MYGN Beats on Q3 Earnings and Revenues, Raises '24 EPS View

Core Viewpoint - Myriad Genetics, Inc. reported better-than-expected earnings and revenues for Q3 2024, driven by strong growth across its product portfolios, although the company still faced an operating loss during the quarter [8][10]. Financial Performance - Adjusted earnings for Q3 2024 were 6 cents per share, surpassing the Zacks Consensus Estimate of 2 cents, compared to a loss of 3 cents per share in the same quarter last year [1]. - Total revenues increased by 11% year over year to $213.3 million, exceeding the Zacks Consensus Estimate by 1.7% [3]. - Testing volumes rose by 6% year over year [3]. Revenue Breakdown - Hereditary Cancer testing revenues grew by 5% year over year to $90.5 million [4]. - Pharmacogenomics testing revenues reached $47.7 million, marking a 34% increase year over year [4]. - Tumor Profiling testing revenues increased by 5% year over year to $31.6 million [4]. - Prenatal testing revenues amounted to $43.5 million, up 10% year over year [4]. Margin and Expenses - Gross margin expanded by 24 basis points to 70.2% [5]. - Research and development expenses rose by 18.8% year over year to $28.5 million [5]. - Selling, general and administrative (SG&A) expenses increased by 2.2% to $139.1 million [5]. - The adjusted operating loss was $17.8 million, an improvement from a loss of $25.8 million in the previous year [5]. Financial Position - Cash and cash equivalents at the end of Q3 2024 were $99.9 million, up from $92.4 million at the end of Q2 2024 [6]. - Long-term debt was $39 million, slightly up from $38.8 million at the end of Q2 2024 [6]. - Cumulative net cash used in operating activities was $15.3 million, significantly reduced from $56.2 million in the year-ago period [6]. Guidance - The company updated its 2024 revenue guidance to a range of $837-$843 million, indicating 11-12% growth year over year, while the previous guidance was $835-$845 million [7]. - Adjusted EPS guidance was raised to a range of 12-14 cents, up from the earlier projection of 8-12 cents [7]. Strategic Developments - Myriad Genetics established additional research collaborations with leading cancer research institutions, enhancing its research capabilities [9]. - The company expanded payor coverage for several products, including GeneSight, which may improve market access and revenue potential [9].