Myriad Genetics Earnings: Robust Testing Volumes Propel Revenue Growth, Provide Near-Term Momentum

We make no change to our $18.50 fair value estimate for no-moat Myriad Genetics, as third-quarter results landed largely as expected. Overall revenue growth of 14% year over year was driven by continued momentum in testing volume growth across the product portfolio, including strong volume growth year over year in hereditary cancer at 18%, pharmacogenomics at 19%, and prenatal (excluding contributions from Sneak Peak) at 20%. Solid revenue growth demonstrates healthy demand for the firm's core offering and led management to raise its full-year 2023 topline growth estimate to 10%-11%, up about 100 basis points at the midpoint. We made similar adjustments to our full-year revenue expectations, but with no material impact on our valuation. At current prices, Myriad's shares look about fairly valued.