Exact Sciences (EXAS) to Post Q4 Earnings: What's in Store?
Exact Sciences Corporation EXAS is set to report fourth-quarter 2022 results on Feb 21, after the closing bell.
In the last reported quarter, the company reported a net loss of 84 cents, which was narrower than the Zacks Consensus Estimate of a loss of $1.10. The company surpassed earnings estimates on one occasion and missed on the other three, reporting a negative earnings surprise of 0.57% on average.
Let’s look at how things have shaped up prior to this announcement.
Factors at Play
Exact Sciences’ Screening segment’s fourth-quarter performance is expected to have benefited from a continued increase in Cologuard volume. Per the last-reported quarter's earnings call, roughly 292,000 healthcare providers ordered Cologuard since its launch, with 10,000 new orders received in the third quarter. Moreover, the company added 65,000 new ordering healthcare providers, which is expected to have benefited fourth-quarter performance.
The Zacks Consensus Estimate for Screening revenues is pegged at $358 million, indicating 29.9% growth from the year-ago figure.
The Precision Oncology segment is likely to have gained in Q4 from the continued uptake of its trusted Oncotype brand. During the third-quarter earnings update, the company noted that the Oncotype DX Breast test is witnessing greater market adoption by helping in the diagnosis of 1.3 million women with early-stage breast cancer. The company also added a new test to support comprehensive tumor profiling for advanced cancer, oncomapExTra in the last quarter. This trend is likely to have continued in the to-be-reported quarter, further reinforcing the strength of the Oncotype DX test and boosting the segment’s performance.
Exact Sciences Corporation Price and EPS Surprise
Exact Sciences Corporation price-eps-surprise | Exact Sciences Corporation Quote
In December 2022, Exact Sciences presented new data supporting the clinical value of its Precision Oncology portfolio. The data highlights the Oncotype DX Breast Recurrence Score test, Oncomap ExTra test, a new investigational test to predict radiation therapy benefit, and an initial look at Exact Sciences' tumor-naive minimal residual disease (MRD) approach. It is anticipated to have had a beneficial impact on the to-be-reported quarter’s performance as well.
The Zacks Consensus Estimate for Precision Oncology revenues is pinned at $140 million, indicating 6% decline from the year-ago reported number.
The COVID Testing sales are likely to have declined on a year-over-year basis in the fourth quarter, owing to a strong comparison with the year-ago period’s levels. Even as the effects of the pandemic fade, COVID-19 continues to be a public health concern. Throughout the to-be-reported quarter, the demand for COVID-19 testing might have remained highly volatile.
The Zacks Consensus Estimate for COVID-19 Testing revenues is pinned at $5.67 million, indicating 87.9% decline from the year-ago reported number.
The Zacks Consensus Estimate for the company’s fourth-quarter 2022 revenues is pegged at $519.3 million, suggesting a rise of 9.6% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2022 net loss is pinned at 90 cents, suggesting a rise from the year-ago quarter’s net loss of $1.28.
What Our Model Suggests
Our proven model predicts an earnings beat for Exact Sciences this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The company has an Earnings ESP of +11.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Lantheus Holdings, Inc. LNTH has an Earnings ESP of +1.82% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 23. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus has an expected earnings growth rate of 10.9% for 2023. LNTH’s earnings yield of 6.99% compares favorably with the industry’s 0.00%.
Haemonetics Corporation HAE has an Earnings ESP of +2.53% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter fiscal 2023 results on Feb 7.
HAE’s next-year earnings growth rate is estimated at 5.4%. HAE’s earnings yield of 3.4% compares favorably with the industry’s 0.00%.
Laboratory Corporation of America Holdings or LabCorp LH currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is expected to release fourth-quarter 2022 results on Feb 16.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
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