What Happened?

Shares of genetic testing company Myriad Genetics (NASDAQ:MYGN) fell 16.1% in the morning session after 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, there's a big change coming as COO Sam Raha will take over as CEO in April 2025, replacing Paul Diaz. 

Overall, it wasn't a great quarter as revenue growth didn't meet expectations, and guidance left investors uncertain.

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 quite volatile and have had 17 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.

Myriad Genetics is down 11.7% since the beginning of the year, and at $11.93 per share, it is trading 58.3% 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 $662.87.

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