Group 1: ARK Innovation ETF Overview - The ARK Innovation ETF (NYSEARCA:ARKK) has a concentrated portfolio, typically holding between 35 to 55 stocks, allowing significant investments in companies with potential to revolutionize industries [1] - The ETF is popular among investors who believe in the long-term potential of disruptive technologies and are willing to accept volatility associated with high-growth companies [1] Group 2: Verve Therapeutics (VERV) - Verve Therapeutics focuses on developing gene-editing therapies for cardiovascular diseases, utilizing base editing technology to address genetic causes of heart disease [2] - In 2023, Verve reported a net loss of $200.1 million, a 27% increase from the previous year, but achieved significant revenue growth of $11.8 million, up from $1.94 million in 2022 [2] - The company plans to advance its pipeline with key initiatives, including completing enrollment for the Heart-1 trial by the end of 2024 and providing a data update in the second half of 2024 [2][3] - Verve has a consensus Strong Buy rating from seven analysts with a predicted upside of 420.55% over the next twelve months [3] Group 3: Prime Medicine (PRME) - Prime Medicine is developing advanced gene-editing technology called prime editing, aiming to precisely edit DNA without cutting it [5] - ARKK holds 2,591,955 shares of PRME, accounting for 0.25% of its total weighting [5] - In 2024, Prime Medicine plans to initiate an IND application for PM359 targeting Chronic Granulomatous Disease (CGD) and advance its Shielded Hematopoietic Stem Cell technology [5] - The company has a strong buy rating from nine analysts with an implied upside of 141.57% [6] Group 4: Exact Sciences (EXAS) - Exact Sciences specializes in cancer diagnostics and utilizes AI to enhance early detection capabilities, with its flagship product being Cologuard for colorectal cancer screening [7] - In Q1 2024, Exact Sciences reported revenue of $637.5 million, a 5.8% increase from Q1 2023, but faced a net loss of $110 million, deeper than the previous year's loss [7] - The company is preparing for FDA approval and commercialization of Cologuard Plus and advancing its Precision Oncology portfolio [7][8] - EXAS has a strong buy rating from twelve analysts with a consensus upside of 69.52% [8]

Core Viewpoint - Exact Sciences Corporation reported a net loss of 50 cents per share in Q1 2024, which was in line with the Zacks Consensus Estimate but wider than the previous year's loss of 42 cents [1] Revenue Summary - First-quarter consolidated revenues reached $637.5 million, reflecting a year-over-year increase of 5.8% and exceeding the Zacks Consensus Estimate by 2% [2] - Screening revenues, including laboratory service revenues from Cologuard, were $474.8 million, up 7% year over year, driven by increased adoption of Cologuard by healthcare providers [3] - Precision Oncology revenues totaled $163 million, marking a 5% year-over-year increase, with Oncotype DX contributing to a 7% global expansion [3] Margin Analysis - Gross profit rose 4.9% to $467.4 million, while gross margin contracted by 64 basis points to 73.3% [4] - Research and development expenses increased by 15.9% to $110.6 million, and sales and marketing expenses rose by 2.9% to $192.4 million [4] - General and administrative expenses were up 11.9% to $243.1 million, leading to an adjusted operating loss of $78.7 million, wider than the previous year's loss of $54.1 million [4] Financial Position - At the end of Q1 2024, the company had cash and cash equivalents and marketable securities totaling $652.1 million, down from $777.6 million at the end of Q4 2023 [5] - The company reported no long-term debt on its balance sheet [5] 2024 Guidance - Exact Sciences maintained its 2024 revenue guidance, expecting total revenues between $2.81 billion and $2.85 billion, with the Zacks Consensus Estimate at $2.83 billion [6] - Screening revenues are anticipated to be in the range of $2.16 billion to $2.18 billion, while Precision Oncology revenues are expected to be between $655 million and $675 million [6] Overall Assessment - The company met earnings expectations while exceeding revenue estimates, with strong contributions from Screening and Precision Oncology segments [7] - However, rising expenses and a contracting gross margin present challenges, alongside an operating loss for the quarter [7]

