Myriad Genetics Surges 45% on Earnings Beat—What’s Next for the Biotech Giant?

Summary
• Myriad Genetics (MYGN) surges 45.48% intraday, trading at $5.63 after reporting Q2 revenue of $213.1M, exceeding estimates by $11.1M.
• Adjusted EPS of $0.05 beats expectations by 724%, driven by 9% growth in hereditary cancer testing.
• Company raises 2025 revenue guidance to $818–$828M and secures a $200M credit facility.

Myriad Genetics’ stock has erupted on a historic earnings beat, defying its sector’s recent struggles. The genetic testing firm’s Q2 results—marked by revenue growth, margin expansion, and strategic financing—have ignited a sharp rally. With the stock trading near its 52-week high of $29.30, investors are scrambling to assess whether this surge is a breakout or a fleeting rebound.

Earnings Beat and Guidance Hike Fuel MYGN's Surge
Myriad Genetics’ 45.48% intraday jump stems from a combination of outperforming Q2 results and strategic optimism. The company reported revenue of $213.1 million, surpassing estimates by $11.1 million, with hereditary cancer testing revenue growing 9% year-over-year. Adjusted EPS of $0.05—versus a predicted loss—highlighted improved profitability, driven by gross margin expansion to 71.2%. Additionally, the $200 million credit facility and raised 2025 revenue guidance to $818–$828 million signaled management’s confidence in sustaining momentum. These factors collectively triggered a re-rating of the stock, as investors recalibrated expectations for the firm’s oncology diagnostics business.

Diagnostics & Research Sector Mixed as MYGN Defies Trend
While Myriad Genetics surged, the broader Diagnostics & Research sector faced headwinds. Sector leader Thermo Fisher (TMO) fell 4.06%, reflecting broader market concerns over healthcare sector volatility. Recent weakness in competitors like NeoGenomics and UnitedHealth Group’s earnings miss had cast a shadow over the sector. However, MYGN’s earnings beat and guidance revision positioned it as a standout performer, leveraging its focus on hereditary cancer testing and strategic debt financing to differentiate from peers.

Options and ETF Plays for MYGN’s Volatile Rebound
• MACD: -0.3375 (bearish divergence), RSI: 20.98 (oversold), Bollinger Bands: 5.74 (upper), 4.61 (middle), 3.48 (lower)
• 200D MA: $10.54 (far above), 30D MA: $4.86 (below current price)
• Support/Resistance: 30D: $5.31–$5.34, 200D: $3.84–$4.24

MYGN’s technicals suggest a short-term rebound from oversold levels, but long-term bearish trends persist. Key levels to watch include the 200D MA ($10.54) as a distant resistance and the 30D support ($5.31). The stock’s volatility—reflected in 118.66% implied volatility for the August 15 $6 call—offers high-risk, high-reward options plays.

Top Option 1: MYGN20250815C6
• Strike: $6, Expiration: 2025-08-15, IV: 118.66%, Leverage: 18.80%, Delta: 0.416, Theta: -0.030, Gamma: 0.352, Turnover: $72,808
• IV (high volatility) suggests strong price swings; Leverage amplifies gains if the stock breaks $6; Gamma (0.352) indicates sensitivity to price movement. This call is ideal for aggressive bulls expecting a continuation of the rally.
Payoff: At a 5% upside (target: $5.91), the intrinsic value is $5.91 - $6 = -$0.09 (out of the money). However, the high gamma and leverage could amplify gains if the stock surges past $6.

Top Option 2: MYGN20250919C6
• Strike: $6, Expiration: 2025-09-19, IV: 74.04%, Leverage: 12.53%, Delta: 0.465, Theta: -0.0085, Gamma: 0.271, Turnover: $6,194
• IV (moderate) balances risk and reward; Leverage (12.53%) offers controlled exposure. This call is suited for a mid-term bullish stance, capitalizing on potential follow-through buying.
Payoff: At $5.91, intrinsic value is -$0.09, but the lower theta (-0.0085) reduces time decay risk compared to the August contract.

Action: Aggressive bulls may consider MYGN20250815C6 for a short-term breakout play, while MYGN20250919C6 offers a safer, mid-term bet if the stock consolidates above $5.31.

Backtest Myriad Genetics Stock Performance
The 45% intraday surge in MYGN's stock price has historically led to mixed short-to-medium-term performance. While the 3-day win rate is 48.06%, indicating a higher probability of positive returns in the immediate term, the longer-term performance is lackluster, with the 10-day and 30-day win rates at 48.74% and 44.86%, respectively. This suggests that while the stock may experience a brief bounce following a significant intraday increase, it is likely to consolidate or even fall slightly in the following days.

MYGN’s Rebound: A Breakout or a Flash in the Pan?
Myriad Genetics’ 45% surge is a rare but significant move, driven by a rare combination of earnings outperformance and strategic optimism. However, the stock remains 80% below its 52-week high and faces long-term bearish technicals. Investors should monitor the 200D MA ($10.54) as a critical resistance and the 30D support ($5.31) for a potential bounce. Meanwhile, the sector’s mixed performance—led by TMO’s 4.06% decline—highlights broader healthcare sector fragility. For now, MYGN’s rally appears to be a short-term re-rating, but sustained momentum will require a breakout above $6. Watch for a follow-through move or a breakdown below $5.31 to determine the next phase.