping coverage for GeneSight. CFO Scott Leffler responded that no similar moves have occurred among other payers and that some incremental coverage wins were achieved. David Westenberg (Piper Sandler) asked for more detail on why EMR integration issues are taking multiple quarters to resolve in hereditary cancer screening. COO Mark Verratti explained that workflow disruptions, account-by-account customization, and patient education requirements are slowing adoption, but efforts are underway to resolve these bottlenecks. Tejas Sawant (Morgan Stanley) sought clarity on the sensitivity requirements for the MRD (minimal residual disease) assay and the broader impact of new oncology product launches. CEO Raha described ongoing clinical studies targeting low-shedding cancers and reaffirmed timelines for product rollouts and evidence generation. Tycho Peterson (Jefferies) inquired about Myriad's liquidity position and the underlying assumptions in the updated guidance. Leffler confirmed that available cash and credit lines are sufficient for 2025, with no material deterioration in reimbursement rates expected. In upcoming quarters, the StockStory team will be watching (1) the pace at which EMR workflow solutions drive volume recovery in hereditary cancer testing, (2) the commercial rollout and adoption of new pipeline products, such as the combined carrier screening and AI-enabled oncology assays, and (3) the effectiveness of cost-control initiatives in supporting margin improvement and liquidity. Progress on payer coverage and revenue cycle management will also be important for tracking Myriad's return to sustainable growth. Myriad Genetics currently trades at $5.09, down from $7.25 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 183% over the last five years (as of March 31st 2025). 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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
30-05-2025
- Business
- Yahoo
3 Cash-Burning Stocks Facing Headwinds
Rapid spending isn't always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable. Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here are three cash-burning companies to avoid and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: -2.1% Cooling America's first indoor ice rink in the 19th century, Enviri (NYSE:NVRI) offers steel and waste handling services. Why Should You Sell NVRI? Sales trends were unexciting over the last two years as its 7.1% annual growth was below the typical industrials company Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Enviri's stock price of $8.15 implies a valuation ratio of 2.6x forward EV-to-EBITDA. If you're considering NVRI for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: -2.9% Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health. Why Do We Think MYGN Will Underperform? Annual revenue growth of 1.8% over the last five years was below our standards for the healthcare sector Earnings per share fell by 29.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam Myriad Genetics is trading at $4.09 per share, or 32.5x forward P/E. To fully understand why you should be careful with MYGN, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: -1.8% Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ:SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets. Why Are We Cautious About SATS? Incremental sales over the last five years were much less profitable as its earnings per share fell by 11.5% annually while its revenue grew 6.8 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders At $20.50 per share, EchoStar trades at 3.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SATS in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
28-05-2025
- Health
- Yahoo
Myriad Genetics, Inc. (MYGN) Showcases Breakthrough MRD Data and AI-Driven Cancer Tools at ASCO 2025
Myriad Genetics, Inc. (NASDAQ:MYGN) is making waves at the 2025 ASCO Annual Meeting, presenting seven new research studies that underscore major advances in molecular diagnostics and precision oncology. Among the highlights is the MONSTAR-SCREEN-3 study, which demonstrates the power of Myriad Genetics, Inc. (NASDAQ:MYGN)'s whole-genome sequencing-based Precise MRD test to detect circulating tumor DNA (ctDNA) with unprecedented sensitivity across multiple cancer types, achieving 100% baseline detection and identifying tumor fractions as low as 0.0001%. This technology also flags cancer recurrence earlier than traditional imaging. A biotechnologist in a laboratory testing an Immuno-oncology treatment. Other studies include ultrasensitive ctDNA monitoring in metastatic breast cancer, ancestry-specific cancer risk variants, and expanded genetic testing for hereditary cancers. Myriad Genetics, Inc. (NASDAQ:MYGN) also announced upcoming launches: a commercial Precise MRD test in 2026, an AI-powered Prolaris prostate cancer test with PATHOMIQ, and an expanded MyRisk hereditary cancer panel. Full integration with leading EMR platforms like Flatiron's OncoEMR and Epic is planned for later this year, further streamlining clinical workflows. While we acknowledge the potential of MYGN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MYGN and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
MYGN Q1 Earnings Call: Guidance Cut Amid GeneSight Challenges and Slow Hereditary Cancer Ramp
Genetic testing company Myriad Genetics (NASDAQ:MYGN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 3.1% year on year to $195.9 million. The company's full-year revenue guidance of $815 million at the midpoint came in 3.7% below analysts' estimates. Its non-GAAP loss of $0.03 per share was $0.02 above analysts' consensus estimates. Is now the time to buy MYGN? Find out in our full research report (it's free). Revenue: $195.9 million vs analyst estimates of $200.4 million (3.1% year-on-year decline, 2.3% miss) Adjusted EPS: -$0.03 vs analyst estimates of -$0.05 ($0.02 beat) Adjusted EBITDA: -$640,000 vs analyst estimates of -$1.92 million (-0.3% margin, 66.6% beat) The company dropped its revenue guidance for the full year to $815 million at the midpoint from $850 million, a 4.1% decrease Adjusted EPS guidance for Q2 CY2025 is $0 at the midpoint, below analyst estimates of $0.02 EBITDA guidance for the full year is $23 million at the midpoint, below analyst estimates of $29.85 million Operating Margin: -14.8%, down from -13.8% in the same quarter last year Free Cash Flow was -$21.6 million compared to -$25.3 million in the same quarter last year