EXACT Sciences Corporation (NASDAQ: EXAS)
EXACT Sciences Corporation released its earnings report today as expected. However, the news was anything but expected as the company blew away analyst predictions. Below, we’ll talk about what we saw from the earnings report, how the stock reacted in the market, and what we can expect to see from EXACT Sciences Corporation moving forward. So, lets get right to it…
EXAS Beats Analyst Earnings Expectations
EXACT Sciences Corporation produced a better than expected report with regard to both top-line revenue and earnings per share. Here’s what we saw…
- Revenue – While analysts expected to see $4.1 million in revenue for the quarter, EXAS actually reported $4.3 million in total revenue.
- Earnings Per Share – In the quarter, EXAS produced a loss of $0.40 per share; beating analyst expectations by 1 cent per share.
- Key Stats – In the quarter, 11,000 Cologuard tests were completed and the number of ordering physicians more than doubled; coming in at 8,300 compared to 4,100 one year ago.
How The Market Reacted To The News
As we have learned to expect in the world of biotech stocks, when positive news is produced, the price of the stock goes up. That’s exactly what we’ve been seeing from EXAS in the market today. Currently (2:28), the stock is trading at $24.57 per share after a gain of 11.58% so far today!
What We Can Expect To See Moving Forward
Unfortunately, even after the positive earnings report, I’m not too convinced that EXAS is a good stock to buy. I think that TheStreet Ratings Team hit the nail on the head with this one. Here’s what they had to say…
“We rate EXACT Sciences Corp (EXAS) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company’s weaknesses can be seen in multiple areas, such as feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.”
In the short term, I’m expecting to see a correction that leads to long term downtrends. While better than expected earnings are generally good, EXAS simply isn’t as strong as it once was and has too many red flags for me to get exited about it.
What Do You Think?
Where do you think EXAS is headed and why? Let us know in the comments below!