Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Tuesday, JPMorgan analyst Rachel Vatnsdal revised the price target for Myriad Genetics (NASDAQ:MYGN) shares, bringing it down to $12.00 from the previous $15.00, while maintaining an Underweight rating on the stock. The adjustment followed Myriad Genetics’ fourth-quarter earnings report, which was released after Monday’s market close.
The company reported fourth-quarter revenues of $211 million, aligning with its preannouncement range of $209-211 million, but falling short of the then-Street expectation of $213 million. Despite the revenue shortfall, Myriad Genetics exceeded some financial metrics with adjusted gross margins (GMs) of 72.0%, compared to the Street’s forecast of 71.0%, and adjusted EBITDA of $11 million, surpassing the anticipated $7 million. The company has maintained strong revenue growth, with a 12.15% increase over the last twelve months, while maintaining healthy gross margins of 69.15%. InvestingPro subscribers can access 6 additional key insights about MYGN’s performance and outlook, along with comprehensive financial health metrics.
Myriad Genetics’ adjusted earnings per share (EPS) met the Street’s prediction of $0.03. The quarter’s results were affected by lower-than-expected volumes in the Hereditary Cancer Testing (HCT) business, attributed to the salesforce’s focus on the launch of the Prequel product and subdued new orders from electronic medical record (EMR) integrations. However, the company did see average selling prices (ASPs) rise by approximately 3% year-over-year in the fourth quarter.
In addition to the financial results, Myriad Genetics confirmed its 2025 guidance, which was initially presented at a January conference. The company expects revenues in the range of $840-860 million, which is below the then-Street forecast of $877 million. The guidance also includes GMs of 69.5-70.5%, adjusted EBITDA of $25-35 million, and adjusted EPS of $0.07-0.11. Current analyst targets for the stock range from $11 to $29, with three analysts recently revising their earnings estimates upward for the upcoming period. The company operates with a moderate debt level, maintaining a healthy debt-to-equity ratio of 0.2.
The company also announced a leadership change, with Paul Diaz stepping down as CEO to join a private equity firm. Sam Raha, the current COO, will take over as CEO, and Mark Verratti, the current Chief Commercial Officer (CCO), will transition to COO, effective April 30th.
Vatnsdal expressed caution regarding Myriad Genetics’ future performance, citing a deceleration in volume growth across several of its products throughout the year. Concerns were also raised about potential risks to the company’s 2025 guidance due to disruptions in EMR workflows and delayed order activity from newly integrated accounts. Vatnsdal suggested that investor preference might lean towards higher quality companies within the high-growth diagnostics space, implying a less favorable risk/reward balance for Myriad Genetics. The new price target reflects these concerns, based on a discounted cash flow (DCF) analysis looking ahead to December 2025. Despite these challenges, InvestingPro’s Financial Health Score rates MYGN as "GOOD," with particularly strong scores in relative value and price momentum metrics. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to subscribers, which provides detailed analysis of MYGN’s position within the diagnostics sector.
In other recent news, Myriad Genetics reported its Q4 2024 earnings, showing a 7% year-over-year revenue increase to $211 million, although this fell slightly short of the $213.31 million analysts had projected. The company met earnings per share (EPS) expectations with $0.03. Despite these results, Jefferies downgraded Myriad Genetics’ stock target from $13.00 to $11.00, maintaining an Underperform rating, citing ongoing challenges with the Prolaris and GeneSight products and the recent CEO transition. The company has adjusted its long-range growth plan to a double-digit percentage increase starting in 2026, down from the previously anticipated 12% growth beginning in 2025.
Myriad Genetics maintains strong liquidity with $158 million and plans to achieve revenue between $840 million and $860 million in 2025. The company anticipates a gross margin of 69.5% to 70.5% and adjusted operating expenses between $575 million and $595 million. Myriad Genetics is targeting an adjusted EPS of $0.07 to $0.11 for the full year 2025. The company has also announced a partnership with PathoMx to apply AI technology to its oncology products. This collaboration aims to enhance Myriad’s molecular and AI-powered testing solutions, particularly in prostate cancer care.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.