Myriad Genetics (MYGN) Earnings Report: What Will Nasdaq’s Most Shorted Stock Report? ROSG & DGX

The Q3 2014 earnings report for molecular diagnostic company Myriad Genetics, Inc (NASDAQ: MYGN) is due out after the market closes on Tuesday and things could get ugly since unlike potential diagnostic stock peers such as Rosetta Genomics Ltd (NASDAQ: ROSG) and mid cap diagnostic stock Quest Diagnostics Inc (NYSE: DGX), it's the most shorted stock on the Nasdaq with short interest of 52.07%. Aside from the Myriad Genetics earnings report, it should be said that Rosetta Genomics Ltd last reported earnings on March 31st and those earnings were for the full year 2013 while Quest Diagnostics reported Q1 2014 earnings on April 24th that were a disappointment due to restructuring costs and harsh winter weather. However, Myriad Genetics has been the more interesting stock as Medicare reimbursement rate increases and the lost of a court bid to block competition while a patent-infringement case is pending have sent its shares all over the place.

What Should You Watch Out for With the Myriad Genetics, Inc Earnings Report?

First, here is a quick recap of Myriad Genetics' recent earnings history:

Earnings HistoryMar 13Jun 13Sep 13Dec 13

EPS Est	0.40	0.44	0.46	0.46
EPS Actual	0.46	0.53	0.68	0.66
Difference	0.06	0.09	0.22	0.20
Surprise %	15.00%	20.50%	47.80%	43.50%

 

Early last February, Myriad Genetics reported fiscal second quarter posted strong earnings and updated its full-year 2014 guidance to levels above the analyst consensus. Even better, the company announced the acquisition of Crescendo Bioscience, a global leader in autoimmune diagnostics, for $270 million in cash. This time around and according to Yahoo! Finance analyst estimates page, the consensus expects revenues of $175.23 million and EPS of $0.045 - slightly higher than the $0.41 consensus EPS expected 90 days ago.

In the coming earnings release and subsequent earning call though, investors should pay close attention to any discussion about the updated pricing for the sequencing of BRCA1 and BRCA2 genes as the Centers for Medicare & Medicaid Services (CMS) recently raised the total reimbursement amount 37% from $2,021 to $2,767.

What do the Myriad Genetics, Inc Charts Say?

The latest technical chart for Myriad Genetics clearly shows the bullish March surge and later fall for the stock:

But over the longer term, Myriad Genetics and Quest Diagnostics are sort of flat while Rosetta Genomics has been a real loser:

And for reference, here are the latest technical charts for Rosetta Genomics and Quest Diagnostics:

What Should Be Your Next Move?

Clearly all of the short interest on Myriad Genetics is going to make this earnings report an interesting one as there is a strong chance for an outsized move in either direction. However, investors who aren't speculators though will want to stay on the sidelines to let the dust settle and they need to also remember that there still needs to be a trial in the patent infringment case.