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NeoGenomics Inc

NeoGenomics Inc (NEO)

13.08
-0.09
(-0.68%)
At close: June 25 4:00PM
13.08
-0.01
( -0.08% )
After Hours: 4:25PM

Calls

StrikeBid PriceAsk PriceLast PriceMidpointChangeChange %VolumeOPEN INTLast Trade
2.509.3011.900.0010.600.000.00 %00-
5.000.000.000.000.000.000.00 %00-
7.500.000.000.000.000.000.00 %00-
10.002.654.406.103.5250.000.00 %012-
12.500.851.000.850.925-0.10-10.53 %1746615:35:50
15.000.000.000.000.000.000.00 %00-
17.500.000.000.000.000.000.00 %00-
20.000.000.000.000.000.000.00 %00-
22.500.050.750.050.400.000.00 %08-
25.000.250.150.250.200.000.00 %0108-
30.000.000.000.000.000.000.00 %00-

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Puts

StrikeBid PriceAsk PriceLast PriceMidpointChangeChange %VolumeOPEN INTLast Trade
2.500.000.000.000.000.000.00 %00-
5.000.000.000.000.000.000.00 %00-
7.500.000.000.000.000.000.00 %00-
10.000.000.000.000.000.000.00 %00-
12.500.000.000.000.000.000.00 %00-
15.001.002.101.301.550.000.00 %0186-
17.500.000.000.000.000.000.00 %00-
20.006.508.806.107.650.000.00 %00-
22.507.4011.406.809.400.000.00 %0217-
25.0011.5012.609.7812.050.000.00 %00-
30.0016.5019.000.0017.750.000.00 %00-

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NEO Discussion

View Posts
rusty8350 rusty8350 8 months ago
News here or this thing just swinging back up in anticipation of earnings?
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rusty8350 rusty8350 1 year ago
New CEO means business. Cost cutting measures are occurring and theyโ€™re going to be back to a profit this year. He was CEO of OrthoClinicalDiagnostics before they sold to Quidel. A lot of speculation he rights the ship here and seeks buyouts. Possibility for major return on investment.
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rusty8350 rusty8350 2 years ago
Well, interim CEO is doing her best to cut costs. Hopefully they can increase revenue too. Maybe hire a bulldog ceo who has experience in this market.
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conix conix 2 years ago
NeoGenomics (NASDAQ:NEO) was downgraded by analysts at Stephens from an "overweight" rating to an "equal weight" rating. They now have a $16.00 price target on the stock, down previously from $34.00.This represents a 37.5% upside from the current price of $11.64.
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Armed n Hammered Armed n Hammered 3 years ago
Just a matter of time DR. Dentโ€™s new Vision with his Dream team will take HLYK to the moon like NEO !!!
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headsortails2066 headsortails2066 5 years ago
Dr Dent from NEO now building another company that will eventually be a NASDAQ company.

Join me over at HLYK.
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Armed n Hammered Armed n Hammered 6 years ago
Looks like DR. Maher Albitar from NEO is heading over to HLYK ! Just Stating the facts this will be HUGE !
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Armed n Hammered Armed n Hammered 6 years ago
The old CEO of NEO Michal Dent who brought this Company from .08 to 18.00 Has a new company Called HLYK Healthlynked Corp and its a gold mine !!!!!!!
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apljack apljack 6 years ago
Updates of business developments.

Been rather quiet here, I doubt that NEO has garnered the attention it deserves but I also suspect that people will start to sit up and take notice as the business news starts to hit the street when the upside of new developments becomes clear. Here are some important milestone:

1. NEO inked a deal with PPD for strategic partnership:
Pharmaceutical Product Development, LLC (PPD), a leading global contract research organization (CRO), and NeoGenomics Laboratories, Inc., a leading provider of cancer-focused genetic testing services, are forming a strategic alliance to provide a seamless and fully integrated global pathology and molecular testing solution to PPDโ€™s pharmaceutical and biotech clients.

As part of the collaboration, NeoGenomics will provide a wide range of lab testing services to support PPD® Laboratoriesโ€™ oncology clinical trial activities in the U.S., Europe and Asia. Operationally, the collaboration will leverage NeoGenomics sites in the U.S. and Europe, and both companies expect to jointly invest in PPDโ€™s existing labs in China and Singapore. The companies will provide an integrated global IT solution, leveraging PPDโ€™s award-winning Preclarus® system to offer real-time visibility and analytics for informed decision-making.

