Myriad Genetics Lowers FY20 Financial Outlook; Shares Plunge

(RTTNews) - Myriad Genetics, Inc. (MYGN) said it now projects, fiscal 2020 adjusted earnings per share in a range of $1.00-$1.10; and revenue of $800-810 million. The company has revised its revenue accrual rate, and is forecasting lower hereditary cancer rates for fiscal 2020. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.82, on revenue of $872.35 million. Analysts' estimates typically exclude special items.

"We had a challenging start to fiscal year 2020 as hereditary cancer revenue accrual from small payers was impacted by the deletion of the historical hereditary cancer CPT codes. While the hereditary cancer business has returned to strong double-digit volume growth, the revenue accrual impact from these changes have led us to lower our financial outlook for the year," said Mark Capone, CEO, Myriad Genetics. "

For the second quarter, the company now expects: adjusted earnings per share in a range of $0.30-$0.32; and revenue of $210-$212 million. Analysts expect the company to report profit per share of $0.48, on revenue of $221.35 million.

For the first-quarter, non-GAAP earnings per share was $0.08 compared to $0.43, previous year. On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.32, for the quarter.

First-quarter revenue declined to $186.3 million from $202.3 million, previous year. Molecular diagnostic testing revenue declined 9 percent to $172.0 million. Analysts expected revenue of $202.1 million, for the quarter.

Shares of Myriad Genetics were down nearly 32% after hours.