Exact Sciences Expects To Beat 4Q Revenue Estimates; Street is Bullish

Exact Sciences provided preliminary guidance for its fourth quarter performance as per which, the company expects to exceed consensus revenue estimates.

In an SEC filing, Exact Sciences (EXAS) stated that it expects its 4Q overall revenue to beat the FactSet consensus estimate of $427 million. The company also anticipates its screening revenue and precision oncology revenue to top FactSet’s consensus estimates of $230 million and $104 million, respectively. Additionally, it estimates that COVID-19 testing revenue will come in ahead of FactSet’s $92 million consensus forecast.

The company disclosed that it has not yet completed the preparation of its financial statements for 4Q or the full year. (See EXAS stock analysis on TipRanks)

In reaction to the 4Q update, Canaccord Genuity analyst Max Masucci reiterated a Buy rating on Exact Sciences with a price target of $160. The 5-star analyst stated, “We are encouraged to see resilience in EXAS’ screening segment, which is expected to deliver Y/Y growth in Q4 despite COVID-19 resurgences that have been stronger and sharper than previously anticipated.”

“While we expect to learn more over the next week, we view today’s update as a positive sign that one or several of EXAS’ growth drivers are taking hold, namely 1) electronic Cologuard ordering; 2) telehealth ordering; 3) Cologuard’s ability to dig clinicians out of a routine colonoscopy backlog; and 4) a rapidly growing 3-year rescreening opportunity,” added Masucci.

Meanwhile, Exact Sciences also announced that Mark Stenhouse has left his position as General Manager, Screening, and will be succeeded by Pat Setji, the company’s Vice President, Business Operations, until a permanent replacement is named. Mr. Stenhouse will assist with the transition as an advisor and remain a non-executive employee of the company through March-end.

Additionally, the company revealed the completion of its previously announced acquisition of Thrive Earlier Detection Corp., which is developing CancerSEEK, a liquid biopsy test that is designed to detect many cancers at earlier stages of the disease.

Overall, 8 Buys and 2 Holds add up to a Strong Buy analyst consensus for Exact Sciences. With shares up nearly 33.6% over the past year, the average price target of $148.30 indicates further upside potential of about 17% in the months ahead.

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