Exact Sciences Stock Down on Q3 Earnings & Revenue Miss, '24 View Cut

Core Viewpoint - Exact Sciences Corporation (EXAS) reported a net loss of 21 cents in Q3 2024, wider than the Zacks Consensus Estimate of a loss of 20 cents per share, indicating challenges in financial performance [1][11]. Financial Performance - Consolidated revenues for Q3 totaled $708.7 million, reflecting a 12.8% increase on a reported basis and 13% on a core revenue basis, but missed the Zacks Consensus Estimate by 1.2% [2]. - Screening revenues, including laboratory service revenues from Cologuard and PreventionGenetics, reached $544.9 million, up 15% year over year due to an increase in completed Cologuard tests [3]. - Precision Oncology revenues were $163.8 million, up 5% year over year, driven by a 28% international expansion of Oncotype DX [4]. - Gross profit rose 11.5% year over year to $512.6 million, while gross margin contracted by 85 basis points to 72.3% [5]. - Adjusted operating profit totaled $0.6 million, a significant improvement from the operating loss of $42.2 million in the previous year [6]. Cash Position - At the end of Q3, Exact Sciences had cash and cash equivalents and marketable securities of $588.8 million, an increase from $530.2 million at the end of Q2 2024 [7]. Revised Guidance - The company revised its total revenue forecast for 2024 to a range of $2.73-$2.75 billion, down from the previous estimate of $2.81-$2.85 billion, with Screening revenues expected to be between $2.080-$2.095 billion [8]. - Adjusted EBITDA guidance was also reduced to $310-$320 million, down from $335-$355 million [9]. Market Impact - Following the earnings announcement, EXAS shares fell nearly 30% in after-hours trading, reflecting investor concerns over the missed earnings and revenue estimates [2][11]. - The slower demand in primary-care offices and disruptions from Hurricane Helene and Milton negatively impacted Cologuard orders, which are expected to affect Q4 revenues [11][12]. Positive Developments - Despite the challenges, the company reported year-over-year revenue growth driven by increased Cologuard adoption and international expansion of Oncotype DX, along with improved profitability and milestones in cancer diagnostics [13].