Myriad Genetics Plunge 15% On Weak Outlook, But Q2 Adj Profit Tops View
Posted: February 4, 2015 at 1:44 am
By RTT News, February 03, 2015, 10:34:00 PM EDT
(RTTNews.com) - Shares of Myriad Genetics, Inc. ( MYGN ) plunged nearly 15 percent in extended trading on Tuesday after the diagnostic-testing company provided weak guidance for the third quarter, and slashed earnings and revenue forecast for the full-year 2015.
The company also reported a profit for the second quarter that halved from last year, reflecting higher expenses and a double-digit revenue drop. However, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.
Separately, Myriad said Founder, President and CEO Peter Meldrum would retire at the end of fiscal 2015 on June 30 after leading it for the past 24 years. The company has promoted Mark Capone to succeed Meldrum to the positions.
Myriad noted that Capone, a 13-year veteran of the company, has worked closely with Meldrum and the board in charting the strategic direction and managing the overall business of the company.
Capone is currently president of Myriad Genetic Laboratories, Inc. He has almost 30 years of experience in the life science industry, having spent 17 years at Eli Lilly and Co. ( LLY ) in various positions in sales and marketing, research and development, and manufacturing.
"Myriad delivered strong financial results in its second fiscal quarter with revenues increasing nine percent over its first fiscal quarter. In particular, the transition from single cancer testing to the myRisk cancer panel has proceeded exceptionally well with myRisk revenue up 60 percent sequentially," Meldrum said in a statement.
Salt Lake City, Utah-based Myriad reported net income of $24 million or $0.32 per share for the second quarter, sharply lower than $50.4 million or $0.66 per share in the prior-year quarter.
Excluding items, adjusted net income for the latest quarter was $29.90 million or $0.40 per share, compared to $50.61 million or $0.66 per share in the year-ago quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
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Myriad Genetics Plunge 15% On Weak Outlook, But Q2 Adj Profit Tops View