NeoGenomics Q2 Earnings Helped By Higher Test Volume; Backs FY21 Guidance

NeoGenomics Inc NEO reported Q2 revenue of $122 million, +40% Y/Y, beating the consensus of $118.16 million.
Clinical Services revenue of $101 million increased 37% Y/Y and 5% sequentially. Excluding COVID-19 PCR testing, Clinical Services revenue was up 41% Y/Y and 7% Q/Q.
Clinical test volume increased by 37% Y/Y, with average revenue per clinical test up by 3% to $360.
Pharma Services revenue increased by 55% Y/Y to $20 million, primarily due to increased clinical trials and informatics revenue.
Adjusted gross margin improved from 32.2% to 44.1% due to the combined effect of higher test volume and recovery from the COVID-19 pandemic in both segments.
Adjusted EPS loss of $(0.01) better than $(0.04) posted a year ago, beating the consensus of $(0.06).
Adjusted EBITDA was $5 million compared to a negative $7 million in Q2 FY20.
Cash and cash equivalents, including restricted cash, were $373 million and short-term marketable securities were $203 million.
Days sales outstanding ("DSO") was 80 days at the end of the second quarter of 2021.
Outlook: NeoGenomics reiterated FY21 guidance, with sales of $490 million - $510 million, net loss of $(70) million - $(65) million and Adjusted EBITDA of $10 million - $15 million.
Price Action: NEO shares are trading lower by 3% at $46.28 on the last check Friday.

Momentum6.90

Growth11.45

QualityNot Available

Value18.36

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