Financial Data and Key Metrics Changes - First quarter revenue reached $638 million, growing 6% on a reported and core revenue basis [9] - Screening revenue was $475 million, an increase of 7%, with a 24% growth on a two-year compounded basis [9] - Precision Oncology revenue grew 5% to $163 million, or 4% on a core basis, excluding foreign exchange and M&A impacts [9] - GAAP gross margin was 70%, while non-GAAP gross margin was 73%, slightly lower year-over-year due to fixed costs from automation [10] - Net loss for the quarter was $110 million, with adjusted EBITDA at $39 million [10] - Free cash flow was negative $120 million, consistent with seasonal trends, but robust cash flow generation is expected for the rest of the year [11] Business Line Data and Key Metrics Changes - Cologuard adoption increased significantly in large health systems and organized screening programs [8] - Oncotype DX international ordering providers expanded by over 20% year-over-year [8] - The company launched a hereditary cancer test, Risk Guard, to its oncology channel [8] Market Data and Key Metrics Changes - The company tested over 1 million people globally for cancer and rare diseases in the first quarter [7] - There is a significant backlog in colonoscopy screenings, with wait times increasing to three to six months [56] - The number of patients due for rescreening continues to rise, with 400,000 new patients expected in Q2 alone [27] Company Strategy and Development Direction - The company aims to grow Cologuard and Oncotype DX as its top priorities, focusing on high-return pipeline opportunities [12] - Investments in sales and marketing are expected to yield greater demand for Cologuard and Care Gap programs in Q3 and Q4 [13] - The company is set to launch new tests over the next 18 months, including OncoDetect and Cologuard Plus, which will enhance its diagnostic capabilities [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual revenue guidance of $2.81 billion to $2.85 billion and adjusted EBITDA guidance of $325 million to $350 million [12] - The company anticipates faster year-over-year growth for the remainder of the year, particularly in the second half [12] - Management highlighted the importance of health systems and payers in improving screening rates through financial incentives [18] Other Important Information - The company ended the quarter with cash and securities of $652 million, with pro forma cash reaching $912 million after refinancing [11] - Management emphasized the need for continued investment in sales force growth to capitalize on market opportunities [72] Q&A Session Summary Question: Cologuard growth outlook and profitability drivers - Management highlighted the significant opportunity in the U.S. with 16 million people not up-to-date with colon cancer screening and the deepening customer relationships [27] - Adjusted EBITDA decline was attributed to tough comparisons from last year and the impact of automation on margins [31] Question: Competitive landscape and CAGR considerations - Management noted that new entrants face challenges in gaining acceptance in quality measures, which takes time [36] - The two-year growth rates were emphasized as informative due to unusual growth last year [38] Question: Cologuard orders and transitory impacts - Management acknowledged a more typical flu season affecting screening rates and emphasized the importance of rescreening as a growth driver [46] Question: Revenue upside and rep additions - Management indicated that adding reps would provide significant leverage and that investments in sales force growth are essential for future success [50][72] Question: Colonoscopy backlog and FIT conversion - Management reported a three to six-month backlog for colonoscopies and noted that Cologuard is converting patients from FIT tests [56][57]

分组1 - Exact Sciences reported a quarterly loss of $0.50 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.42 per share a year ago [1] - The company achieved revenues of $637.52 million for the quarter ended March 2024, exceeding the Zacks Consensus Estimate by 2.01% and up from $602.45 million year-over-year [1] - Over the last four quarters, Exact Sciences has surpassed consensus EPS estimates three times and revenue estimates four times [1] 分组2 - Exact Sciences shares have declined approximately 17% since the beginning of the year, contrasting with the S&P 500's gain of 8.8% [2] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [2] - The current consensus EPS estimate for the next quarter is -$0.25 on revenues of $698.32 million, and for the current fiscal year, it is -$0.86 on revenues of $2.83 billion [4] 分组3 - The Medical - Biomedical and Genetics industry, to which Exact Sciences belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [4] - The performance of Exact Sciences may be influenced by the overall industry outlook, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [4] - Another company in the same industry, Allogene Therapeutics, is expected to report results for the quarter ended March 2024 on May 13 [4]

