What Happened?

Shares of genetic testing company Myriad Genetics (NASDAQ: MYGN) fell 19.3% in the morning session after it reported mixed third-quarter results that were overshadowed by a weak earnings outlook. 

The company's revenue of $205.7 million declined 3.6% year-over-year but met analyst expectations. Similarly, its adjusted earnings per share of $0 was down from $0.06 in the prior year's quarter but came in $0.01 ahead of consensus estimates. Despite these beats and a reaffirmation of its full-year revenue forecast, investors appeared to focus on the negatives. According to its earnings release, the company’s full-year earnings per share guidance missed Wall Street's expectations, signaling potential pressure on future profitability and likely driving the stock's sharp decline.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Myriad Genetics? Access our full analysis report here.

What Is The Market Telling Us

Myriad Genetics’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. But moves this big are rare even for Myriad Genetics and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 25 days ago when the stock dropped 3.7% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.

Myriad Genetics is down 50.9% since the beginning of the year, and at $6.63 per share, it is trading 62.8% below its 52-week high of $17.83 from November 2024. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at an investment worth $470.53.

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