Exact Sciences Shares Plunge Amid Weak Results and Downgraded Guidance

MADISON, Wis. - Shares of Exact Sciences Corp. (NASDAQ:EXAS), a provider of cancer screening and diagnostic tests, fell 25% following third-quarter results that missed expectations and a reduced full-year guidance. The company reported revenue of $709 million for the quarter ending September 30, marking a 13% increase year-over-year, but falling short of analysts' estimates of $716.8 million. Exact Sciences posted a net loss of $0.21 per share, slightly worse than the anticipated loss of $0.20 per share.

Screening revenues, which include Cologuard tests, rose 15% to $545 million, while Precision Oncology revenues increased 5% to $164 million. The company's adjusted EBITDA grew to $99 million, with the margin expanding by 500 basis points to 14%.

Exact Sciences significantly lowered its full-year revenue guidance for 2024 to $2.73 billion to $2.75 billion, down from its previous estimate of $2.81 billion to $2.85 billion. This new guidance is well below the consensus estimate of $2.83 billion. The company also reduced its adjusted EBITDA expectations from $335 million to $355 million to $310 million to $320 million.

Kevin Conroy, Chairman and CEO of Exact Sciences, stated, "While we have made progress, our performance in the third quarter and the updated outlook for the full year do not reflect our full potential. We plan to accelerate growth in 2025, and our long-term outlook remains strong."

Despite the disappointing results, Exact Sciences highlighted several pipeline advancements, including FDA approval for the next-generation Cologuard Plus test and promising data from a blood-based colorectal cancer screening test. The company's cash position remained strong at $1.02 billion as of September 30, with operating cash flow for the quarter at $139 million and free cash flow at $113 million.