Financial Performance - Total revenue for Q1 2024 was $637.5 million, compared to $602.5 million in Q1 2023, marking a 5.8% increase[181]. - Screening revenue increased to $474.8 million in Q1 2024 from $443.2 million in Q1 2023, a growth of 7.1%[181]. - Precision Oncology revenue rose to $162.7 million in Q1 2024, up from $155.4 million in Q1 2023, reflecting a 4.7% increase[181]. - The company expects continued revenue growth for Cologuard and Oncotype tests, influenced by test volume and patient adherence rates[183]. - The company expects to continue incurring net losses for the near future despite improving operating results[179]. Cash and Investments - As of March 31, 2024, the company had approximately $347.5 million in unrestricted cash and cash equivalents and $304.6 million in marketable securities[199]. - Cash used in operating activities for Q1 2024 was primarily to fund a net loss, with increased operating expenses offset by higher revenue from completed Cologuard and Oncotype tests[202]. - Cash used in investing activities increased by $246.1 million in Q1 2024 due to a shift towards fixed income securities and an $8.3 million increase in property, plant, and equipment purchases[203]. - Cash provided by financing activities decreased in Q1 2024, primarily due to $138.0 million proceeds from convertible notes issued in Q1 2023[204]. - In April 2024, the company issued $620.7 million in new Convertible Notes due in 2031, retiring $359.7 million of 2028 Notes and receiving $266.8 million in cash[206]. - The company has access to a $150.0 million revolving line-of-credit, with no funds drawn as of March 31, 2024[197]. - As of March 31, 2024, the company had $50.0 million in outstanding variable rate debt, with a potential $0.5 million increase in annual interest expense from a hypothetical 100 basis point increase in market interest rates[214]. Research and Development - The company is committed to investing in clinical trials to enhance existing products and bring new products to market, including the Cologuard Plus test[175]. - Research and development expenses increased to $110.6 million in Q1 2024 from $95.4 million in Q1 2023, a rise of 15.9%[187]. Testing and Screening - The Cologuard Plus test demonstrated an overall sensitivity of 94% for colorectal cancer at a specificity of 91%, representing a 30% relative improvement compared to previous tests[171]. - The company tested more than 1 million people globally for cancer and rare diseases[168]. - The Oncotype DX test is now reimbursed in Japan, potentially allowing over 100 women a day to learn about their cancer recurrence risk[178]. - The company plans to develop a multi-cancer screening test, Cancerguard, with a mean sensitivity of 61% and mean specificity of 98.2%[171]. - The company aims to expand screening access to underserved populations, increasing the number of tests conducted in 2024[176]. - The company is focusing on enhancing the performance characteristics of the Cologuard test to reduce false positive rates[171]. - The company has expanded the number of Oncotype DX international ordering providers by over 20% since Q1 2023[168]. Financial Controls and Reporting - There were no significant changes in internal control over financial reporting during Q1 2024 that materially affected the company's internal controls[218]. - The company had no off-balance sheet arrangements as of March 31, 2024[207]. - The company continues to evaluate its critical accounting policies and estimates, with no material changes since the 2023 Form 10-K[210]. - The company reported an increase in cash used for operating activities due to timing of payments on accounts payable and accrued expenses[202]. Other Financial Metrics - As of March 31, 2024, the company had an accumulated deficit of approximately $3.58 billion[179]. - Investment income increased significantly to $6.2 million in Q1 2024 from $0.5 million in Q1 2023[193]. - Interest expense for Q1 2024 was $7.9 million, compared to net interest income of $4.1 million in Q1 2023[194]. - The company had open foreign currency forward contracts with notional amounts of $46.2 million as of March 31, 2024, to mitigate foreign exchange rate exposure[216].

