EXAS Stock: How Targeting The ‘Most Preventable’ Cancer Drove Another Quarterly Beat

Exact Sciences (EXAS) crushed first-quarter expectations late Tuesday and raised its outlook for the year. EXAS stock broke out on the news.

X

During the March quarter, Exact Sciences’ sales surged 24% to $602 million and easily beat forecasts for $543 million. The Cologuard maker also reported a loss of 42 cents per share, shrinking from a year-ago loss of $1.04 a share. Analysts expected a bigger loss of 74 cents per share, according to FactSet.

Paul Limburg, the company’s chief medical officer, says Cologuard use is on the rise. Cologuard uses a stool sample, collected at home, to screen for colon cancer and precancerous polyps. Importantly, those polyps can be removed before they turn into cancer.

But there’s still a lot of work to be done, he told Investor’s Business Daily. About 44 million people in the U.S. are eligible for colon cancer screening, but aren’t up-to-date with current recommendations.

“This disease has been called the most preventable yet least prevented cancer,” he said. “And that’s because there’s still a lack of awareness that colorectal cancer is a condition that affects men and women, that even if you don’t have any symptoms you can still be at risk for colorectal cancer, and that there are multiple, effective options currently available for people to get screened.”

In after-hours trading on today’s stock market, EXAS stock surged 8.5% near 77. Exact shares jumped above a buy point at 72.29 out of a consolidation, MarketSmith.com shows.

EXAS Stock: Core Sales Rocket

Exact Sciences noted its core revenue is outpacing total sales growth. Sales of core products popped 33%.

Screening revenue climbed 45% to $443.2 million. Also, that business includes Cologuard and genetic testing from its PreventionGenetics business. Precision oncology sales climbed 2% to $155.4 million. Further, that segment sells Exact’s Oncotype DX, a test that determines the potential benefit of chemotherapy for breast cancer patients.

Like others in its peer group, Exact reported a massive decline in Covid-related sales. Also, revenue from its Covid testing business plunged 86% to $3.8 million.

Meanwhile, all three businesses outpaced EXAS stock analysts’ forecasts. On average, analysts expected $394 million in screening revenue, $146 million from the precision oncology business and $3 million in Covid testing sales.

Exact Sciences has beat loss expectations for five running quarters and sales estimates for 11 periods, FactSet shows.

EXAS stock has a strong Relative Strength Rating of 95 out of a best-possible 99. This puts shares in the top 5% of all stocks in terms of 12-month performance, according to IBD Digital.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Novavax Rockets 35% On Upbeat Sales View, Cuts Workforce By 25%

Shockwave Eyes Buy Point After Quarterly Beat As Boston Sci Rumors Fizzle

Get Stock Ideas From IBD Experts Each Morning Before The Open

Options Trading: How To Start Using Options, How To Manage Risk

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks