Shares of Myriad Genetics (MYGN) are experiencing a steep pre-market plunge of 17.47% on Wednesday, as investors react to the company's disappointing first-quarter financial results and weak full-year outlook released the previous day. This sharp decline follows a 13.34% drop in the stock price during regular trading hours on Tuesday, indicating a compounding effect of negative sentiment surrounding the genetic testing company's financial health and future prospects.

Myriad Genetics reported a substantial operating loss of $29 million for Q1, with an adjusted operating loss of $5.5 million. Despite maintaining a gross margin of 69%, the company's high operating expenses, totaling $163.2 million ($140.6 million on an adjusted basis), significantly impacted its bottom line. Revenue for the quarter fell 3.1% to $195.90 million, falling short of analyst expectations of $200.56 million. These results have raised concerns among investors about the company's ability to manage costs and drive growth in the competitive genetic testing market.

Adding to the negative sentiment, Myriad Genetics provided a cautious outlook for fiscal year 2025, forecasting revenue in the range of $807 million to $823 million and adjusted earnings per share between a loss of $0.02 and a profit of $0.02. This guidance suggests ongoing financial challenges for the company and has further eroded investor confidence. The significant pre-market stock price drop reflects growing apprehension about Myriad Genetics' ability to achieve profitability and sustain growth in the near term, prompting many investors to reassess their positions in the company.