Fully integrated with PPDโ€™s CRO capabilities, PPD Laboratories offers the industryโ€™s most comprehensive set of lab services, spanning bioanalytical, biomarkers, central lab, GMP and vaccine sciences. NeoGenomics provides one of the most comprehensive oncology-focused testing menus in the world to support physicians in the diagnosis and treatment of cancer and pharmaceutical clients in clinical trials and drug development.

The new collaboration focuses on centralized pathology review, as well as specialty lab services, including flow cytometry, fluorescence in situ hybridization (FISH), immunohistochemistry (IHC), cytogenetics, molecular assays, next-generation sequencing and MultiOmyxโ„ข, NeoGenomicsโ€™ proprietary, multi-omics multiplexing methodology.

Together, the companies also will provide clients a comprehensive companion diagnostics offering from biomarker discovery through regulatory approval and commercialization. Additionally, the teams are committed to leveraging their combined data assets to find more efficient methods of identifying appropriate patients for oncology trials.

PPD is a privately owned company so their finances are opaque, but consider they are global, wholly a CRO/drug development company with a considerable presence in both China and India, and have 20,000 employees, this deal could be huge. Read the details here:

https://finance.yahoo.com/news/ppd-neogenomics-forming-global-strategic-120000105.html

2. NeoGenomics Redeems 100% of Series A Redeemable Preferred Stock
NeoGenomics, Inc. (NEO) (the โ€œCompanyโ€), a leading provider of cancer-focused genetic testing services, announced today that it redeemed 6,864,000 million shares of Series A Redeemable Preferred Stock (โ€œSeries A Preferred Stockโ€) held by an affiliate of General Electric Company for approximately $50.1 million. The shares were redeemed at approximately $7.30 per share, reflecting $7.16 per share, which is the applicable 4.5% redemption discount to the original liquidation preference, plus an additional $0.14 per share in respect of accrued and unpaid dividends for 2018. The Company has now redeemed 100% of the Series A Preferred Stock outstanding.

This has an obvious impact on share value as it reduces the outstanding share from about 80 million to about 66 million. At recent market cap value, this would put share value at about $16.67/share. The market doesn't always catch up (and may have already priced this reduction in) but I'm confident that there will be an upside to this move. Reading between the lines, the company executed this because their finances were strong enough to manage it and forward-looking anticipation of business is good.

Next quarter's CC will be exciting to here. Business is growing in a big way in the sector (CRO) that has the biggest margins.
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trendmkr trendmkr 7 years ago
NEOGENOMICS, INC. (NASDAQ:NEO) Files An 8-K Results of Operations and Financial Condition https://marketexclusive.com/neogenomics-inc-nasdaqneo-files-an-8-k-results-of-operations-and-financial-condition-2/74994/?icd1
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ValueInvestor15 ValueInvestor15 7 years ago
These Neogenomics $NEO valuation models show 8% upside b4 earnings Wednesday:

Intrinsic Value Source
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apljack apljack 7 years ago
Two new pieces of news
1. As you are all probably now aware, NEO closed on a new credit facility, increasing revolving credit, retiring an old loan, establishing a new loan and retiring 8.6 million in preferred stock issued to GE as part of the purchase of Clarient. This reduces the official share count be the 8.6 million shares (GE still has another 6.6 million shares that could also be retired).

In what looks like a response to this move, Cantor Fitzgerald initiated coverage of NEO yesterday (12/26/16) with a "buy" rating and a price target of $11. This target is just about what one would expect to see to bring the market cap back to the value we had prior to the issue retirement.

https://www.marketbeat.com/stocks/NASDAQ/NEO/?RegistrationCode=SocialMedia-Twitter
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apljack apljack 8 years ago
Can't say that I have any ideas. The quarter is in the books, the co. has been air tight in announcing both upside and downside surprises, with nothing this quarter. Only speculation, but there may be short-term investors who were expecting an upside surprise announcement and/or more momentum play as we move into the CC. I'm expecting in-line to modestly better than expected numbers, but we will all have to wait and see.
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Red011 Red011 8 years ago
aj,

Surprised to see the recent drop below $8. Didn't notice the volume. Any ideas on why.


