NEO Earnings Prediction
The chart below shows how NEO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NEO sees a -5.75% change in stock price 10 days leading up to the earnings, and a +10.73% change 10 days following the report. On the earnings day itself, the stock moves by +4.58%. This data can give you a slight idea of what to expect for the next quarter's release.
NEO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
167.82M
10.44%
2.02%
Gross Margin
44.62%
8.80%
1.25%
Operating Margin
-7.98%
-45.04%
-18.32%
Net Margin
-10.55%
-13.45%
-6.88%
EPS
-0.14
-6.67%
-6.67%
No Data Available
NEO Earnings Analysis
NeoGenomics, Inc. Corporation (NEO.O) Earnings Conference Call
Positive
Revenue and Testing Growth: In Q3, total revenues grew 10% year-over-year to $168 million, with clinical services revenue increasing 14% to $146 million, driven by a 9% increase in testing volume and a 5% increase in revenue per test.
Adjusted EBITDA Improvement: Adjusted EBITDA improved by $10 million or 305% from the prior year to positive $13 million, marking the fifth consecutive quarter of positive adjusted EBITDA.
NGS Testing Revenue Surge: NGS testing revenue grew 26%, representing 31% of total clinical volume and revenue, highlighting strong demand and adoption of larger test panels.
Strong Cash Position: The company ended Q3 with cash and marketable securities of $388 million, maintaining a strong cash position to support future growth and operational needs.
Gross Profit Improvement: Adjusted gross profit increased by 19% to $80 million, with adjusted gross margins improving by 355 basis points to 47.8%, reflecting operational efficiencies and a favorable product mix.
Negative
Advanced Diagnostics Revenue Decline: 1. Declining Advanced Diagnostics Revenue: Advanced Diagnostics revenue decreased by 10% year-over-year to $22 million, primarily due to international site closures and restructuring activities.
Rising General and Administrative Costs: 2. Increased G&A Expenses: General and administrative expenses rose by $5 million compared to the prior year, largely driven by higher legal and professional fees, including a settlement payment for IP litigation.
Convertible Notes Classification: 3. Convertible Notes as Current Liabilities: The May 2025 convertible notes with a principal balance of $201 million are now classified as current liabilities, indicating potential liquidity concerns as they approach maturity.
Hurricane Revenue Impact: 4. Impact of Hurricanes on Revenue: There was a noted slowness in revenue generation in October due to the impact of hurricanes in Florida and North Carolina, suggesting potential revenue loss in Q4.
Pharma Market Challenges: 5. Market Growth Slowdown: The company acknowledged a slowing of market growth in the pharma business, which has impacted performance in 2024, indicating challenges in maintaining revenue momentum.
NEO FAQs
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NEO Earning Call Sentiment
NeoGenomics, Inc. (NEO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NEO.O
0.18%Positive
The earnings call highlighted strong financial performance with a 10% revenue increase and improved margins. The company raised revenue and EBITDA guidance, indicating confidence in future growth. Despite some concerns about legal fees and international site closures, the Q&A session showed optimism about market opportunities and strategic investments. The lack of a shareholder return plan was offset by positive cash flow and liquidity for potential acquisitions. Overall, the sentiment is positive, supported by strong earnings, optimistic guidance, and strategic growth initiatives, likely leading to a 2% to 8% stock price increase.
