What Happened?
Shares of genetic testing company Myriad Genetics (NASDAQ: MYGN) fell 36% in the afternoon session after the company reported mixed first quarter 2025 results: it lowered its full-year revenue, EPS, and EBITDA guidance due to weaker trends in its pharmacogenomics and hereditary cancer testing (women's health) businesses. On the other hand, MYGN significantly beat analysts' EPS and EBITDA expectations. Overall, this was a softer quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Myriad Genetics? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Myriad Genetics’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Myriad Genetics and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 16.1% on the news that the company reported a tough quarter(Q4 2024), with revenue missing expectations and 2025 guidance for both revenue and EBITDA coming in light. While revenue did grow 7% compared to the previous year, thanks to strong gains in Pharmacogenomics (+14%y/y) and Prenatal testing (+12%y/y), it wasn't enough to make up for weakness in other areas, leading to the overall shortfall.
Despite the revenue miss, Myriad Genetics delivered a strong adjusted EBITDA, significantly outpacing analysts' expectations. The company benefited from improved gross margins, driven by higher revenue per test and operational efficiencies.
Looking ahead, the company provided 2025 revenue guidance of $850 million at the midpoint, which implies slower growth compared to 2024. Adjusted EBITDA guidance also fell short of expectations, raising concerns about profitability. Adding to the challenges, UnitedHealthcare's decision to cut coverage for certain multi-gene pharmacogenetic tests in 2025 poses a headwind for the GeneSight business.
On the leadership front, COO Sam Raha was expected to take over as CEO in April 2025, replacing Paul Diaz.
Overall, it wasn't a great quarter as revenue growth didn't meet expectations, guidance left investors uncertain, and upcoming reimbursement changes add further risk.
Myriad Genetics is down 67.1% since the beginning of the year, and at $4.44 per share, it is trading 84.5% below its 52-week high of $28.60 from September 2024. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at an investment worth $297.79.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
