Exact Sciences delivered a first-quarter report that "checked all the boxes," an analyst said as EXAS stock broke out early Wednesday.
The company makes Cologuard, a stool-based test for colorectal cancer. Chief Medical Officer Paul Limburg says this is the "most preventable yet least prevented" form of cancer. During the March quarter, screening revenue surged 45% and beat expectations by $48.9 million, according to FactSet. Exact carried that forward, increasing its full-year sales guidance by $110 million at the midpoint.
Meanwhile, colon cancer screening rival Guardant Health put up its own sales beat and announced the results of a new study for its blood-based colon cancer test. The study shows Guardant's Shield blood test has an early-stage detection rate in range with other non-invasive tests for colon cancer. That would include Exact's Cologuard.
On today's stock market, EXAS stock surged 10.9% to close at 78.73. That put shares above a buy point at 72.29 out of a consolidation, according to MarketSmith.com. GH stock also catapulted itself 14.9%, ending the regular session at 27.57 after retaking its 50-day moving average.
EXAS Stock: Sales Rocket
Overall, Exact Sciences sales surged 24% to $602 million and easily beat forecasts for $543 million. The Cologuard maker also reported a loss of 42 cents per share, shrinking from a year-earlier loss of $1.04 a share. Analysts had expected a bigger loss of 74 cents per share, according to FactSet.
Cologuard uses a stool sample to screen for colon cancer and precancerous polyps. Importantly, the polyps can be removed before they turn into cancer. Still, about 44 million people in the U.S. are eligible for screening, but aren't up-to-date with current recommendations, Limburg said in an interview.
"This disease has been called the most preventable yet least prevented cancer," he said. "And that's because there's still a lack of awareness that colorectal cancer is a condition that affects men and women, that even if you don't have any symptoms you can still be at risk for colorectal cancer, and that there are multiple, effective options currently available for people to get screened."
In addition to Cologuard, Exact's screening sales include genetic testing from its PreventionGenetics business. Further, precision oncology sales climbed 2% to $155.4 million. That segment sells Oncotype DX, a test that determines the potential benefit of chemotherapy for breast cancer patients.
11 Consecutive Sales Beats
Like others in its peer group, Exact reported a big decline in Covid-related sales. Revenue from its Covid-testing business plunged 86% to $3.8 million.
But all three segments outpaced EXAS stock analysts' expectations. Analysts predicted $394 million in screening sales, $146 million from the precision oncology business and $3 million in Covid testing sales. Overall, Exact has beat loss expectations for five running quarters and sales estimates for 11 periods.
Guardant Health, a rival that uses blood testing to screen for colon cancer, also put up a strong revenue number in the first quarter, though losses were deeper than expected by a penny. Sales increased 34% to $128.7 million, above GH stock analysts' forecast for $117.9 million.
The company lost $1.30 per share, however. That deepened by 9 cents per share year over year and just missed expectations for a narrower $1.29 per-share loss.
Like Exact Sciences, Guardant Health raised its outlook and now expects $535 million to $545 million in sales this year, up 19%-21%. The new guidance is an increase of $7.5 million at the midpoint.
However, GH stock is not highly rated with a low Relative Strength Rating of 15 out of a best-possible 99, according to IBD Digital. This puts Guardant's stock performance in the bottom 15% of all stocks over the past 12 months. EXAS stock, though, has an RS Rating in the top 4% of all stocks.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
