MADISON, Wis. - Exact Sciences Corp. (NASDAQ:EXAS) shares tumbled 25% after the cancer screening and diagnostic test provider reported weaker-than-expected third-quarter results and lowered its full-year guidance.
The company reported revenue of $709 million for the quarter ended September 30, up 13% YoY but falling short of analyst estimates of $716.8 million. Exact Sciences posted a net loss of -$0.21 per share, slightly worse than the -$0.20 expected by analysts.
Screening revenue, which includes Cologuard tests, rose 15% to $545 million, while Precision Oncology revenue increased 5% to $164 million. The company's adjusted EBITDA improved to $99 million, with the margin expanding 500 basis points to 14%.
Exact Sciences significantly lowered its full-year 2024 revenue guidance to $2.73-2.75 billion from its previous forecast of $2.81-2.85 billion, well below the consensus estimate of $2.83 billion. The company also reduced its adjusted EBITDA outlook to $310-320 million from $335-355 million previously.
"While we have made progress, our execution during the third quarter and updated outlook for the full year don't reflect our full potential," said Kevin Conroy, chairman and CEO of Exact Sciences. "We plan to accelerate growth in 2025, and our long-term outlook remains strong."
Despite the disappointing results, Exact Sciences highlighted several pipeline advancements, including FDA approval for its next-generation Cologuard Plus test and promising data from its blood-based colorectal cancer screening test.
The company's cash position remained strong at $1.02 billion as of September 30, with operating cash flow of $139 million and free cash flow of $113 million for the quarter.
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