Please ensure Javascript is enabled for purposes of website accessibility

Exact Sciences Reports Q4 Earnings, Barely Misses Revenue Target

By Mark Prvulovic - Feb 11, 2020 at 6:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While revenue figures are up substantially, they fell a little short of Wall Street's expectations.

Exact Sciences (EXAS 7.96%) reported its fourth-quarter financial results on Tuesday afternoon. While the company still managed to report an impressive revenue increase, the company's net losses excluding tax benefits grew by a fair amount as well.

The company's total revenue came in at $295.6 million, just over double the $124.9 million reported back in Q4 2018. While Exact Sciences reported a profit of $77.9 million for the quarter, it came from a $184.6 million one-time income tax benefit the company reported. Factoring out this tax benefit, the company reported a net loss before tax of $106.7 million, around double the $53.9 million net loss reported last year.

Financial statements with a pen and a some glasses.

Image source: Getty Images.

One of Exact Sciences' better-known products is Cologaurd, a non-invasive stool DNA test for colorectal cancer. Overall test volume had increased by over 63% to 477,000, with the average revenue per test kit being $481. Another product the company develops is the Oncotype DX, another test that evaluates the chances that breast cancer will return in patients following surgery. Quarterly volume for this test was up a milder 13% to 41,000.

Analyst expectations

While the results were an improvement all around, they didn't meet all of Wall Street's expectations. Specifically, the biotech company fell a little bit short of the consensus revenue target, which had predicted revenue of $297.4 million. While Exact Sciences reported revenue fell short by just $1.8 million -- or less than 1% -- shares of the company were still down a little bit in after-hours trading.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exact Sciences Corporation Stock Quote
Exact Sciences Corporation
EXAS
$53.83 (7.96%) $3.97

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.