Exact Sciences Corporation EXAS reported a net loss of 6 cents in the fourth quarter of 2024, much narrower than the Zacks Consensus Estimate of a loss of 32 cents. The reported figure compares with a loss of 27 cents in the same quarter last year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The full-year net loss was $5.59 per share, significantly higher than the Zacks Consensus Estimate of a loss of $1.20. The reported figure was also wider than the 2023 loss of $1.13 per share.
Consolidated revenues totaled $713.4 million, up 10.3% on a reported basis and 11% on a core revenue basis. The figure slightly came above the Zacks Consensus Estimate by 0.02%.
Total revenues in 2024 were $2.76 billion, beating the Zacks Consensus Estimate by 0.4% and increasing 10.4% from 2023.
Following the announcement, EXAS shares plunged 3.9% in the after-hours trading yesterday.
Segmental Review of EXAS’ Q4 Revenues
Screening revenues, including laboratory service revenues from Cologuard and PreventionGenetics, totaled $552.6 million. The figure increased 14% year over year, driven by the momentum in Cologuard adoption among providers, health systems and payers.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation Price, Consensus and EPS Surprise
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $160.9 million, a marginal increase from the year-ago quarter’s figure. This upside was propelled by the increased adoption of Oncotype DX internationally.
EXAS’ Q4 Margin Performance
Exact Sciences’ gross profit rose 8.5% year over year to $492.6 million despite a 14.4% rise in the cost of revenues (excluding the amortization of acquired intangibles). The gross margin contracted 112 basis points (bps) to 69.1%.
Research and development expenses fell 15.2% year over year to $97.7 million. Sales and marketing expenses moved up 12.9% to $244.5 million. General and administrative expenses declined 2.7% year over year to $191 million.
Overall, the adjusted operating loss totaled $40.8 million compared with the year-ago operating loss of $74.2 million.
EXAS’ Financial Update
Exact Sciences exited the fourth quarter with cash and cash equivalents and marketable securities of $1.04 billion compared with $777.6 million at the end of 2023.
Exact Sciences Initiates 2025 View
For full-year 2025, the company anticipates total revenues in the range of $3.025-$3.085 billion. The Zacks Consensus Estimate is pegged at $3.08 billion.
Among these, Screening revenues are expected in the range of $2.350-$2.390 billion. Precision Oncology revenues are expected between $675 million and $695 million.
Adjusted EBITDA is forecast in the range of $410-$440 million.
Our Take on EXAS
Exact Sciences exited the fourth quarter of 2024 with both earnings and revenues surpassing the respective estimates. The expanding customer base for the Cologuard test remains a key performance driver. The company continues to see strong adoption of Oncotype DX internationally as well.
Among major pipeline advancements, EXAS secured favorable Medicare pricing for the Cologuard Plus test, enhancing its screening capabilities. New evidence from the ASCEND 2 study supporting Cancerguard, its blood-based multi-cancer screening test, reflects the potential of a multi-omic test to improve early cancer detection.
Meanwhile, the company reported a reduced gross margin in the fourth quarter.
EXAS’ Zacks Rank and Key Picks
Exact Sciences currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-RadLaboratories BIO.
ResMed reported a second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.
Cardinal Health, carrying a Zacks Rank #2, posted a second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.
CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.
Bio-Rad Laboratories, carrying a Zacks Rank #2, posted a third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.
BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.
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