Myriad Genetics, Inc. (NASDAQ:MYGN) Just Reported Earnings, And Analysts Cut Their Target Price

Last week, you might have seen that Myriad Genetics, Inc. (NASDAQ:MYGN) released its quarterly result to the market. The early response was not positive, with shares down 8.2% to US$16.17 in the past week. Myriad Genetics reported revenues of US$213m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.24 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Myriad Genetics

After the latest results, the 14 analysts covering Myriad Genetics are now predicting revenues of US$893.8m in 2025. If met, this would reflect a meaningful 8.5% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 51% to US$0.63. Before this earnings announcement, the analysts had been modelling revenues of US$926.4m and losses of US$0.62 per share in 2025.

The average price target fell 15% to US$25.69, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Myriad Genetics at US$35.00 per share, while the most bearish prices it at US$15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Myriad Genetics' growth to accelerate, with the forecast 6.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Myriad Genetics is expected to grow meaningfully slower than the industry average.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Myriad Genetics going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for Myriad Genetics that you need to be mindful of.

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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.