Earnings to watch: Myriad Genetics (MYGN) reports Q3 results tomorrow

What happened

Myriad Genetics, a genetic testing company, will report its third-quarter earnings on Wednesday afternoon. Last quarter, revenue was $190.7 million, down 10.5% from a year earlier, and the company missed analysts' revenue and earnings-per-share estimates while its full-year revenue guidance also fell short.

Confirmed

Global impact / market context

Investors expect revenue to fall 7.1% this quarter, a steeper drop than the 3.6% decline a year earlier. That would extend a pattern of missed revenue estimates over the past two years, so the results will show whether demand for Myriad's genetic tests is stabilizing or still weakening.

Analyst inference

Some peers in the therapeutics segment have already reported third-quarter results: Biogen grew revenue 10.6% year on year and beat expectations by 6.4%, while Gilead Sciences reported revenue up 6.8%. Those figures give a comparison point for judging whether Myriad's expected decline is company-specific or industry-wide.

Analyst inference

What to watch

1. Actual third-quarter revenue compared with the analysts' expected 7.1% year-on-year decline, which is a further slowdown from the 3.6% decrease reported in the same quarter last year. Confirmed
2. Whether Myriad's full-year revenue guidance is raised, maintained, or cut again, since last quarter's guidance missed analysts' expectations significantly and guides investor views on future sales. Proposed
3. How much cash the company uses and what costs it reports, because a 10.5% revenue drop last quarter can pressure profit per sale and the cash available to fund operations. Analyst inference

Evidence

• stockstory.org