Myriad Genetics Q2 Results Miss Street, Outlook Weak; Shares Tank 29%

(RTTNews) - Shares of Myriad Genetics Inc. (MYGN) plunged 29% in extended trading session on Thursday after the company reported a second-quarter profit and revenues that fell short of analysts estimates and also issued a weak outlook.

Second-quarter net loss was $8.3 million or $0.11 per share, compared with net profit of $2.6 million or $0.03 per share last year.

Adjusted earnings for the quarter dropped to $0.23 per share from $0.38 per share last year. On average, 7 analysts polled by Thomson Reuters estimated earnings of $0.31 per share for the quarter.

Second-quarter revenues dropped to $195.1 million from $216.8 million last year. Analysts had a consensus revenue estimate of $209.8 million for the quarter.

"Revenue in the fiscal second quarter fell short of expectations largely due to the prenatal business. Prenatal cash collections were negatively impacted by issues in billing operations that occurred during the transition of the homegrown Counsyl billing system to an industry-standard system used by Myriad," said CEO Bryan Riggsbee.

Looking forward to the full year 2020, the company expects revenues of $735 million and adjusted earnings of $0.45 per share. Analysts currently estimate earnings of $1.06 per share and revenues of $807.31 million.

For the third quarter, Myriad expects revenues of $172 million and adjusted earnings of $0.02 per share. Analysts currently estimate earnings of $0.30 per share and revenues of $201.22 million.

MYGN closed Thursday's trading at $29.29, down $0.24 or 0.81%, on the Nasdaq. The stock further slipped $8.49 or 28.99% in the after-hours trading.