(MYGN) Myriad Genetics – Revenue increased 53% from last year

January 14th, 2009

Myriad Genetics, Inc.’s (MYGN) share price continues to advance after the company reported a great quarter in early November. Analysts are bullish on the company, with the next-year estimate projecting 60% earnings growth.

Company Description

Myriad Genetics is a healthcare company that develops molecular diagnostic and therapeutic products. Its products include items to asses a persons risk for developing various forms of cancer. Myriad has a market cap of $3.15 billion.

First-Quarter Results

Myriad stepped up and reported impressive first-quarter results on Nov 4 that were ahead of analyst estimates. Revenue increased 53% from last year to $73.6 million.

Income surged higher, up to $14.5 million from a loss of $8 million last year. This produced earnings of 30 cents per share, more than double analyst estimates of 14 cents.

Myriad noted that its results were driven by growth in molecular diagnostic revenue, which jumped to $70 million from $46.1 million last year.

Strong Balance Sheet

Myriad is in the very favorable position of maintaining a strong balance sheet. As of September of 2008, the company reported having approximately $443 million in cash and cash equivalents. Myriad also has no debt.

Analyst Estimates

The next-year estimate is bullish, up to $2.26 per share, a 60% earnings growth projection. But with the current-year estimate pegged at $1.41, this is an expensive stock, carrying a forward P/E multiple of 30X, a steep premium to the overall market.

The Chart

Shares of MYGN have been rallying for most of the year, recently surging up to their 52-week and all-time high. Moving forward, this company will need to produce robust results to support more gains. Take a look at the chart below.

Content Courtesy: Zacks Investment Research

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More on this topic (What's this?)
Myriad Genetics (MYGN) - Monster Results (Fund my Mutual Fund, 2/3/09)
Myriad Genetics: Base Building Now … Big Gains in 2009? (The Iconoclast Investor, 12/30/08)
Myriad Genetics (MYGN) - Another Diagnostic Heavy Hitter (Fund my Mutual Fund, 1/20/09)
Myriad Genetics: One of my Favorite Genetic Stocks (The Iconoclast Investor, 12/1/08)
Read more on Myriad Genetics at Wikinvest

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