Why Exact Sciences' Report Should 'Allay Fears Of A Market Slowdown'

Core Insights - Exact Sciences reported strong third-quarter results, alleviating concerns about a market slowdown, with significant growth in screening and precision oncology revenues [1][2]. Financial Performance - Screening revenue, including Cologuard tests, increased by 22% to $666 million, surpassing forecasts of $637 million [2]. - Precision oncology revenue rose by 13% to $184 million, exceeding expectations of $173 million [2]. - The company achieved an adjusted earnings per share of 24 cents, beating the forecast of 15 cents [2]. Margin and Stock Performance - Gross margin was reported at 71.2%, approximately 190 basis points below expectations, which was noted as a concern by analysts [3]. - Exact Sciences' stock surged nearly 8% to $72.25 following the earnings report, with a significant increase of almost 69% from a low of $38.81 in August [3]. Guidance and Outlook - The company raised its sales guidance for the year to a range of $3.22 billion to $3.235 billion, an increase of $77.5 million at the midpoint from previous guidance [5]. - Fourth-quarter sales guidance also exceeded expectations, projected between $851 million and $866 million [5]. - Analysts noted that both screening and precision oncology sales outperformed expectations by 500 and 600 basis points, respectively [4].