Red
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apljack apljack 8 years ago
Short Interest is up for NEO, according to the following website:

http://www.thecerbatgem.com/2016/10/01/neogenomics-inc-neo-short-interest-up-59-9-in-september.html

I don't check Google Finance very often, but the site has a link to Cerbat Gem, which posted that the short interest is up as of mid Sept to 10.2% of shares. The site also summarizes the number of inst. investors who have added to their position. If we have a positive quarter, I suspect that there will be something of a short squeeze to cover.
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dollardaze dollardaze 8 years ago
NEO Institutional Ownership Now At 79.21%
General Electric Co. acquired a new stake in NeoGenomics during the fourth quarter valued at approximately $118,050,000.
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bbro37 bbro37 8 years ago
Thanks very much for your input, Apljack. I've been in NEO from $.75 and I've pretty much sold everything else over the years to buy more.
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apljack apljack 8 years ago
Q2 CC
I took the opportunity to listen to the entire CC this afternoon. Mgmt. reported that integration of the legacy NEO business and Clarient continues to move along, but at a pace that I found slower than expected. The biggest task appears to be migrating the Clarient customer base onto the NEO LIS system, which will not be completed until mid 3rd quarter (I recall August being the estimate). Until then, mgmt. admits that the sales force is "distracted" by teaching Clarient customers use of the NEO LIS, detracting from their core duties of finding new customers. That said, NEO continued to grow their legacy business by 32% and margins (ex-Clarient) improved 40 basis points. Other positive news was an improvement in Biopharma business contracts and letters of intent, as well as a statement that some of the biopharma customers want NEO to be able to provide this segment of their business outside of the US (which mgmt stated was in their plans.) I was surprised, to some degree about statements regarding the number of Med Centers/Med schools who are now customers. These are big customers and generate lots of revenue. I had opined elsewhere that more and more hospitals will capitalize on NEO's tech only services as this relieves the hospitals of capital expenditures (for expensive equipment and manpower) while still allowing them to charge for services.

Consolidation of the Mission Viejo and Irvine labs also continue to occur, again with a slow steady pace. Mgmt sees significant cost savings based upon work efficiency improvements and supply chain cost savings. The proposed OPPS from CMS was stated to be a positive (versus the reduction in CMS reimbursement in Flow Cytometry reimbursement, which was substantial percent wise but small in the mix of revenue).

Lastly, a comment regarding conversion of preferred shares was made, with no specific timeline regarding conversion, but mgmt noting that they are sensitive to timing regarding this and will execute when they think they can manage it. They closed by reminding all that conversion will reduce overall shares available, which will have a positive impact on financial metrics.

Looking forward, I can see several potential developments that will be positive. First would be any announcement of a biopharma contract big enough to have material impact. This would likely come in the form of a multi-study or pharma-level contract that would include ALL of the work for that pharma. Any news of the opening of a European or Asian lab for biopharma work would also be material (biopharma revenue was stated to be about 20% of business if memory serves, but I was not taking notes) because biopharma work revenue is much higher margin than clinical work.

We beat by $2 million despite ongoing "distractions" on strong growth of tests numbers and growth of margins. When the dust integration settles but Q4, we may see outstanding revenue growth. Wild card? A new Federal administration that finds a way to terminate the sequester and focuses on "the moon-shot" of beating cancer, with better reimbursement for our business.

I invite all to review the CC and comment here.

http://seekingalpha.com/article/3991754-neogenomics-neo-ceo-douglas-vanoort-q2-2016-results-earnings-call-transcript
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apljack apljack 8 years ago
2nd Quarter Earnings
Looks pretty good, Reuters is reporting revenue of $63.1 million, $2 million above estimates, just like I predicted. Adjusted revenue of 4 cents/share is 1 cent better than estimates.

* Neogenomics reports 159% revenue growth to $63.1 million and strong gains in profitability in the second quarter of 2016

* Q2 adjusted earnings per share $0.04

* Q2 loss per share $0.07

* Q2 revenue $63.1 million versus i/b/e/s view $61.1 million

* Q2 earnings per share view $0.03 -- Thomson Reuters I/B/E/S

Time will tell how the street views the results. Looking forward to the CC.

