Exact Sciences Corporation EXAS reported earnings per share (EPS) of 22 cents in the second quarter of 2025 compared to the Zacks Consensus Estimate of a loss of 2 cents. The reported figure compares favorably with a loss of 9 cents in the same quarter last year. Consolidated revenues totaled $811.1 million, up 16% on a reported basis and 11% on a core revenue basis. The figure surpassed the Zacks Consensus Estimate by 4.78%. Following the Aug. 6 announcement, shares of EXAS fell 8% to close at $43.16 on the Aug. 7 session.\n\nScreening revenues, including laboratory service revenues from Cologuard tests and PreventionGenetics, increased 18% year over year to $811 million. Cologuard’s growth was driven by rescreens, care gap programs and improved commercial execution. Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $183 million, an increase of 9% from the year-ago quarter’s figure. This upside was propelled by the continued adoption of Oncotype DX internationally. The company also recognized $7.5 million in revenues from sublicensing TwinStrand's technology.\n\nExact Sciences’ gross profit rose 15.2% year over year to $562.5 million. However, the gross margin contracted 49 basis points (bps) to 69.4% on a 17.9% rise in the cost of revenues (excluding the amortization of acquired intangibles). Research and development expenses fell 10.1% year over year to $108.9 million. Sales and marketing expenses surged 16.8% to $247.1 million. General and administrative expenses increased 17.5% year over year to $209 million. Overall, the adjusted operating loss totaled $2.2 million compared with the year-ago operating loss of $21.9 million.\n\nExact Sciences exited the second quarter with cash, cash equivalents and marketable securities of $858.4 million compared with $786 at the end of the first quarter. Cumulative net cash provided by operating activities at the end of the second quarter was $89 million compared with $107.1 million in the year-ago period.\n\nFor full-year 2025, the company now anticipates total revenues between $3.130 and $3.170 billion (earlier $3.070-$3.120 billion). The Zacks Consensus Estimate is pegged at $3.15 billion. Among these, Screening revenues are expected in the range of $2.440-$2.470 billion (previously $2.390-$2.425 billion). Precision Oncology revenues are anticipated between $690 and $700 million (earlier $680-695 million). The adjusted EBITDA forecast has been updated to the $455-$475 million band from the earlier range of $425-$455 million.\n\nExact Sciences exited the second quarter of 2025 with better-than-expected earnings and revenues. A record 200,000 providers ordered Cologuard, with growth across all segments at record depth. The company also expanded its agreement with two of its top 10 payers to make Cologuard Plus in-network and entered an exclusive license with Freenome for a blood-based colorectal cancer screening test. It also advanced its pipeline by launching its molecular residual disease test, Oncodetect, and secured Medicare coverage. Additionally, Exact Sciences has launched a multiyear productivity plan to bolster its operational foundation and realize meaningful cost synergies. The company has reiterated its 2027 long-term target of 15% compounded revenue growth and more than 20% adjusted EBITDA margins. It expects to deliver more than $150 million in annual savings in 2026, with more than $50 million of these savings already factored into the company’s 2025 guidance, from actions taken during the first quarter. Meanwhile, the contraction of the gross margin in the quarter is discouraging.\n\nExact Sciences currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, GeneDx Holdings WGS and Boston Scientific BSX. Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here. MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%. GeneDx Holdings, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%. WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 231.40%. Boston Scientific, currently carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%. BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.11%.

EXAS Stock Dips Despite Q2 Earnings & Revenue Beat, '25 Sales View Up

Exact Sciences Corporation (EXAS) reported stronger-than-expected second-quarter 2025 earnings and revenue, with EPS of 22 cents versus a Zacks consensus estimate of a 2-cent loss, and consolidated revenues of $811.1 million, up 16% year-over-year. Screening revenues increased 18% to $811 million, driven by Cologuard rescreens and care gap programs, while Precision Oncology revenues rose 9% to $183 million due to international adoption of Oncotype DX. The company recognized $7.5 million in sublicensing revenue from TwinStrand's technology. Despite the revenue and earnings beat, shares fell 8% to $43.16 after the earnings announcement. The company updated its full-year 2025 revenue guidance to $3.130–$3.170 billion, with Screening revenues expected at $2.440–$2.470 billion and Precision Oncology at $690–$700 million. Adjusted EBITDA guidance was raised to $455–$475 million. EXAS also expanded payer agreements, launched a blood-based colorectal cancer test with Freenome, launched Oncodetect for molecular residual disease testing, secured Medicare coverage, and introduced a multiyear productivity plan to achieve $150 million in annual savings by 2026. The company reiterated its long-term targets of 15% compounded revenue growth and over 20% adjusted EBITDA margins. However, gross margin contracted to 69.4% due to rising costs of revenues. The stock currently holds a Zacks Rank #3 (Hold), with comparisons made to Medpace Holdings (Zacks Rank #1), GeneDx Holdings (Zacks Rank #2), and Boston Scientific (Zacks Rank #2).