Exact Sciences (EXAS) Up 7.5% Since Last Earnings Report: Can It Continue?

Core Insights - Exact Sciences reported a narrower-than-expected loss of 9 cents per share in Q2 2024, compared to a loss of 45 cents per share in the same quarter last year, beating the Zacks Consensus Estimate of a loss of 37 cents per share [2] - The company achieved consolidated revenues of $699.3 million, reflecting a 12.4$531.6 million, up 15% year-over-year, driven by increased adoption of Cologuard by healthcare providers [4] - Precision Oncology revenues reached $167.7 million, a 7$509.4 million, while gross margin contracted by 191 basis points to 72.9% [5] - Research and development expenses increased by 16.1% to $120.9 million, while general and administrative expenses decreased by 15.2$201.9 million [5] Cash Position - At the end of Q2, Exact Sciences had cash and cash equivalents and marketable securities totaling $946.8 million, up from$652.1 million at the end of Q1 2024 [6] 2024 Guidance - The company maintained its revenue guidance for 2024, expecting total revenues between $2.81 billion and$2.85 billion, with Screening revenues projected between $2.16 billion and$2.18 billion [7] - Precision Oncology revenues are anticipated to be in the range of $655 million to$675 million, and adjusted EBITDA guidance was raised to $335 million to$355 million [8] Market Sentiment - Despite a recent positive trend in share performance, estimates for the stock have been trending downward over the past month [9] - Exact Sciences holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [11] Industry Comparison - Exact Sciences operates within the Zacks Medical - Biomedical and Genetics industry, where Bristol Myers Squibb reported revenues of $12.2 billion, reflecting an 8.7% year-over-year increase [12] - Bristol Myers has a Zacks Rank 3 (Hold), indicating a more cautious outlook compared to Exact Sciences [12]