News

What Happened?

Shares of oncology (cancer) diagnostics company NeoGenomics (NASDAQ:NEO) fell 34.8% in the afternoon session after the company reported disappointing first-quarter 2025 earnings as sales fell below Wall Street's expectations. Another blemish was that while full-year revenue guidance was raised, full-year EBITDA guidance was maintained, signaling that profit margins for the year would be lower than initially expected. On the other hand, NeoGenomics beat analysts' EPS expectations, and its full-year revenue guidance exceeded Wall Street's estimates. Overall, this quarter was mixed. The areas below expectations seemed to be driving the move.

The shares closed the day at $6.58, down 34.1% from previous close.

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What The Market Is Telling Us

NeoGenomics’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for NeoGenomics and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 21.5% on the news that the company reported weak fourth-quarter results, with revenue falling below Wall Street's expectations. Also, the result revealed minimal bottom-line improvement, as the business remained unprofitable. Further weighing on results, the company posted negative free cash flow for the quarter. On the other hand, guidance was more encouraging as full-year sales and EBITDA outlook were both ahead of consensus estimates. Overall, this was a challenging quarter.

NeoGenomics is down 60.3% since the beginning of the year, and at $6.55 per share, it is trading 64.8% below its 52-week high of $18.61 from January 2025. Investors who bought $1,000 worth of NeoGenomics’s shares 5 years ago would now be looking at an investment worth $211.15.

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