The genetic testing company announced its fiscal 2020 first-quarter results after the market closed on Monday. And it looks like there will be another famine. Here are the highlights from Myriad's first-quarter update.
By the numbers
Myriad Genetics reported revenue of $186.3 million in the first quarter. This reflected an 8% decline from the prior-year period revenue of $202.3 million. The consensus analysts' estimate projected Q1 revenue of $202.1 million.
The company announced a net loss in the first quarter of $20.6 million, or $0.28 per share, based on generally accepted accounting principles (GAAP). This was significantly worse than Myriad's GAAP net loss of $700,000, or $0.01 per share, in the same quarter last year.
Myriad posted non-GAAP (adjusted) earnings of $0.08 per share, down 81% from earnings of $0.43 per share in the prior-year period. This came in well below the average analysts' adjusted earnings estimate of $0.32 per share.
Behind the numbers
CEO Mark C. Capone acknowledged that Myriad "had a challenging start to fiscal year 2020." He stated that the "deletion of the historical hereditary cancer CPT [current procedural terminology] codes" made a big impact on Myriad's hereditary cancer revenue accrual. Hereditary cancer revenue fell 10% from the prior-year period to $104.5 million.
That wasn't Myriad's only problem, though. Sales for the company's GeneSight gene test for antidepressants sank 22% year over year to $22.7 million. Revenue from Myriad's Vectra diagnostic test for rheumatoid arthritis also fell 15% lower to $11 million.
The only bright spot in the company's Q1 results was its prenatal genetic testing. Prenatal revenue jumped 30% year over year to $23.5 million.
Myriad's operating expenses rose 3% from the prior-year period to $207.2 million. This higher spending combined with the revenue shortfall resulted in the company's dismal bottom line.
Myriad expects that revenue for full-year 2020 will be between $800 million and $810 million. The company anticipates a GAAP loss of between $0.25 and $0.15 per share. Adjusted non-GAAP earnings per share are expected to come in between $1.00 and $1.10.
For the second quarter, Myriad is looking for revenue between $210 million and $212 million. The company projects GAAP earnings per share between $0.00 and a $0.02 loss. Myriad also anticipates non-GAAP adjusted earnings per share in Q2 between $0.30 and $0.32.
Myriad definitely got off to a bad start in fiscal 2020. However, Capone said, "Despite this setback, we expect earnings to be significantly higher in the second half of the fiscal year and believe that a number of important upsides will materialize during the fiscal year generating momentum as we transition into fiscal year 2021."
It's always good to have a long-term perspective when investing in stocks. That's especially the case for Myriad Genetics as its current famine begins.