UPDATE 1-Myriad Genetics shares up on strong Q4 results

Wed Aug 26, 2009 11:36am EDT

(Adds analyst comment, updates share movement)

Aug 26 (Reuters) - Shares of Myriad Genetics (MYGN.O) rose as much as 18 percent on Wednesday, a day after the company reported a strong fourth-quarter profit and said it was comfortable with current market estimates for fiscal 2010.

For 2010, analysts are expecting the company to earn $1.44 a share on revenue of $392.2 million, according to Reuters Estimates.

"The company has obviously taken more aggressive steps to penetrate the obstetrics and gynecology marketplace. Investors are gaining comfort that the company can meet those fiscal 2010 expectations," Canaccord Adams analyst Matthew Scalo told Reuters.

Scalo upgraded his rating on the company's stock to "buy" from "hold," and raised his share-price target to $35 from $33.

On Tuesday, the company reported quarterly income from continuing operations of $36.7 million, or 37 cents a share, compared with $21.5 million, or 23 cents a share, in the year-ago period.

During the fourth quarter, molecular diagnostic revenue rose 33 percent to $86.1 million from $64.7 million.

In a research note, RBC Capital Markets analyst Michael Yee said overall the company's long-term growth story is intact.

"We believe evidence of continued growth and execution are key to having a more bullish or confident outlook," Yee added.

Shares of Myriad Genetics were up $4.11 at $29.99 in late morning trade, and were one of the top percentage gainers on Nasdaq. They touched a high of $30.43 earlier in the session. (Reporting by Shailesh Kuber in Bangalore; Editing by Jarshad Kakkrakandy and Maju Samuel)

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