example#testFunction1 npm test will output

    /home/nam/projects/jest-babel-lodash-issue/src/example.js:3
    var testFunction1 = /* istanbul ignore next */exports.testFunction1 = ();
                                                                           ^
    
    SyntaxError: Unexpected token )

example#testFunction2 npm test will output

    ReferenceError: /home/nam/projects/jest-babel-lodash-issue/src/example.js: Container is falsy
      
      at NodePath._replaceWith (node_modules/babel-traverse/lib/path/replacement.js:170:11)

Removing collectCoverage from package.json lets the tests run without failure.