Shares of NeoGenomics (NASDAQ: NEO) surged 5.06% in pre-market trading on Tuesday, following the company's fourth-quarter earnings release that topped profit estimates but fell short on revenue.
NeoGenomics reported quarterly earnings of $0.04 per share for Q4 2024, beating the consensus analyst estimate of $0.03 per share by 33.3%. However, quarterly sales of $172 million missed analysts' expectations of $173.18 million by 0.68%. The revenue figure still represented a 10.6% increase from the same period a year ago.
While the mixed results garnered a positive initial reaction from investors, analysts cautioned that the revenue miss could temper enthusiasm going forward. "The earnings beat is encouraging, but NeoGenomics will need to demonstrate stronger sales growth to sustain momentum in the stock," said one Wall Street analyst. "Overall, the Q4 numbers give reasons for both optimism and caution on the company's prospects."