A month has gone by since the last earnings report for Myriad Genetics (MYGN). Shares have lost about 4.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Myriad due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Myriad Genetics Q2 Earnings and Revenues Surpass Estimates

Myriad Genetics, Inc. reported adjusted earnings of 5 cents per share in the second quarter of 2024 compared to the Zacks Consensus Estimate of a loss of 1 cent per share. The reported figure also compares to a loss of 8 cents per share in the year-ago quarter.

The quarter’s adjustments exclude amortization expenses from acquired intangible assets, equity compensations and real estate optimization, among others.

Revenues

Total revenues rose 15.3% year over year to $211.5 million in the quarter under review. The figure topped the Zacks Consensus Estimate by 2.9%. Testing volumes increased 9% year over year.

Quarter in Detail

Hereditary Cancer testing revenues rose 19% year over year to $91.5 million.

Pharmacogenomics testing revenues were $43 million, up 22% year over year.

Tumor Profiling testing revenues fell 9% year over year to $32.6 million.

Prenatal testing revenues came in at $44.4 million, up 25% year over year.

Margin Trends

The gross margin in the quarter under review expanded 105 basis points (bps) to 69.6%.

Research and development expenses rose 27.8% year over year to $27.1 million. SG&A expenses increased 3% to $144.9 million in the reported quarter.

The adjusted operating loss was $24.9 million compared with $36.2 million in the year-ago quarter.

Financial Position

Myriad Genetics exited the second quarter of 2024 with cash and cash equivalents of $92.4 million compared with $96.9 million at the end of the first quarter.

Long-term debt was $38.8 million compared with $38.7 million at the end of the first quarter.

The cumulative net cash used in operating activities at the end of the reported quarter was $16 million compared with the $34.1 million cash outflow in the year-ago period.

2024 Guidance

Myriad Genetics provided an updated 2024 outlook.

The company expects its revenues in the range of $835-$845 million (earlier $820-$840 million), suggesting 11-12% (previously 9) growth over 2023 revenues. The Zacks Consensus Estimate for the same is pegged at $834.2 million.

Adjusted earnings per share are expected in the range of 8 cents-12 cents (previously flat to 5 cents). The Zacks Consensus Estimate for the same is pegged at 3 cents.