GLTA
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apljack apljack 8 years ago
2nd quarter Report and CC

We are one week away from the news on 2nd quarter financials. I will go out on a limb and predict that we beat expectations (despite analysts' increased predictions) by $2-3 million, with an earnings beat of 2-4 cents/share. I expect to hear that the premiere deal is gaining traction and that integration activities have continued to be smooth and with the surprise that back-billing has been more successful than expected. Look for any news of new CRO deals/contracts as an added bonus.
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apljack apljack 8 years ago
NEO and the 2017 CMS OPPS rate change proposals

If you haven't read this elsewhere, CMS has proposed to increase the Outpatient Prospective Payment Service (OPPS) 1.55% for 2017. If we see a change in congress and with it, an end to the sequester, the rate would increase another 0.75%. Both of these should go directly to our bottom line.

"CMS proposes to update OPPS rates by 1.55 percent. The change is based on the projected hospital market basket increase of 2.8 percent minus both a 0.5 percentage point adjustment for multi-factor productivity (MFP) and a 0.75 percentage point adjustment required by law."

https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2016-Fact-sheets-items/2016-07-06.html
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apljack apljack 8 years ago
NEO at TheTechTrader site

Thanks for posting this, I like hearing technical analyses as I know less than most about technicals. Curious that the commentator covered several gold mining co.'s as well. I own MUX, which has also done quite well and has broken out of a strict POG pattern.

This morning brings news from "The Street" blog that suggests locking profits in when technicals bring you to a new high. As far as I'm concerned, this is a big buy/hold indicator as smart money is trying to grab up shares on strong performing stocks.

http://realmoney.thestreet.com/articles/07/13/2016/lock-down-gains-big-winners?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
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DADOFTHREE DADOFTHREE 8 years ago
hey moved here from the yho board as well, I haven't been in the stock quite as long as you but hold positions from 1.14 so it has been an unbelievable ride. The best part is that all my shares were bought from profits made from the sale of clarient when I cashed out as they were going to sell to GE. Back in the days when they were "owned by Safeguard Scientifics".

Nice to see you on here. I hope management continues to make great runs.
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apljack apljack 8 years ago
New analyst comments are out.

Noted in a Seeking Alpha Biotech blog from 7/8/16 is the following "Small-cap cancer diagnostics firm NeoGenomics (NASDAQ:NEO) also getting a nice shout out from the analyst community this morning. Both BTIG and Craig-Hallum are reiterated Buy ratings with $10 and $12 price targets, respectfully. This is the first analyst commentary I can find on NEO in 2016. The company was last profiled here on Seeking Alpha in late April."
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apljack apljack 8 years ago
NEO and the run up to the 7/26 CC

I am a long-term holder who has been invested here since 2008 and usually post on YMB. The recent change(s) from Yahoo make it difficult to carry on the usual conversations, so I intend to post here from now on.

Technicals for NEO have been excellent of late. We have had a recent double bottom near $7.75 and strong rebound, forming a classic "W" pattern. Today's move has been strong on strong volume. Nearing a new breakout for $11-12/share range.

