Exact Sciences Stock Plunges After Q3 Miss, Guidance Cut: Retail Stays Mostly Positive

Cancer screening and diagnostics company Exact Sciences, Inc.’s ($EXAS) shares tumbled in pre-market trading on Monday as traders reacted negatively to its third-quarter earnings report.

Madison, Wisconsin-based Exact Sciences reported a third-quarter loss of $0.21, wider than the $0.20-per-share consensus estimate. 

Revenue climbed 13% year-over-year (YoY) to $709 million compared to Wall Street’s average estimate of $716.8 million. Screening revenue rose 15% to $545 million and precision oncology revenue was up a more modest 5% to $164 million.

The company ended the quarter with cash, cash equivalents and marketable securities of $1.02 billion.

Exact Sciences slashed its full-year 2024 revenue guidance from $2.81 billion - $2.85 billion to $2.73 billion - $2.75 billion, with cuts to both screening and precision oncology revenues. Analysts, on average, model revenue of $2.81 billion for the year.

The company also reduced its adjusted earnings before interest, taxes, depreciation and amortization revenue from $335 million-$355 million to $310 million-$320 million.

Following the double miss and the sub-par guidance, Exact Sciences stock snagged a slew of downward price target adjustments, according to the Fly. Evercore ISI and Canaccord Genuity took down their respective price targets by $20 each, Stifel by $15, BTIG by $16, and BofA by $13. Benchmark analysts said they see the post-earnings weakness as a buying opportunity.

Some retailers weren’t ready to give up on the stock. A user on Stocktwits said the company has zero competition and so has no qualms about “loading the boat.”

Another called the sell-off as an over-reaction and said the stock will likely settle at $60.

Others deemed it fit to invest in a growth exchange-traded fund that grows up slowly over time rather than putting their money in the stock.

As of 9:10 am ET, Exact Sciences shares were down 17.49% at $59, off the premarket low of around $51.55.

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