Market Capitalization: $380.7 million Myriad Genetics' first quarter results reflected a combination of headwinds and pockets of growth across its genetic testing portfolio. Management attributed the revenue decline primarily to lower volumes in its GeneSight pharmacogenomics test and softness in hereditary cancer testing for unaffected patients, while also highlighting continued strength in prenatal and oncology-related products. President and CEO Sam Raha described the quarter as challenging, noting, 'Strength in our prenatal and oncology MyRisk tests were offset by softness in volume for GeneSight and unaffected hereditary cancer tests,' and acknowledged the need for improved execution in certain segments. Looking ahead, the company's full-year guidance was revised downward due to expectations for continued softness in GeneSight and hereditary cancer test volumes. Management emphasized a renewed focus on operational efficiency and product launches, especially the upcoming First Gene combined carrier screening and NIPS assay. Raha stated, 'We have started taking deliberate steps to reduce our overall projected spending while prioritizing investments and resources on driving 2025 revenue and high-value new product development.' The leadership team signaled a period of strategic reassessment, with a strategy refresh expected later this year. Myriad Genetics' management detailed the primary factors shaping first quarter performance and provided updates on business segments and upcoming initiatives. GeneSight Coverage Headwinds: The UnitedHealthcare policy change for GeneSight, effective January 1, contributed to a substantial reduction in revenue from this product line. Management explained that reduced marketing spend and commercial resources further impacted GeneSight's volume, and noted that the majority of the $35 million revenue guidance cut was tied to these dynamics. Hereditary Cancer Workflow Challenges: Hereditary cancer testing for unaffected individuals experienced flat volumes due to slower-than-anticipated adoption of electronic medical record (EMR) integrations and lower ramp from breast cancer risk assessment programs. Management cited technical workflow hurdles and outlined plans to address these issues account by account, expecting several quarters to achieve stabilization. Prenatal and Oncology Segment Growth: Prenatal tests (notably ForeSight and Prequel) and MyRisk hereditary cancer tests for affected patients showed double-digit volume growth, offsetting some declines in other areas. The company highlighted the positive impact of recent product launches and deeper account penetration in these segments. Strategic Product Pipeline: Management reaffirmed its commitment to launching the First Gene combined carrier screening and NIPS assay by mid-year, advancing the PRECISE MRD minimal residual disease test (with clinical data presented at recent conferences), and introducing an AI-enabled Prolaris test for prostate cancer by year-end. Leadership and Organizational Changes: Recent executive appointments were emphasized, including Mark Verratti as Chief Operating Officer and Brian Donnelly as Chief Commercial Officer, alongside targeted hiring in oncology R&D and biopharma services. Management described these appointments as foundational to the company's efforts to enhance execution and organizational design. Management's outlook for the remainder of the year centers on addressing operational hurdles in core product lines while prioritizing efficient investment and strategic product launches. The company's guidance reflects expectations for moderate sequential improvement and a continued focus on execution. GeneSight and Hereditary Cancer Recovery: Management plans to implement workflow solutions and targeted commercial strategies to increase GeneSight and hereditary cancer test volumes. However, they acknowledged near-term headwinds and expect a gradual ramp-up as EMR integrations and risk assessment programs scale. Cost Control and Investment Focus: The company intends to reduce discretionary spending, limit headcount growth, and reallocate resources to high-priority projects, including key product launches and EMR integration initiatives. Management expects these steps to drive incremental margin improvement without compromising strategic growth. Product Launch Milestones: Upcoming launches of the First Gene combined carrier screening/NIPS assay and the AI-enabled Prolaris test are expected to be important catalysts for revenue growth, contingent on timely execution and successful market adoption. Doug Schenkel (Wolfe Research): Questioned the complexity of Myriad's narrative and the timeline for simplifying business operations; management suggested clarity will take several months and identified oncology, volume growth, and new product launches as key metrics. Puneet Souda (Leerink Partners): Asked about potential payer risks for GeneSight beyond UnitedHealthcare and provider behavior; management stated no additional payer losses have occurred and provider ordering patterns remain stable. David Westenberg (Piper Sandler): Requested details on the slow ramp in hereditary cancer testing for unaffected patients; management attributed it to technical EMR workflow issues and outlined ongoing account-specific solutions. Matt Sykes (Goldman Sachs): Inquired about the nature of cost savings; management confirmed cuts are focused on discretionary spend and infrastructure, not core product development or commercial teams. Tejas Sawant (Morgan Stanley): Asked about MRD product sensitivity milestones and the timeline for strategy changes; management highlighted upcoming clinical data releases and committed to a phased strategy refresh by late 2025. In the coming quarters, the StockStory team will be monitoring (1) progress on workflow improvements and EMR integrations that could boost hereditary cancer and GeneSight test volumes, (2) execution and market reception of new product launches, particularly First Gene and AI-enabled Prolaris, and (3) the effectiveness of cost control measures in supporting margin stabilization. Updates on clinical data for the PRECISE MRD test and additional payer coverage wins will also be important markers of future performance. Myriad Genetics currently trades at a forward P/E ratio of 32.6×. In the wake of earnings, is it a buy or sell? Find out 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. 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
