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What happened

Myriad Genetics (NASDAQ:MYGN) is down more than 15% at 2:09 p.m. EDT after announcing earnings for its first fiscal quarter after the bell yesterday.

So what

Revenue fell 3% year over year as sales of its hereditary cancer tests fell 11%. Competition in the space resulted in declines in both volume and price. Management noted that volume returned to more normal levels by the end of the quarter, but it's stuck with lower prices. Fortunately, about 65% of revenue comes from long-term contracts signed over the last year, so eventually price changes won't be seen in the year-over-year comparisons.

Some of Myriad Genetics' other tests are experiencing substantial growth -- for example, sales of Prolaris and Endo Predict tests were up 314% and 113%, respectively -- but the hereditary cancer tests make up such a large percentage of Myriad Genetics' revenue that it mutes growth elsewhere.

Worse than the revenue line, adjusted earnings per share fell 44% year over year to $0.23 per share. Management had guided for fiscal first-quarter adjusted earnings of $0.25 to $0.27 per share.

Now what

Despite the bottom-line earnings miss, management is sticking with its fiscal 2017 guidance of revenue between $740 million and $760 million and adjusted earnings per share between $1.00 and $1.10 per share.

Investors who think Myriad Genetics can still hit those numbers are getting a deal buying at today's knocked-down price. Just be careful trying to catch that falling knife.

Brian Orelli and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.