Why Is Exact Sciences (EXAS) Down 17.5% Since Last Earnings Report?

Core Insights - Exact Sciences reported a net loss of $0.50 per share in Q1 2024, which was in line with the Zacks Consensus Estimate but wider than the previous year's loss of$ 0.42 [2] - The company's consolidated revenues for Q1 2024 were $637.5 million, reflecting a year-over-year increase of 5.8% and exceeding the Zacks Consensus Estimate by 2% [3] Revenue Breakdown - Screening revenues, including laboratory services from Cologuard, were$ 474.8 million, up 7% year-over-year, driven by increased adoption of Cologuard by healthcare providers [4] - Precision Oncology revenues reached $163 million, marking a 5% year-over-year increase, with Oncotype DX contributing to a 7% global expansion [4] Margin and Expenses - Gross profit rose 4.9% to$ 467.4 million, but gross margin contracted by 64 basis points to 73.3% [5] - Research and development expenses increased by 15.9% to $110.6 million, while sales and marketing expenses rose by 2.9% to$ 192.4 million [5] Financial Position - At the end of Q1 2024, Exact Sciences had cash and cash equivalents of $652.1 million, down from$ 777.6 million at the end of Q4 2023, with no long-term debt reported [6] 2024 Guidance - The company maintained its revenue guidance for 2024, expecting total revenues between $2.81 billion and$ 2.85 billion, with Screening revenues projected between $2.16 billion and$ 2.18 billion [7][8] Estimate Trends - Recent estimates for the company have trended downward, with a significant shift of -44.09% noted [8] VGM Scores - Exact Sciences currently holds a poor Growth Score of F and a similar score for momentum, with an overall VGM Score of F, placing it in the bottom 40% for investment strategies [9] Industry Comparison - In comparison, Geron (GERN), another player in the Zacks Medical - Biomedical and Genetics industry, reported a revenue increase of 1400% year-over-year, although it also faced losses [11]