Analysts Have Made A Financial Statement On Myriad Genetics, Inc.'s (NASDAQ:MYGN) First-Quarter Report

Myriad Genetics, Inc. (NASDAQ:MYGN) investors will be delighted, with the company turning in some strong numbers with its latest results. Myriad Genetics beat expectations with revenues of US$202m arriving 4.6% ahead of forecasts. The company also reported a statutory loss of US$0.29, 4.1% smaller than was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Myriad Genetics after the latest results.

See our latest analysis for Myriad Genetics

After the latest results, the eleven analysts covering Myriad Genetics are now predicting revenues of US$830.5m in 2024. If met, this would reflect a satisfactory 7.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.94. Before this latest report, the consensus had been expecting revenues of US$827.9m and US$0.93 per share in losses.

The consensus price target was unchanged at US$25.10, suggesting that the business - losses and all - is executing in line with estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Myriad Genetics analyst has a price target of US$35.00 per share, while the most pessimistic values it at US$17.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Myriad Genetics' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.8% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. So although Myriad Genetics' revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$25.10, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Myriad Genetics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Myriad Genetics going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Myriad Genetics that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.