Bullish stock to watch: EXACT Sciences Corporation (NASDAQ: EXAS)

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EXACT Sciences Corporation (NASDAQ: EXAS) stock surged over 6% on 7th May, 2020 (as of 12:24 pm GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. For screening business, which primarily includes Cologuard, the company has posted 35% rise in the revenue to $219 million due to test volume growth. About 9,000 new health care providers ordered Cologuard during the first quarter, and nearly 206,000 have ordered since launch. The company has reported the net loss of $105.7 million, compared to a net loss of $82.9 million. The cash, cash equivalents, and marketable securities were $1.2 billion at the end of the first quarter, that includes $975.5 million, net, raised in relation to the issuance of new convertible notes and the repayment of a portion of previously issued convertible notes.

EXAS in the first quarter of FY 20 has reported the adjusted loss per share of 71 cents, missing the analysts’ estimates for the adjusted earnings per share of 59 cents. The company had reported the adjusted revenue growth of 35.9 percent to $347.8 million in the first quarter of FY 20, missing the analysts’ estimates for revenue of $349.6 million, according to Refinitiv IBES Estimate. Cologuard revenue are  negatively affected in 2 key ways by COVID-19 and related actions, such as stay-at-home measures and decreased wellness visits. First, fewer Cologuard tests were ordered & secondly, patients are completing tests at a lower rate. After a 63% year-over-year fall in Cologuard test orders during the first 20 days of April, the company has recently seen a slight recovery. Orders fell by 47% year-over-year in the last 10 days of April with continued positive trends in May.

Moreover, in Precision Oncology, which mainly includes the former Genomic Health business, the company reported first quarter revenue of $128 million, with growth across all major products and geographies. In the first quarter, the segment benefited from the timing of Oncotype DX breast test volumes in the U.S. Some patients are delaying surgery because of COVID-19 fears and completed Oncotype testing earlier to help inform them whether to use chemotherapy on a neoadjuvant basis. The growth in the U.S. breast business continued in April. The company anticipates the widespread decrease in screening mammograms due to COVID-19 to negatively affect the test volumes in the coming months through the typical lag between a mammogram and an Oncotype DX test.

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