MYGN Q1 Earnings Top Estimates, Stock Down on Weak 2025 Outlook

Core Viewpoint - Myriad Genetics, Inc. reported a narrower adjusted loss in Q1 2025 compared to the previous year, but total revenues fell short of expectations and decreased year-over-year, leading to a significant drop in share price after the announcement [1][3][10]. Financial Performance - The adjusted loss per share was 3 cents, which was 40% better than the Zacks Consensus Estimate, while the GAAP EPS remained flat compared to a loss of 29 cents in the prior year [1][2]. - Total revenues decreased by 3.1% year-over-year to $195.9 million, missing the Zacks Consensus Estimate by 2$86.3 million [4]. - Pharmacogenomics testing revenues decreased by 20% year-over-year to $31 million [4]. - Tumor Profiling testing revenues declined by 5$29.3 million [4]. - Prenatal testing revenues increased by 11% year-over-year to $49.3 million [4]. Margin and Expense Analysis - Gross margin improved by 45 basis points to 68.5$27.5 million, while SG&A expenses slightly decreased by 0.3% to $69 million [5]. - The adjusted operating loss was$29 million, compared to a loss of $27.9 million in the previous year [5]. Financial Position - At the end of Q1 2025, cash and cash equivalents were$91.8 million, down from $102.4 million at the end of Q4 2024 [6]. - Long-term debt increased to$59.3 million from $39.6 million at the end of Q4 2024 [6]. - Cumulative net cash outflow from operating activities was$16.3 million, an improvement from $18.6 million in the prior year [6]. Guidance and Outlook - The company revised its 2025 revenue guidance to a range of$807-$823 million, down from the previous estimate of$840-$860 million, reflecting challenges in the pharmacogenomics and hereditary cancer testing segments [7]. - Adjusted EPS guidance was also lowered to a loss of 2 cents to earnings of 2 cents, compared to the previous range of 7-11 cents [8]. Business Developments - The decline in GeneSight revenues was attributed to changes in UnitedHealthcare's coverage policy and a reallocation of marketing spend [10]. - The hereditary business faced challenges due to slower-than-expected electronic medical record integrations [10]. - Positive developments included growth in Prenatal testing and the upcoming commercial launch of an AI-driven prostate cancer test in partnership with PATHOMIQ by the end of 2025 [11].