NEO Stock Price Chart
NEO Fundamental Analysis
NEO Earnings Analysis
Positive
Earnings Per Share Beat: NeoGenomics reported earnings per share (EPS) of $0.04, exceeding expectations of $0.03.
Consistent Revenue Growth: The company achieved double-digit revenue growth for nine consecutive quarters, with Q4 revenue reaching $172 million, an 11% increase year-over-year.
EBITDA Turnaround Success: Adjusted EBITDA improved significantly, reaching $40 million in 2024, a turnaround from a negative $48 million in 2022.
Clinical Testing Growth: Clinical testing volumes increased by 9% compared to the previous year, with a 5% increase in revenue per test.
Improved Gross Margins: Adjusted gross margins improved to 48%, the highest in five years, reflecting operational efficiencies and a shift to higher-value tests.
NGS Revenue Growth: Next Generation Sequencing (NGS) revenue grew by 24% in Q4 and 34% for the year, now representing over 30% of total revenue.
Patient Service Expansion: The company served nearly 700,000 patients in 2024, positioning itself to achieve the goal of serving 1 million patients annually by 2028.
Long-Range Financial Growth Target: NeoGenomics raised its long-range financial plan, targeting annual top-line growth of 12% to 13%, excluding revenue from minimal residual disease (MRD) testing.
Strategic Collaboration in Hematology: The company announced a multi-year exclusive strategic collaboration with Adaptive for MRD monitoring, enhancing its leadership in hematology testing.
Customer Satisfaction Improvement: The Net Promoter Score improved to 74 in 2024, indicating increased customer satisfaction and trust in the company's services.
Negative
Pharma Budget Shortfall: The company did not see the expected pharma budget flush with year-end projects in the fourth quarter, which impacted revenue.
Sales Performance Limitations: There were limitations in selling new RaDaR contracts due to a preliminary injunction and negotiated settlement, affecting sales performance.
Increased Sales and Marketing Expenses: Sales and marketing expenses increased by 24%, reflecting continued investment but also indicating higher operational costs.
Rising Administrative Expenses: General and administrative expenses rose to $63 million, driven by higher technology costs and increased compensation, which could indicate rising operational inefficiencies.
Liquidity Concerns Highlighted: Cash and marketable securities decreased by 7% versus the prior year, suggesting potential liquidity concerns despite positive cash flow from operations.
First Quarter Revenue Outlook: The company anticipates first quarter revenues to be about 23% of full year revenue, indicating a slower start to the year compared to previous expectations.
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Should I buy or sell NEO Stock?
NEO stock is currently trading near resistance levels with mixed analyst sentiment. Hold off on buying until a clearer trend emerges or the stock pulls back to support. Selling isn't urgent unless fundamentals change.
