Exact Sciences (NASDAQ: EXAS) making waves early in the trading day on May 31st with gains upwards of 10%. News of their product Cologuard, their colon cancer test, being implemented in United Health Group (NYSE:UNH) may have been the trigger in this price upswing, as previously United Health Group did not want to purchase nor utilize Cologuard.
Analyst, Mark Massaro of Canaccord Genuity stated why this news may have move Exact Sciences prices, “We estimate that UNH will add about 30M (or so) covered lives for Cologuard, taking the total number of lives covering Cologuard to approximately 227M…We raise our PT from $38 to $40, which uses a 7.9x multiple on our 2021 revenue estimate of $800 Million, discounted back four years at a 10% discount rate. EXAS remain one of our top 5 picks of 2017.”
Quarter after Quarter, earnings have been higher than analyst estimates for the past year. As far as growth, year to date (YTD), Exact Sciences Corp has increased over 171.33%. 14 Analysts believe that Q2 Earnings will average revenue estimate of 49.69M and a high estimate of 52.87M as well as a low estimate of 47.1M. The current quarter (Q2) ending in June 2017 will have earnings scheduled to be released on Jul 26, 2017.