Exact Sciences(US:EXAS) Benzingaยท2025-08-07 18:56Core Viewpoint - Exact Sciences Corp. reported a narrower EPS loss and increased revenues, indicating strong performance in its Screening and Precision Oncology segments [1][2]. Financial Performance - The company reported a second-quarter 2025 EPS loss of 1 cent, an improvement from a 9-cent loss a year ago, and better than the analyst consensus loss estimate of 19 cents [1]. - Revenues increased to $811.085 million, surpassing the consensus estimate of $774.34 million, with a 16% increase in sales on both reported and core revenue bases [1]. - Gross margin was reported at 69%, with an adjusted gross margin of 72% [2]. Product Development - Initial results from an internal colorectal cancer blood test showed sensitivities of 73% for colorectal cancer and 14% for advanced precancerous lesions at 90% specificity, with ongoing internal testing [2]. - Exact Sciences announced the acquisition of exclusive rights to Freenome's blood-based colorectal cancer screening tests, which achieved sensitivities of 81% for colorectal cancer in recent studies [5]. Guidance and Outlook - The company raised its fiscal 2025 sales guidance to $3.13 billion-$3.17 billion, compared to the previous guidance of $3.07 billion-$3.12 billion, with a Screening segment forecast of $2.44 billion-$2.47 billion [3]. - Adjusted EBITDA for 2025 is expected to be between $455 million and $475 million, an increase from the previous guidance of $425 million-$455 million [4]. Analyst Reactions - Analysts are focused on the acquisition of Freenome's rights, viewing it as a strategic move to enhance revenue potential and mitigate competitive threats [7][8]. - William Blair noted that the deal strengthens Exact Sciences' position in noninvasive colorectal cancer screening and expects improved performance in the coming years [9]. - Barclays and RBC Capital adjusted their price forecasts downward, while UBS maintained a neutral stance, reflecting mixed market sentiment [10].