Exact Sciences, Guardant Health Put Up Big Sales Beats As They Target The 'Most Preventable' Cancer

Exact Sciences' (EXAS), a company that specializes in the analysis of data, delivered a report for its first quarter that "checked off all the boxes," said an analyst as EXAS shares soared early on Wednesday.

Cologuard is a test that uses stools to detect colorectal carcinoma. Chief Medical Officer Paul Limburg claims that this form of cancer is "the most preventable but least prevented". According to FactSet, during the March quarter screening revenue grew by 45%, and exceeded expectations by $48.9million. Exact has carried this forward by increasing its sales guidance for the full year by at least $110 million.

Guardant Health, a competitor in colon cancer screening, announced its own sales record and the results of a recent study on its blood-based test for colon cancer. Guardant Shield's blood test is comparable to other non-invasive colon cancer tests in terms of early detection rates. This would include Exact Cologuard.

EXAS shares soared 11.2% in morning trading today on the stock market to 78.96. According to MarketSmith.com, this put the shares above a buying point of 72.29 after a consolidation. GH stock also soared 13.2% to 27,16, regaining its 50-day average.

EXAS Stock: Sales Rocket

Exact Sciences' sales grew by 24%, to 602 million dollars. This was well above the forecast of $543 million. Cologuard also reported a loss per share of 42 cents, down from $1.04 in the previous year. FactSet reports that analysts had predicted a larger loss of 74c per share.

Cologuard screens stools for polyps and colon cancer. The polyps are removed before they become cancerous. In an interview, Limburg stated that despite the fact that 44 million Americans are eligible for screenings, they are not up to date with current guidelines.

He said that this disease was called the "most preventable but least prevented cancer." "It's because people are still unaware that colorectal is a disease that can affect both men and women. Even if there are no symptoms, you could still be at high risk. And that there are many effective screening options available."

Exact also sells genetic tests from its PreventionGenetics division in addition to Cologuard. Precision oncology sales also grew 2%, to $155.4 millions. This segment sells Oncotype DX a test which determines whether chemotherapy is beneficial for patients with breast cancer.

11 Consecutive Sales Beats

Exact, like its peers, reported a significant decline in sales related to Covid. The revenue from Exact's Covid testing business fell 86%, to $3.8million.

Analysts' predictions for all three segments were exceeded. Analysts expected $394 million for screening sales, $146 millions from precision oncology and $3 million for Covid testing sales. Exact has exceeded sales and loss estimates in 11 consecutive periods.

Guardant Health, another competitor that uses blood tests to screen for colon carcinoma, had a similar strong first-quarter revenue, although losses were a penny higher than expected. Sales grew 34%, to $128.7 millions. This was above the $117.9-million forecast by analysts at GH.

However, the company lost $1.30 a share. This loss per share increased by 9 cents over the past year, and was just a little bit below expectations of a $1.29 loss per share.

Guardant Health, like Exact Sciences has raised its sales forecast and now expects to reach $535-$545 million this year. This is an increase of 19%-21%. The mid-point of the new guidance represents an increase of $7.5 millions.

According to IBD Digital, GH's stock has a Relative Strength rating of 15, which is a low score out of a maximum of 99. Guardant stock's performance is in the bottom 15 percent of all stocks for the last 12 months. EXAS, however, has a RS Rating that is in the top 4% for all stocks.