Exact Sciences (EXAS) Q2 Loss Narrower Than Expected, Sales Beat

Financial Performance - Exact Sciences reported a net loss of 9 cents per share in Q2 2024, narrower than the year-ago loss of 45 cents per share and beating the Zacks Consensus Estimate of a loss of 37 cents per share [1] - Consolidated revenues totaled $699.3 million, up 12.4% on a reported basis and 13% on a core revenue basis, beating the Zacks Consensus Estimate by 1.6% [2] - Gross profit (excluding amortization of acquired intangibles) rose 9.5% year over year to$ 509.4 million, while the gross margin contracted 191 basis points to 72.9% [4] - Adjusted operating profit totaled $1.4 million against the year-ago operating loss of$ 53.5 million [4] - The company exited Q2 with cash and cash equivalents and marketable securities of $946.8 million, up from$ 652.1 million at the end of Q1 2024 [5] Segment Performance - Screening revenues, including Cologuard and PreventionGenetics, totaled $531.6 million, up 15% year over year, driven by broad-based momentum in Cologuard adoption [3] - Precision Oncology revenues, including Oncotype products, were$ 167.7 million, up 7% year over year, with Oncotype DX expanding 31% internationally [3] - The company did not recognize any revenues from COVID testing in Q2 [3] 2024 Guidance - Exact Sciences maintained its 2024 revenue guidance, expecting total revenues in the range of $2.81-$ 2.85 billion, in line with the Zacks Consensus Estimate of $2.83 billion [6] - Screening revenues are expected to be in the range of$ 2.16- $2.18 billion, while Precision Oncology revenues are expected to be$ 655- $675 million [6] - The company raised its full-year adjusted EBITDA guidance to$ 335- $355 million, up from the previous range of$ 325- $350 million [6] Industry Comparison - Intuitive Surgical reported Q2 adjusted EPS of$ 1.78, beating the Zacks Consensus Estimate by 16.3%, with revenues of $2.01 billion topping the consensus estimate by 2% [8] - Abbott Laboratories reported Q2 earnings of$ 1.14 per share, surpassing the Zacks Consensus Estimate by 3.6%, with revenues of $10.38 billion topping the consensus estimate by 0.3% [8] - Haemonetics reported Q4 fiscal 2024 adjusted EPS of 90 cents, beating the Zacks Consensus Estimate by 2.3%, with revenues of$ 343.3 million outpacing the consensus estimate by 5% [9] Key Takeaways - Exact Sciences delivered strong Q2 results, with both top and bottom lines beating estimates, driven by robust performance in Screening and Precision Oncology segments [7] - The company continues to see momentum in Cologuard adoption and growing uptake of Oncotype DX Breast and therapy selection products [7] - However, escalating expenses and gross margin contraction remain concerns, as the company incurred a net loss in the quarter [7]