Analysts have issued a financial statement on NeoGenomics, Inc.’s second quarter report (NASDAQ:NEO)


It’s been a great week for NeoGenomics, Inc. (NASDAQ:NEO), its shares having jumped 19% to US$11.88 in the week since its last quarterly results. It was a respectable set of results; while revenue of US$125 million was in line with analysts’ forecasts, statutory losses were 17% lower than expected, with NeoGenomics losing US$0.28 per share. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates if their view of the business has changed or if there are new concerns to consider. We’ve rounded up the most recent statutory forecasts to see if analysts have changed their earnings models as a result of these results.

NasdaqCM: NEO Earnings and Revenue Growth August 11, 2022

Following last week’s earnings report, NeoGenomics’ 13 analysts expect 2022 revenue to be $490.4 million, which is roughly in line with the past 12 months. Losses per share are expected to rise sharply to US$1.33. Prior to this latest report, consensus had expected revenue of $501.2 million and losses of $1.34 per share.

There was no real change from the average price target of $17.09, suggesting that revisions to earnings estimates should not have a long-term impact on NeoGenomics’ valuation. . It might also be instructive to look at the range of analysts’ estimates, to gauge how different the outlier opinions are from the mean. There are variations in perception on NeoGenomics, with the most bullish analyst pricing it at US$26.00 and the most bearish at US$12.00 per share. Notice the wide gap between analyst price targets? This implies to us that there is a fairly wide range of possible scenarios for the underlying activity.

Looking now at the big picture, one way to understand these forecasts is to see how they compare to past performance and industry growth estimates. We emphasize that NeoGenomics revenue growth is expected to slow, with the projected annualized growth rate of 0.4% through the end of 2022 being well below the historic growth of 17% per year over the past five years. By comparison, other companies in this industry covered by analysts are expected to grow revenue by 6.9% annually. So it’s pretty clear that while revenue growth is expected to slow, the broader industry is also expected to grow faster than NeoGenomics.

The essential

The most important thing to remember is that analysts have reconfirmed their loss per share estimates for next year. On the negative side, they have also lowered their revenue estimates, and the forecast implies that revenue will underperform the overall industry. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.

That said, the company’s long-term earnings trajectory is much more important than next year. We have forecasts for NeoGenomics until 2024, and you can see them for free on our platform here.

However, you should always think about the risks. Concrete example, we spotted 2 warning signs for NeoGenomics you should be aware.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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