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COVID-19 Pandemic Wreaks Havoc on Myriad Genetics' Fiscal Q4 Results

By Keith Speights – Aug 14, 2020 at 6:36AM

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But there were a few encouraging signs for the molecular-diagnostics company.

Rotten, no good, horrible, abysmal! Take your pick of adjectives to describe how Myriad Genetics (MYGN -1.97%) has performed so far in 2020. Over half of the molecular-diagnostics company's market cap has been wiped out year to date.

Myriad Genetics announced its fiscal 2020 fourth-quarter results after the market closed on Thursday. While those results weren't great enough to spark a huge comeback, there were at least a few bright spots. Here are the highlights of Myriad's Q4 update.

Scientist looking through a microscope in lab.

Image source: Getty Images.

By the numbers

Myriad announced Q4 revenue of $93.2 million, a 57% drop from the $215.4 million reported in the same quarter of the previous year. This result was slightly lower than the average analyst's revenue estimate of $93.85 million.

The company reported a net loss in the fourth quarter of $55.5 million, or $0.74 per share, based on generally accepted accounting principles (GAAP). This reflected significant deterioration from the GAAP net loss of $4.3 million, or $0.06 per share, posted in the prior-year period.

Myriad's adjusted non-GAAP bottom line looked a little better. The company recorded an adjusted net loss of $23.4 million, or $0.31 per share. Although this was a lot worse than the adjusted earnings of $30.7 million, or $0.41 per share, that was chalked up in fiscal 2019 Q4, it was better than the consensus Wall Street estimate of a net loss of $0.47 per share.

Behind the numbers

Practically all of Myriad's business was negatively impacted by the COVID-19 pandemic in fiscal Q4. Revenue from hereditary cancer screening, the company's bread-and-butter business, plunged 66% year over year to $39.9 million. Its GeneSight genetic testing for antidepressant drug selection performed even worse, with sales cratering by 71% to $8.5 million.

Myriad's second-biggest moneymaker, its prenatal testing business, wasn't in much better shape. Revenue for the unit sank 34% year over year to $16.6 million.

What about the rest of Myriad's products and services? All of them experienced revenue declines of at least 27% with one exception: the company's "other" revenue totaled $4.4 million in the fourth quarter, up 175% year over year. 

However, Myriad's expenses also declined significantly during Q4. The company reported total expenses of $161.5 million, down nearly 27% from the prior-year period. 

Looking ahead

Expect plenty of continued volatility for the healthcare stock heading into Myriad's fiscal 2021. The company didn't provide any guidance for its new fiscal year because of the uncertainties created by the COVID-19 pandemic. Myriad stated that it sees "a wide range of possible financial outcomes" for fiscal 2021.

But there is some good news. Interim CEO and CFO R. Bryan Riggsbee said that Myriad "saw a significant recovery in test volume trends throughout the quarter, with volumes in late June increasing to approximately 75% of the pre-pandemic level." He added that Myriad is "investing in new capabilities such as telemedicine and direct-to-patient sample collection initiatives that will support the increase in test volumes above the Q4 levels toward pre-pandemic levels as quickly as possible." 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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