Investors gave a thumbs down to the excellent third quarter results reported by EXACT Sciences Corporation (NASDAQ:EXAS), choosing instead to grouse about the more careful guidance issued by the company for the full year.
Exact Sciences Corp. is a molecular diagnostics company focused on the early detection and prevention of cancer. The company has exclusive intellectual property protecting its noninvasive, molecular screening technology for the detection of colorectal cancer.
Shares were marked down 14.6% to $16.73 on Tuesday, on volume of 10.49 million.
Technically, on the daily chart, the stock has violated on high volume a significant support line located at $17.61, and it can quite possibly slide as low as $14.
EXACT Sciences Corporation (NASDAQ:EXAS) has a loss-making but great third quarter
The company reported third quarter EPS of $-0.36, which beat estimates by $0.06. Revenue came in at $28.12 million, up a whopping 122.6% year on year, and ahead of expectations by $2.84 million.
The company completed approximately 68,000 Cologuard tests during the quarter, an increase of approximately 100 percent on a year on year basis. Cologuard is the company’s easy to use, noninvasive colon cancer screening test.
“Our sales and marketing campaigns continue to complement each other, driving growth in ordering providers, completed tests and revenues, which grew significantly from the same period of last year,” said Kevin Conroy, chairman and CEO of Exact Sciences. “This continuing strength is yielding not only good sequential and annual revenue growth, but expanding penetration in the large market for colon cancer screening. Cologuard and our compliance service, which helps to ensure patients are screened with our test, position Exact Sciences well for long-term growth.”
EXACT Sciences Corporation (NASDAQ:EXAS) guidance for full year 2016
The company said it expects full year revenue in the range of $93 million – $95 million, just slightly below its earlier guidance of $90 million – $100 million.
That minor tinkering with previous guidance has obviously not been taken lightly by the market.