Revenue Performance - Total revenue for Q1 2024 was $638 million, a 6% increase compared to $602 million in Q1 2023[2] - Screening revenue reached $475 million, reflecting a 7% increase year-over-year[6] - Precision Oncology revenue was $163 million, up 5% from the previous year, or 4% on a core revenue basis[6] - Revenue for the three months ended March 31, 2024, was $637,524,000, representing a 6% increase from $602,450,000 in the same period of 2023[23] - Screening revenue increased by 7% to $474,798,000 from $443,195,000 year-over-year[23] - Precision Oncology revenue grew by 5% to $162,726,000 compared to $155,432,000 in the prior year[23] Financial Guidance - The company maintains its full-year 2024 revenue guidance of $2.810-$2.850 billion, with Screening revenue expected to be $2.155-$2.175 billion and Precision Oncology revenue projected at $655-$675 million[5] Operating Performance - Total operating expenses for the three months ended March 31, 2024, were $743,948,000, up from $679,541,000 in the same period of 2023[27] - Adjusted EBITDA for the three months ended March 31, 2024, was $39,204,000, down from $45,914,000 in the same period of 2023[29] Profitability and Loss - Net loss for the quarter was $110 million, or $0.60 per share, compared to a net loss of $74 million, or $0.42 per share in Q1 2023[6] - Net loss for the three months ended March 31, 2024, was $110,228,000, compared to a net loss of $74,151,000 in the prior year[29] - Non-GAAP gross profit for the three months ended March 31, 2024, was $467,423,000, with a non-GAAP gross margin of 73%[27] Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities totaled $652 million at the end of the quarter[6] - Cash and cash equivalents decreased to $347,487,000 as of March 31, 2024, from $605,378,000 at the end of 2023[21] - Free cash flow for Q1 2024 was $(119,960) thousand, compared to $(67,575) thousand in Q1 2023, reflecting a worsening cash flow situation[37] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $(257,891) thousand in Q1 2024, compared to a net increase of $178,872 thousand in Q1 2023[37] - Net cash used in operating activities for Q1 2024 was $(82,311) thousand, compared to $(38,215) thousand in Q1 2023, representing a significant increase in cash outflow[37] - Net cash provided by investing activities was $(171,438) thousand in Q1 2024, a decrease from $82,941 thousand in Q1 2023, indicating a shift towards more cash being used for investments[37] - Net cash used in financing activities was $(3,002) thousand in Q1 2024, a decrease from $133,596 thousand in Q1 2023, suggesting reduced financing activities[37] Asset and Equity Position - Total assets as of March 31, 2024, were $6,376,321,000, a decrease from $6,471,334,000 at the end of 2023[21] - Total stockholders' equity as of March 31, 2024, was $3,132,618,000, slightly down from $3,145,305,000 at the end of 2023[21] Product and Market Developments - The company delivered over one million Cologuard and Oncotype DX test results to patients in Q1 2024[3] - Exact Sciences is preparing for FDA approval and commercialization of Cologuard Plus, which features novel biomarkers and improved laboratory processes[11] - The Oncotype DX Breast Recurrence Score test is recognized as the standard of care in breast cancer treatment guidelines[12] Currency Effects - Effects of exchange rate changes on cash and cash equivalents resulted in a loss of $(1,140) thousand in Q1 2024, compared to a gain of $550 thousand in Q1 2023[37] Overall Financial Summary - Overall, the financial data indicates a challenging quarter with increased cash outflows and reduced cash reserves compared to the previous year[37]

In the latest market close, Exact Sciences (EXAS) reached $63.24, with a -0.46% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.1%.Shares of the molecular diagnostics company witnessed a loss of 2.62% over the previous month, beating the performance of the Medical sector with its loss of 4.52% and the S&P 500's loss of 3.01%.Analysts and investors alike will b ...

Exact Sciences (EXAS) is set to report its first-quarter 2024 results on May 8, after the closing bell.Earnings Surprise HistoryExact Sciences has an impeccable earnings surprise history so far. The company beat earnings estimates in each of the last four trailing quarters, delivering an average earnings surprise of 51.48%.The Zacks Consensus Estimate for first-quarter 2024 loss per share is pegged at 50 cents. The consensus estimates for first-quarter revenues of $624.9 million.Before we get into what to e ...

Market Performance - Exact Sciences (EXAS) closed at $63 22, with a -1% movement compared to the previous day, lagging behind the S&P 500's daily loss of 0 58% [1] - Over the past month, shares of Exact Sciences gained 3 17%, outperforming the Medical sector's loss of 6 07% and the S&P 500's loss of 1 09% [1] Earnings and Revenue Expectations - Exact Sciences is expected to post earnings of -$0 50 per share in its upcoming earnings report on May 8, 2024, marking a year-over-year decline of 19 05% [1] - The Zacks Consensus Estimate for revenue projects net sales of $624 95 million, up 3 73% from the year-ago period [1] - For the entire year, the Zacks Consensus Estimates forecast earnings of -$0 86 per share and revenue of $2 83 billion, indicating changes of +23 89% and +13 32%, respectively, compared to the previous year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates for Exact Sciences should be noted, as positive alterations signify analyst optimism regarding the company's business and profitability [2] - The Zacks Consensus EPS estimate has remained unchanged over the last 30 days [3] Industry and Zacks Rank - Exact Sciences presently features a Zacks Rank of 2 (Buy) [3] - The Medical - Biomedical and Genetics industry, part of the Medical sector, has a Zacks Industry Rank of 82, placing it in the top 33% of all 250+ industries [3] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3]

Full disclosure, I’m not a tremendous fan of Cathie Wood. Generally, I think she makes some terrible picks. For example, what many would consider the best Cathie Wood stocks to buy in April, and her two largest holdings were Coinbase (NASDAQ:COIN) and Tesla (NASDAQ:TSLA). Both companies’ valuations are in the stratosphere. And Coinbase is facing tremendous competition from Bitcoin (BTC-USD) ETFs, along with a potentially ruinous lawsuit by the SEC. Meanwhile Tesla is struggling amid a huge amount of competi ...