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enthalpy enthalpy 8 years ago
I remember in 2003 looking at this low float stick at 10 cents. Then it ran to $1.10 fast. I was debating picking up 50k shares. One of the stocks that got away from me! Stock symbol NGNM. Then they up listed to AMEX.
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bidmark bidmark 8 years ago
Good work NEO! Keep it going.
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thetechtrader thetechtrader 9 years ago
Harry Boxer's Charts of the Day (TheTechTrader.com): Neogenomics Inc. (NEO) is acting great. On Tuesday it was in a very tiny range, with very little volume as price narrows in a rising wedge. A break through the topsline of the wedge near 8 1/2 should lead to a move towards the channel top near 9 1/2.
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magness magness 9 years ago
Their reg business is pretty meh, they paid a lot for GE's unit. Can't decide if they completely screwed up their balance sheet. Neutral
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dayneyus dayneyus 9 years ago
CBOE has already made available $10 Puts and Calls, Nov 15 & Feb 16, because the stock is expected to perform near that area. They are expected to began blowing out earnings into next year especially after launching their NEO Lab genetic test and the up coming Prostate Liquid Biopsy. The best play here is front month near the money calls if you like risk, in the money 2016 if you don't. Half my NEO position is in options because they give you a better bang for your buck its been working so far.
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dayneyus dayneyus 9 years ago
An associated stock HDVY is on a tear because NEO is expected to release news about NeoLab Prostate liquid biopsy which is a game changer for prostate health
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Quokkie Quokkie 9 years ago
Such uptrend may continue before Rsi resets
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investorsito investorsito 9 years ago
Overbought territory. Hope you take your profits. Pull back will be swift. Chart for NEO shows when RSI (14) goes over 70 strong down pattern follows. Over 30% up for the week. If you don't believe people are going to take profits....well. Remember don't fall in love with a stock my friend...you can always buy back in after the reset...Gravity is a beautiful thing...GLTY
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Quokkie Quokkie 9 years ago
High vol
Showing no signs of letting off
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investorsito investorsito 9 years ago
By the way RSI 14 already went over 70...I'd take my profits and stop worrying about leaving money on the table...the pull back is going to be swift with this volume....doubled down @6.84 lol
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investorsito investorsito 9 years ago
Pumpers always claim the PPS will keep going up...to da moon!!! Lmao!!!never fall in love with friend...
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Quokkie Quokkie 9 years ago
Pile in guys for unlimited losses, hehe.
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investorsito investorsito 9 years ago
What gave you that impression? Lol this will be down big time by July 23...Shorts can cover then or before, it just depends on how much money they want to make...Gravity is a beautiful thing...be greedy with your entry points, not your profits lol
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spongiformbobsqpants spongiformbobsqpants 9 years ago
I'm sure he is. He must be getting crushed.
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Quokkie Quokkie 9 years ago
You a short?? Lol
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investorsito investorsito 9 years ago
Big pull back today. Smart profit takers will jump out early. The end of of day/end of week dump will be swift, specially with all the gloom in China and Greece...holding over the weekend wouldn't be...wise....glta
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investorsito investorsito 9 years ago
Nice pop. Shorts will kill here
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rusty8350 rusty8350 9 years ago
Nice moves NEO
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rusty8350 rusty8350 9 years ago
Notice is our form 4's filed. NEO about to make some moves
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dayneyus dayneyus 9 years ago
Here is an older Zacks analysis of NEO , target $8.00, Earnings are ahead of that release. The other possibility that is a real possibility is a Take Over offer by one of the big is... like Abbot , Quest, Lab Corp...The new area of testing is being pioneered by small companies that the big gobble up.

