EXAS Stock Up on Q1 Earnings & Revenue Beat, 2025 Sales View Raised

Exact Sciences Corporation EXAS reported a net loss of 21 cents in the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 37 cents. The reported figure compares with a loss of 50 cents in the same quarter last year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

EXAS Q1 Revenues

Consolidated revenues totaled $706.8 million, up 10.9% on a reported basis and 11% on a core revenue basis. The figure surpassed the Zacks Consensus Estimate by 2.5%.

Following the announcement, EXAS shares increased 8.1% in after-hours trading yesterday.

Detailed Breakup of EXAS’ Q1 Revenues

Screening revenues, including laboratory service revenues from Cologuard tests and PreventionGenetics, increased 14% year over year to $540 million due to the ongoing Cologuard momentum.

Exact Sciences Corporation Price, Consensus and EPS Surprise

Exact Sciences Corporation price-consensus-eps-surprise-chart | Exact Sciences Corporation Quote

Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $167 million, an increase of 2% from the year-ago quarter’s figure. This upside was propelled by the continued adoption of Oncotype DX internationally.

EXAS’ Q1 Margin Performance

Exact Sciences’ gross profit rose 12.2% year over year to $500.5 million despite a 7.9% rise in the cost of revenues (excluding the amortization of acquired intangibles). The gross margin expanded 81 basis points (bps) to 70.8%.

Research and development expenses fell 5% year over year to $105.3 million. Sales and marketing expenses surged 21.4% to $264.3 million. General and administrative expenses edged up 0.5% year over year to $221 million.

Overall, the adjusted operating loss totaled $89.8 million compared with the year-ago operating loss of $102 million.

EXAS’ Financial Update

Exact Sciences exited the first quarter with cash and cash equivalents and marketable securities of $786 million compared with $1.04 billion at the end of the fourth quarter of 2024.

Exact Sciences’ 2025 Outlook

For full-year 2025, the company now anticipates total revenues in the range of $3.070-$3.120 billion (previously $3.025-$3.085 billion). The Zacks Consensus Estimate is pegged at $3.05 billion.

Among these, Screening revenues are expected in the range of $2.390-$2.425 billion (previously $2.350-$2.390 billion). Precision Oncology revenues are expected between $680 and $695 million (earlier $675-$695 million).

The adjusted EBITDA forecast is updated to the $425-$455 million band from the earlier range of $410-$440 million.

Our Take on EXAS

Exact Sciences exited the first quarter of 2025 with a narrower-than-expected loss and revenue beat. The results also came in above the company’s expectations amid one of the challenging flu seasons in recent years. Cologuard’s broad-based growth was led by continued success in rescreens, care gap programs and growth in new ordering providers. Exact Sciences launched its next-generation colon cancer screening test, Cologuard Plus, with Medicare coverage and quality measure inclusion, further enhancing its screening capabilities.

Additionally, year-over-year gross margin expansion and a reduced adjusted operating loss are highly encouraging. The raised revenue and adjusted EBITDA guidance for the full year also bodes well. 

EXAS’ Zacks Rank and Key Picks

Exact Sciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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