Investing.com -- Shares in Myriad Genetics Inc (NASDAQ:MYGN) plummeted more than 23% in after-hours trading after the Salt Lake City-based molecular diagnostics company lowered its forward guidance after missing analysts' forecasts with its fourth quarter results on Tuesday.
During Myriad's final quarter of Fiscal Year 2016, the company reported net profits of $23.4 million or earnings per share of 0.32, slightly above profits of $18.7 million or 0.26 for the same period in 2015. At the same time, Myriad saw its revenue slid 2% to $186.5 million as sales from its hereditary cancer testing division tumbled 7% for the quarter.
Analysts expected to see earnings per share of 0.37 on revenue of $188 million.
Last week, Myriad Genetics disclose that it acquired Mason, Ohio-based Assurex Health in a $410 million deal. The acquisition of the precision medicine testing company for Mental Health disorders represents Myriad's latest attempt to acquire smaller companies in an effort to grow its neuroscience division. Two years ago, the company added breast cancer testing company Sivion Diagnostics, as well as auto-immune testing company Crescendo Bioscience.
"Fourth-quarter performance met our expectations, and we continue to make substantial progress on advancing our product portfolio and growing Myriad into a larger, more diversified personalized medicine company," said Mark C. Capone, president and CEO of Myriad. "Myriad is on track to deliver on its five year strategic goals. We continue to be the worldwide leader in hereditary cancer testing, and our portfolio diversification efforts are accelerating with substantive volume growth and reimbursement for new commercial products, pivotal validations for our pipeline products, the acquisitions of Assurex Health and Sividon, and significant international expansion."
Moving forward, Myriad anticipates to finish with revenue of $740-$760 million for Fiscal Year 2017 on adjusted-earnings per share of 1.00-1.10. The forecasts are far below analysts' expectation of revenue of $791 million on earnings per share of 1.78.
Myriad Genetics' shares plunged 6.87 or 23.32% to 22.59 in after-hours.