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Tuesday, April 30, 2019

NeoGenomics slides despite better than expected quarterly results

After initially moving up following first quarter results, shares of NeoGenomics (NEO) have since moved into negative territory. The operator of cancer-focused testing laboratories reported better than expected earnings per share, while raising guidance for 2019. QUARTERLY RESULTS: NeoGenomics reported first quarter adjusted earnings per share of 7c, which was better than the expected 4c, and said consolidated revenues were $95.6M, an increase of 51% over the same period in 2018, and above the consensus estimate of $90.6M for the quarter. The company added that clinical test volume increased by 31% year over year, and average revenue per clinical test increased by 15% to $368 primarily due to the acquisition of Genoptix as well as the benefit of reimbursement initiatives. Also related to the Genoptix acquisition, consolidated operating expenses increased by $19.8M, or 80%, compared to the first quarter of 2018, according to the company. Consolidated gross profit improved by $19.8M, or 73%, compared to the first quarter of 2018, to $47.1M, while net loss in the quarter was $2.4M, reflecting an accrual related to Health Discovery Corporation litigation of $4.9M, net of tax. 2019. FINANCIAL OUTLOOK: NeoGenomics also raised its full year 2019 revenue guidance to $384M-$400M from $379M-$395M, and its adjusted EBITDA to $52-$56 from $49-$53. The consensus forecast for FY19 revenue is currently $385.1M. PRICE ACTION: In morning trading, shares of NeoGenomics have dropped 4% to $20.05.

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