Exact Sciences (EXAS) posted a quarterly loss of $0.94 per share against the Zacks consensus estimate of a loss of $1.07. That compares to a loss of $1.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 12.15%. A quarter ago, this molecular diagnostics company was expected to post a loss of $1.12 per share when it actually produced a loss of $1.04, delivering a surprise 7, 14%.
In the past four quarters, the company has exceeded consensus EPS estimates twice.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.
Exact Sciences shares have lost about 39.3% year-to-date compared to a -13.6% decline for the S&P 500.
What is the next step for the exact sciences?
While Exact Sciences has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?
There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this publication of the results, the trend of estimate revisions for Exact Sciences: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.09 on $509.65 million in revenue for the upcoming quarter and -$4.24 on $2.02 billion in revenue for the current fiscal year .
Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, the medical – biomedical and genetics sector is currently among 33% of the more than 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
Voyager Therapeutics (VYGR), another stock in the same sector, has yet to report results for the quarter ending June 2022.
This gene therapy company is expected to post a quarterly loss of $0.56 per share in its next report, representing a +30% year-over-year change. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.
Voyager Therapeutics revenue is expected to be $2.5 million, up 83.8% from the prior year quarter.
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Exact Sciences Corporation (EXAS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.