Diagnostic company Exact Sciences Corporation (NASDAQ:EXAS) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Exact Sciences missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $708.7 million, up 12.8% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Exact Sciences a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Exact Sciences’s revenue to grow 8.5% year on year to $702.1 million, slowing from the 17% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Exact Sciences has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at Exact Sciences’s peers in the biotechnology segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Regeneron delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 1%, and Incyte reported revenues up 16.3%, topping estimates by 3%. Regeneron traded up 7.7% following the results while Incyte was down 10.6%.
Read our full analysis of Regeneron’s results here and Incyte’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the biotechnology stocks have shown solid performance, the group has generally underperformed, with share prices down 2.4% on average over the last month. Exact Sciences is down 9.1% during the same time and is heading into earnings with an average analyst price target of $72.19 (compared to the current share price of $49.31).
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