Exact Sciences Guidance Beat Street View, Analyst Says Company Fires All Cylinders

Exact Sciences Corp's EXAS Q1 revenues increased 24% Y/Y to $602 million, beating the average Wall Street estimate of $543.46 million.

Core revenue was $597.8 million, an increase of 33%. COVID-19 testing revenue was $3.8 million, a decrease of 86%. Screening revenues rose 45% to $443.2 million in Q1, while Precision Oncology revenues were up 2% at $155.4 million.

Exact reported a Q1 EPS loss of $(0.42), compared to $(1.04) a year ago. Analysts had expected an EPS loss of $(72).

Guidance: Exact has increased the FY23 sales guidance to $2.38-$2.42 billion from prior guidance of $2.265-$2.315 billion versus the consensus of $2.3 billion.

The outlook assumes screening revenues of $1.77-$1.795 billion compared to $1.66-$1.69 billion expected earlier. The company expects precision oncology revenue of $605-$620 million and COVID-19 testing revenue of $5 million.

William Blair writes that Exact Sciences exceeded expectations in the first quarter and raised guidance by more than the beat. The analyst says this quarter is another in a series in which the company shows the platform's power.

It reiterates its Outperform rating and sees room for a move higher from this valuation (5.6 times 2024 consensus) as upside to numbers is delivered, and the company fortifies its position as a dominant player across the oncology testing landscape.

Price Action: EXAS shares are up 10.5% at $78.47 on the last check Wednesday.