Myriad Genetics (MYGN) stock plummeted over 25% in pre-market trading on Tuesday, following the company's fourth-quarter 2024 earnings report and conference call. The decline was primarily driven by weaker-than-expected first-quarter 2025 guidance and concerns over the impact of UnitedHealthcare's decision not to cover the company's GeneSight pharmacogenomic test.
For the fourth quarter, Myriad Genetics reported adjusted earnings per share of $0.03, in line with analysts' expectations. Revenue of $210.6 million also narrowly missed the consensus estimate of $211.6 million. However, the company's guidance for the first quarter of 2025 significantly missed expectations, with an anticipated adjusted loss per share of $(0.04)-(0.08) compared to the consensus estimate of $(0.03).
Myriad Genetics maintained its full-year 2025 adjusted EPS guidance of $0.07-$0.11, in line with analysts' expectations. However, the weaker-than-expected first-quarter guidance and the potential impact of UnitedHealthcare's decision not to cover the company's GeneSight test weighed heavily on the stock. Analysts at UBS also cut their price target on the stock to $16 from $18, citing concerns over the UnitedHealthcare headwinds.
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