NeoGenomics (NEO) Exceeds Q4 Earnings Estimates

NeoGenomics (NEO) reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share. In comparison, earnings for the same period last year stood at $0.03 per share. These numbers have been adjusted for non-recurring items.

This quarterly performance signifies an earnings surprise of 100%. Previously, analysts had predicted the cancer-focused testing laboratory operator would announce earnings of $0.01 per share, but the actual figure was $0.05, resulting in a remarkable surprise of 400% at that time.

Over the past year, NeoGenomics has consistently outperformed consensus EPS estimates, achieving this milestone four times.

Despite this achievement, the company reported revenues of $172 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 0.92%. This figure demonstrates an increase from year-ago revenues of $155.55 million. Furthermore, NeoGenomics has exceeded consensus revenue estimates three times in the last four quarters.

The future trajectory of the stock's price following these results will significantly hinge on management's insights during the upcoming earnings call.

Since the start of the year, shares of NeoGenomics have declined by approximately 12.5%, contrasting with the S&P 500's increase of 4%.

Future Prospects for NeoGenomics

While NeoGenomics has struggled relative to the market in 2024, investors are left pondering the stock's next moves.

Finding clear answers is challenging. However, the company's earnings outlook can provide valuable guidance. This includes not only the current consensus earnings expectations for the upcoming quarters but also the recent trends in these expectations.

Research indicates a strong link between short-term stock performance and earnings estimate revisions. Investors can either track these revisions independently or utilize a trusted rating tool, such as the Zacks Rank, which has a solid history of leveraging the impact of such revisions.

Before this recent earnings announcement, the revision trends for NeoGenomics appeared to be mixed. Although the outcome of estimate revisions may evolve following the latest earnings report, the current status gives NeoGenomics a Zacks Rank of 3 (Hold). This suggests that shares are anticipated to perform similarly to the market in the near future. A list of today's Zacks #1 Rank (Strong Buy) stocks is available for those interested.

In the days following this earnings release, it will be interesting to monitor how forecasts for the upcoming quarters and the current fiscal year adjust. The consensus EPS estimate for the next quarter stands at $0.03, accompanied by expected revenues of $173.67 million. For the entire fiscal year, the consensus EPS estimate is $0.20 with projected revenues of $738.49 million.

Moreover, investors should consider that the industry's overall outlook could significantly influence stock performance. Presently, the Medical - Biomedical and Genetics sector ranks in the upper 27% among over 250 Zacks industries. Research indicates that the top half of Zacks-ranked industries outperform the bottom half by more than double.

Another player in this industry, Spruce Biosciences, Inc. (SPRB), has yet to announce their results for the quarter ended December 2024.

They are expected to report a quarterly loss of $0.21 per share, reflecting an annual change of +8.7%. Meanwhile, the consensus EPS estimate for this quarter has remained stable for the past month, with anticipated revenues of $0.8 million—down 72.3% from the previous year.

NeoGenomics, Earnings, Stocks