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What: Shares of Myriad Genetics
So what: Third-quarter earnings drove the stock higher today as revenue increased 13% to $102.4 million and earnings per share of $0.31 topped estimates of $0.25. Outlook for the full year is expected to be in the range of $1.06 to $1.09, also beating the $1.02 estimate from analysts.
Now what: Oncology revenue helped drive results, and gross margin hit a very impressive 89.1% in the quarter. Shares are currently trading at 19.2 times forward earnings, but when estimates are revised, higher valuation should become more attractive. I'm cautiously optimistic after this earnings beat, but I would like to see better value or a higher growth rate before jumping into shares.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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