Cathie Wood’s Favorite, Exact Sciences Stock (EXAS), Plummets Amidst Expansive Quarterly Losses

• Exact Sciences (EXAS) stock fell sharply on Wednesday following the company’s report of significant losses for the first quarter of 2021, despite sales surpassing expectations.
• The company’s Cologuard screenings, a home-based colon cancer screening method, accounted for the majority of the revenue, with sales increasing by 7% to $475 million.
• However, the company’s losses were more significant than anticipated, at 60 cents per share, compared to a predicted loss of 47 cents per share.

Exact Sciences, the maker of Cologuard, reports larger than expected losses for Q1 2021, despite a 6% increase in total sales. The company’s stock fell by over 13% in after-hours trading.

Exact Sciences Stock: A Closer Look at Q1 2021 Results

The company’s total sales for the first quarter increased by 6% to $638 million, surpassing the expected $627.3 million. However, losses were more significant than anticipated, with the company reporting a loss of 60 cents per share, compared to the predicted loss of 47 cents per share. This resulted in Exact Sciences’ stock falling by over 13% in after-hours trading, with shares expected to open at their lowest point since January 2023.

Revenue Breakdown and Future Outlook

The majority of the company’s revenue came from its Cologuard screenings, which brought in $475 million, marking a 7% increase. The company’s precision oncology segment, which includes Exact Sciences’ Oncotype DX and therapy selection tests, saw a 5% increase, bringing in $163 million. Despite the disappointing Q1 results, Exact Sciences has maintained its 2024 guidance, expecting $2.81 billion to $2.85 billion in sales, which aligns with analysts’ predictions.

Recent Performance and Market Reaction

Exact Sciences’ stock has been under pressure recently, with a nearly 20% drop as of Wednesday’s close. The stock is part of Wood’s ARK Innovation (ARKK) exchange traded fund. The market reaction to the Q1 results was swift, with the stock falling more than 13% in after-hours trading.

Conclusion

Despite exceeding sales expectations for Q1 2021, Exact Sciences’ larger than expected losses have negatively impacted its stock performance. However, the company remains confident in its future outlook, maintaining its 2024 sales guidance. Investors and market watchers will likely keep a close eye on the company’s performance in the coming quarters.