Shares of Myriad Genetics (MYGN) - Get Report plunged after the molecular diagnostics company reported quarterly earnings that greatly trailed analysts' forecasts and sharply reduced guidance for fiscal 2020.
For the fiscal first quarter ended Sept. 30, adjusted earnings per share, which leave out stock-based compensation and acquisition charges, totaled 8 cents, far below analysts' expectation of 31 cents.
Revenue fell 7.9% in the latest quarter from a year earlier to $186.3 million, trailing analysts' estimates of $202.3 million.
The Salt Lake City-based company booked a net loss of $20.6 million, or 28 cents a share, widening from a loss of $700,000, or 1 cent a share, a year ago.
Myriad Genetics also slashed its fiscal 2020 estimate for adjusted EPS to a range of $1 to $1.10 from a range of $1.80 to $1.90. It also cut its revenue guidance to a range of $800 million to $810 million from a range of $865 million to $875 million.
"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," Myriad Genetics CEO Mark Capone said in a statement.
"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."
The company's shares traded at $21.49, falling a whopping 38.77% from Monday. That left the stock down 26% year to date.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.