http://scr.zacks.com/files/July%2021,%202014_NEO_Zeng_v001_l11dpi.pdf
?Small-Cap Research
July 21, 2014 Grant Zeng, CFA 312-265-9466 gzeng@zacks.com
10 S. Riverside Plaza, Chicago, IL 60606
?scr.zacks.com
NeoGenomics Inc.
Current Recommendation Outperform
Prior Recommendation N/A Date of Last Change 10/09/2011
52-Week High
52-Week Low $2.10 One-Year Return (%) 36.03 Beta 1.15 Average Daily Volume (sh) 678,764
Shares Outstanding (mil) 50 Market Capitalization ($mil) $218 Short Interest Ratio (days) 11.82 Institutional Ownership (%) N/A Insider Ownership (%) N/A
Annual Cash Dividend $0.00 Dividend Yield (%) 0.00
5-Yr. Historical Growth Rates
Sales (%) 51.6 Earnings Per Share (%) N/A Dividend (%) N/A
P/E using TTM EPS N/A
P/E using 2011 Estimate N/A P/E using 2012 Estimate N/A
Zacks Rank N/A
(NEO-NASDAQ)
NEO: record revenue for 2Q14, expecting continued growth for 2H14 and 2015-- Outperform
Current Price (07/20/14)
Twelve- Month Target Price
SUMMARY DATA
$5.44
$8.00
OUTLOOK
NeoGenomics just reported record revenue for 2Q14. As a result, we have increased our revenue estimates for 2H14 and for 2015 to 2017. Balance sheet remains strong.
Management has done a great job to limit the impact of Medicare reimbursement by increasing test volume, launching new products, and saving costs. Going forward, revenue will continue to grow in 2H2014 and beyond. NEO is well poised for long term growth.
We continue to rate NEO shares Outperform based on the Company s strong fundamentals.
??$4.71 Risk Level
Above Avg.,
Small-Growth Med-Biomed/Gene N/A
Type of Stock
Industry
Zacks Rank in Industry
ZACKS ESTIMATES Revenue
(in millions of $)
2013
2014
2015
2016
(Mar) 15.7 A 18.2 A
(Jun) 15.6 A 20.7 A
(Sep) 16.9 A 22.0 E
(Dec) 18.3 A 23.0 E
(Dec) 66.5 A
83.9 E
96.0 E 120.0 E
Earnings per Share
Q1 Q2 Q3 Q4 Year
(EPS is operating earnings before non recurring items)
(Mar)
2013 $0.00 A
2014 $0.00 A
2015 2016
(Jun) $0.01 A $0.01 A
(Sep) $0.02 A $0.00 E
(Dec) $0.02 A $0.00 E
(Dec) $0.04 A $0.02 E $0.07 E $0.16 E
62
Q1 Q2 Q3 Q4 Year
Zacks Projected EPS Growth Rate - Next 3 Years %
??© Copyright 2014, Zacks Investment Research. All Rights Reserved.
???WHAT S NEW
Record revenue reported for 2Q14;
We increase our revenue and earnings estimates for 2H14 and for 2015;
Balance sheet remains strong;
Maintain Outperform rating and raise our price target to $8.00 from previous $7.00 per share;
Record Revenue Reported for 2Q14
On July 17, NeoGenomics (NEO) reported its financial results for the second quarter ended June 30, 2014.
Total revenue for 2Q14 was $20.67 million, compared to $15.6 million for 2Q13, a 32.5% increase. This revenue growth was achieved despite a $1.1 million reduction in revenue recorded to account for a conservative interpretation of the new National Correct Coding Initiative (NCCI) edits relating to
billing Medicare for FISH testing.
This record revenue of second quarter of 2014 also beat our estimate of $18.8 million. The revenue growth in 2Q14 was mainly driven by 40% test volume increase.
Gross margin increased to 49.5% in 2Q14 from 45.9% in 2Q13. This increased gross margin was achieved due to reduced average cost-of-goods-sold-per-test by 11.7%, although average revenue-per- test decreased by 5.3% from the first quarter of last year due to the NCCI FISH matter.
Total operating expenses were $9.7 million in 2Q14, compared to $6.7 million in 2Q13, an increase of 45.2%. This increase was driven by an increase in the size of its sales team, increased commission and bad debt expense related to the increase in revenue, and continued investments in facilities, information technology, and new test development activities.
Net income was $0.3 million for 2Q14 ($0.01/share) compared to $0.3 million ($0.01/share) for 2Q13. Net income for 2Q14 also beat our estimate of $0.1 million ($0.00/share).
Adjusted EBITDA for 2Q14 was $2.1 million, a 15.8% increase from last year.
Absent the impacts of the NCCI FISH matter, the Company estimates that Adjusted EBITDA would have been $3.1 million and net income would have been approximately $1.1 million, or $0.02/share.
We Increase Our Estimates for 2H14 and 2015
We are pleased to see continued revenue and earnings growth for the first half of 2014, especially when the company is faced with continued pressure on reimbursement. The reimbursement challenge is for the whole industry, but NEO management is doing a great job to manage its negative impact on both top line and bottom line of the Company.
