Exact Sciences (EXAS) stock tumbled late Wednesday after the Cologuard maker reported wide March-quarter losses, though sales came in ahead of expectations.
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Cologuard is a means of screening for colon cancer using stool collection at home. Exact Sciences says it’s an easier and speedier option than colonoscopies, given the backlog in the U.S. health care system. In the first quarter, total sales climbed 6% to $638 million. That easily topped views for $627.3 million.
But losses were wider than expected at 60 cents per share, growing from a year-earlier loss of 42 cents. Analysts polled by FactSet expected Exact Sciences to lose just 47 cents a share.
In after-hours trading on today’s stock market, Exact Sciences stock toppled more than 13% to 51.25. That put shares on deck to open Thursday at their lowest point since January 2023.
Exact Sciences Stock: Reiterated Outlook
The lion’s share of revenue came from Cologuard screenings at $475 million, up 7%. Precision oncology, which includes Exact Sciences’ Oncotype DX and therapy selection tests, climbed 5% to $163 million.
Exact Sciences kept its 2024 guidance, and expects $2.81 billion to $2.85 billion in sales. Analysts call for $2.83 billion, in line with the forecast. The outlook includes $2.16 billion to $2.18 billion from screening sales, and $655 million to $675 million from the precision oncology business.
Exact Sciences stock has been under pressure recently, falling nearly 20%, as of Wednesday’s close. The stock is a holding of Wood’s ARK Innovation (ARKK) exchange traded fund.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
