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Investing.com - Bernstein SocGen Group lowered its price target on Exact Sciences (NASDAQ:EXAS) to $60.00 from $70.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading at $41.80, with analysts’ targets ranging from $46 to $90.
The price target reduction follows what the research firm described as "surprising developments in the blood-based CRC screening program," despite Exact Sciences reporting solid quarterly results. The company’s revenue exceeded guidance and beat consensus expectations by 5%, driven largely by the commercial turnaround for core Cologuard. InvestingPro analysis shows the company maintaining strong revenue growth at 12.56% and healthy liquidity with a current ratio of 2.89.
Exact Sciences reported adjusted EBITDA of $138.22 million, surpassing consensus expectations by 27%. Management raised guidance across the board while maintaining some conservatism for the second half of the year and announced a program to achieve $150 million in annual cost savings by 2026. While currently unprofitable, InvestingPro data indicates analysts expect the company to turn profitable this year.
The stock fell 16% in after-market trading following the announcement. Bernstein SocGen noted that investors likely expected Exact’s test to demonstrate performance similar to Freenome’s, but now the company must pay upfront fees plus royalties and share some of their data.
Bernstein SocGen believes the 16% stock decline is excessive given the "incrementally negative news" and expects the positive impact of the company’s salesforce reorganization to continue helping the stock over the next several quarters.
In other recent news, Exact Sciences reported impressive second-quarter 2025 financial results, surpassing earnings expectations with an EPS of -$0.01, which was significantly better than the anticipated -$0.13. The company also achieved a revenue of $811.1 million, exceeding the forecast of $773.8 million. Despite these strong results, RBC Capital lowered its price target for Exact Sciences to $46, citing growth concerns, while maintaining a Sector Perform rating. Similarly, TD Cowen reduced its price target to $66 after a setback in the company’s blood test development, although it retained a Buy rating due to the strong quarterly performance. Piper Sandler reiterated its Overweight rating and maintained a $70 price target, emphasizing Exact Sciences’ leading role in colorectal cancer screening. The firm’s performance was highlighted by significant margin improvements and increased guidance, described by TD Cowen as the "best Cologuard quarter in a while." Analysts noted the company’s strengthened position in the rapidly evolving market for noninvasive cancer detection. These developments reflect ongoing analyst interest and differing perspectives on the company’s growth trajectory.
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