Diagnostic imaging company RadNet (NASDAQ:RDNT) will be reporting results tomorrow after market hours. Here’s what to look for.

RadNet beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $461.1 million, up 14.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ same-store sales estimates and a decent beat of analysts’ EPS estimates.

Is RadNet a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting RadNet’s revenue to grow 9% year on year to $458.1 million, in line with the 9.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RadNet has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.3% on average.

Looking at RadNet’s peers in the testing & diagnostics services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 14.6%, beating analysts’ expectations by 1.8%, and NeoGenomics reported revenues up 10.6%, falling short of estimates by 1%. Quest traded up 5% following the results while NeoGenomics was down 12%.

Read our full analysis of Quest’s results here and NeoGenomics’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the testing & diagnostics services stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. RadNet is down 8.9% during the same time and is heading into earnings with an average analyst price target of $86.17 (compared to the current share price of $60.08).

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