MADISON, Wis. - Exact Sciences Corp. (NASDAQ:EXAS) reported a first-quarter earnings miss, which led to a significant 10% drop in its share price. The company, known for its cancer screening and diagnostic tests, announced a net loss of $110 million, or -$0.60 per share, for the quarter ended March 31, 2024.
This result was more substantial than the analyst consensus, which had predicted a loss of -$0.48 per share. Despite the earnings shortfall, revenue for the quarter was $638 million, exceeding the consensus estimate of $627.35 million and marking a 6% increase from the $602 million reported in the same quarter of the previous year.
Exact Sciences' performance in the first quarter was driven by a 7% increase in Screening revenue, which totaled $475 million, and a 5% rise in Precision Oncology revenue, reaching $163 million.
The company's gross margin stood at 70%, with an adjusted gross margin, excluding amortization of acquired intangible assets, at 73%. However, the net loss widened from the $74 million, or -$0.42 per share, reported in the first quarter of 2023, leading to the negative investor response.
Kevin Conroy, chairman and CEO of Exact Sciences, commented on the quarter's results, stating, "Our team delivered more than a million Cologuard® and Oncotype DX® test results to patients and advanced our deep pipeline of life-changing cancer diagnostics." He expressed confidence in the company's global expansion and the momentum of their commercial engine.
Looking ahead, Exact Sciences has maintained its full-year 2024 revenue guidance, projecting $2.81 to $2.85 billion, with Screening revenue expected to be between $2.155 and $2.175 billion and Precision Oncology revenue forecasted at $655 to $675 million. The midpoint of this guidance, $2.83 billion, aligns closely with the analyst consensus of $2.833 billion, indicating that the company's outlook remains in line with market expectations.
The company's balance sheet showed $652 million in cash, cash equivalents, and marketable securities at the end of the quarter. Despite the earnings miss, Exact Sciences reaffirmed its commitment to its mission of eradicating cancer and its focus on delivering a seamless customer experience and high-quality diagnostics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.