What Happened?
Shares of genetic testing company Myriad Genetics (NASDAQ:MYGN) jumped 36.4% in the afternoon session after the company reported strong second-quarter earnings that surpassed analyst expectations and raised its full-year revenue forecast. The genetic testing firm announced revenue of $213.1 million, which sailed past analyst estimates of around $202 million. It also posted an adjusted profit of $0.05 per share, a significant turnaround from the minor loss that experts had predicted. A key driver for this outperformance was the company's hereditary cancer testing business, which grew 9% compared to the previous year. Bolstered by this momentum, Myriad Genetics lifted its full-year revenue guidance to a range of $818 million to $828 million and secured a new $200 million credit facility to fund its growth.
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What Is The Market Telling Us
Myriad Genetics’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. But moves this big are rare even for Myriad Genetics and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 3.8% on the news that weakness in the healthcare sector became pronounced following a poor sales report from a key competitor. The negative sentiment was partly fueled by health insurance giant UnitedHealth Group, which reported a miss on its second-quarter earnings and issued a profit warning, casting a pall over the entire sector. More directly, NeoGenomics, a company also operating in the cancer diagnostics space, reported that it had missed its second-quarter sales targets. This news, which sent NeoGenomics' stock down significantly, suggested a potentially more challenging market environment for companies involved in oncology diagnostics, a core business for Myriad Genetics.
Myriad Genetics is down 58.8% since the beginning of the year, and at $5.56 per share, it is trading 80.5% below its 52-week high of $28.60 from September 2024. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at an investment worth $449.06.
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