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What: Shares of molecular diagnostics company Myriad Genetics (NASDAQ:MYGN) leapt as much as 13% earlier in the trading session following better-than-expected first-quarter earnings results.
So what: For the quarter, Myriad reported a 21% increase in revenue to $133.4 million and a profit of $0.36, $0.04 better than Wall Street was expecting. Driving Myriad's strong results was a 38% increase in women's health molecular testing and a steady 16% boost in oncology testing. In addition, Myriad also boosted its full-year revenue and EPS guidance to a range of $570 million-$585 million and $1.50-$1.55, up from its previous forecast of $550 million-$565 million and $1.44-$1.48. It should be noted, though, that Myriad did mention that many of its key customers have been negatively affected by Hurricane Sandy, and that could wind up effecting results.
Now what: Another great quarter from what I consider to be a very good company. Myriad is putting all of the pieces together to drive organic growth and increase shareholder value. Furthermore, Myriad ended the quarter with $466 million in cash and no debt, which gives it ample flexibility with regard to future acquisitions and R&D projects. I feel we might be seeing the beginning of an extended run higher for Myriad.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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