MYGN Q4 Earnings Meet Estimates, Revenues Rise Y/Y, Stock Down

Core Insights - Myriad Genetics, Inc. reported fourth-quarter 2024 adjusted earnings of 3 cents per share, matching the Zacks Consensus Estimate, while the GAAP loss was 47 cents compared to a loss of 36 cents in the prior-year quarter [1][2] Financial Performance - Total revenues increased by 7.1% year over year to $210.6 million, slightly exceeding the Zacks Consensus Estimate by 0.2% [3] - For the full year 2024, revenues reached $837.6 million, reflecting an 11% rise from the previous year, also surpassing the Zacks Consensus Estimate by 0.1% [3] Revenue Breakdown by Segments - Hereditary Cancer testing revenues rose 6% year over year to $94.3 million [4] - Pharmacogenomics testing revenues increased by 14% year over year to $40.6 million [4] - Tumor Profiling testing revenues decreased by 4% year over year to $30.8 million [4] - Prenatal testing revenues grew by 12% year over year to $44.9 million [4] Margin and Expense Analysis - Gross margin expanded by 299 basis points to 71.7% [5] - Research and development expenses rose by 41.4% year over year to $29.7 million [5] - Selling, general and administrative (SG&A) expenses increased by 7.3% to $72 million in the reported quarter [5] - The adjusted operating loss was $17.3 million, an improvement from a loss of $31.4 million in the year-ago quarter [5] Financial Position - Myriad Genetics ended the fourth quarter of 2024 with cash and cash equivalents of $102.4 million, down from $132.1 million at the end of 2023 [6] - Long-term debt increased to $39.6 million from $38.5 million at the end of 2023 [6] - Cumulative net cash inflow from operating activities was $6.6 million, a significant improvement from an outflow of $54.7 million in the year-ago period [6] Future Guidance - For 2025, Myriad Genetics forecasts revenues between $840 million and $860 million, indicating a growth of 9%-11% over the prior year [7] - Adjusted earnings per share (EPS) are expected to be in the range of 7-11 cents, with the Zacks Consensus Estimate at 9 cents [8] - For the first quarter, revenues are anticipated to be between $196 million and $204 million, compared to the Zacks Consensus Estimate of $212.7 million [8] Strategic Developments - The company announced a strategic partnership with jscreen to enhance its hereditary cancer and reproductive genetics products [10] - A collaboration with PATHOMIQ was established to integrate AI technology into its Oncology portfolio, including an exclusive license for prostate cancer [11] Overall Assessment - Myriad Genetics demonstrated stable earnings and revenue growth, driven by demand for Pharmacogenomics and Prenatal testing, marking its second consecutive year of double-digit expansion [9]