NeoGenomics Raises Annual Guidance After Solid Q2 Earnings Beat

NeoGenomics, Inc. NEO reported Q2 revenues of $146.92 million, +18% Y/Y, beating the consensus of $137.42 million. Adjusted EPS came in at $(0.05), beating the $(0.11) consensus.

Clinical Services revenue of $123 million increased 17% Y/Y. Clinical test volume increased by 8%. The average revenue per clinical test increased by 8% to $417.

Advanced Diagnostics' revenue increased by 22% to $24 million.

Adjusted EBITDA loss was $(2) million compared to $(16) million in the second quarter of 2022. 

Consolidated gross profit for the second quarter was $59.9 million, an increase of 36.3% Y/Y. This increase was primarily due to the rise in revenue partially offset by higher payroll and payroll-related costs.

Adjusted gross profit margin, excluding amortization of acquired Inivata developed technology intangible assets, was 44.1%.

"Building on our focused initiatives we implemented in the second half of 2022, our strategic priorities continue to drive accelerated growth supported by improvements in execution. This strong positioning provides us with significant opportunity to carry our strength forward into the second half of 2023," commented Chris Smith, CEO.

Outlook: NeoGenomics raised FY23 revenues outlook to $565 million-$575 million versus the consensus of $562.42 million (prior view: $555 million-$565 million).

The company expects an adjusted EBITDA loss of $(13) million-$(10) million (prior view: $(22) million-$(18) million).

Price Action: NEO shares are down 2.88% at $15.35 on the last check Tuesday.