NEO is attracting new clients and gaining market share due to its stream of innovative new tests and consistently high service levels. The company has been successful at increasing productivity and reducing costs. As a result, NEO achieved a 32.5% growth in revenue and 360 basis point expansion in gross margin in 2Q14, particularly in the face of a 5.2% reduction in average unit price. We think this is a significant accomplishment. NEO also achieved a 12% reduction in average cost/test in the second quarter. According to management, average cost per test can be further reduced by 8-10% in both 2014 and in 2015 on a full year basis.
?????????Zacks Investment Research Page 2 scr.zacks.com
As a result of the better than expected first half financials, we increased our estimates for 2H14 and full year of 2015.
Specifically, we increase our revenue estimate for 3Q14 to $22 million from previous $19.1 million and for 4Q14 to $23 million from previous $19.3 million. For the year 2014, we increase our estimate for total revenue to $83.9 million from previous $75.4 million.
We increase our revenue estimate to $96, $120 and $150 million from previous $85, $110 million and $145 million respectively for 2015, 2016 and 2017. Our estimates include revenue from Path Logic and the negative impact from NCCI matter.
Revenue increase should be achieved from new accounts, new products offering, test services for biopharmaceutical companies and from expansion to new geographies.
Summary of Quarterly Performance
3Q12
$14,202
25.5%
41.5%
40.6%
($975.0)
($0.02)
4Q12
$14,893
15.5%
43.2%
38.9%
($113.0)
$0.00
1Q13
$15,657
3.3%
46.3%
39.0%
$3.0
$0.00
2Q13
$15,603
-0.1%
45.9%
38.7%
$273.0
$0.01
3Q13
$16,884
18.9%
48.4%
39.5%
$929.0
$0.02
4Q13
$18,323
23.0%
50.0%
39.9%
$963.0
$0.02
1Q14
$18,182
16.1%
47.9%
42.3%
$102.0
$0.00
2Q14
49.5%
43.7%
???Total Revenue ($, 000's)
?% Growth
??Gross Margin
??SG&A as a % of Revenue
??Net Income (Loss) ($,000's)
?Diluted EPS
??Adjusted EBITDA ($, 000's)
?% Growth
??Test Volume (000's)
?% Growth
??Average Price/Test
?% Growth
???Average Cost/Test
$229.00
??% Growth
-11.9%
??$20,670
?32.5%
???$274.0
?$0.01
?$842.0 $1,439.0
$1,794.0 $1,825.0 $2,163.0 $2,733.0 $1,685.0
21.5%
28,315
41.7%
$501.58
-11.5%
36.4%
30,513
35.3%
$488.09
-14.6%
$277.25
1.1%
32,088
19.1%
$488.00
-13.3%
$262.00
-6.1%
32,519
12.7%
$480.00
-11.3%
$260.00
156.9%
33,723
19.1%
$501.00
-0.1%
89.9%
38,987
27.8%
$469.99
-3.7%
$234.96
-15.3%
-6.1%
38,734
20.7%
$469.00
-3.9%
$245.00
-6.5%
$2,116.0
?15.9%
?45,475
?39.8%
?$455.00
?-5.2%
???????????Zacks Investment Research Page 3 scr.zacks.com
Summary of Annual Performance
2010 2011 2012
$34,371 $43,484 $59,866
16.6% 26.5% 37.7%
45.9% 44.7% 44.8%
54.5% 45.6% 39.0%
2013 2014E 2015E
2016E 2017E
?$, 000's
??Total Revenue
?% Growth
??Gross Margin
??SG&A as a % of Revenue
??Net Income (Loss)
?Diluted EPS
??Adjusted EBITDA
??Test Volume Growth
?($3,303.0) (0.09)
($566.0)
25.5%
($1,177.0) (0.03)
$2,134.0
33.1%
$66.0 0.00
$5,999.0
50.2%
$2,033.0 0.04
$8,515.0
19.8%
$856.0 0.02
$8,500.0
30.0%
$3,960.0 0.07
$9,500.0
35.0%
$9,775.0 0.16
$15,000.0
40.0%
$18,700.0 0.32
$20,200.0
45.0%
$66,467 $83,852 $96,000 11.0% 26.2% 14.5%
47.7% 48.9% 50.0%
39.3% 43.2% 41.7%
$120,000 $150,000 25.0% 25.0%
50.0% 50.0%
37.1% 32.0%
?????????Balance Sheet Remains Strong
As of June 30, 2014, NeoGenomics had $5.0 million in cash. The company also has approximate $5.7 million of availability under its credit line. In addition, the company has $100 million shelf registration statement currently effective at SEC.
There is no debt for NEO as of June 30, 2014.
With the strong balance sheet, NEO will be able to focus on its long term growth strategy without concern about short term cash strain.
We Raise Our Price Target to $8.00 Per Share
We continue to rate NEO shares an Outperform and raise our price target to $8.00 per share from previous $7.00 per share.
NeoGenomics is an emerging leader in the genetic/molecular cancer testing market. The Company holds numerous competitive advantages over its competitors. We are especially impressed by the Company s fast turn-around times, tech-only reporting solution and state of the art laboratory information system (LIS), which are key elements that drive top line growth.
NeoGenomics has achieved strong financial performance. Revenue grew from $11.5 million in 2007 to $66.5 million in 2013, a tremendous 34% compound annual growth rate (CAGR) for the six-year period. We estimate revenue will further grow to $150 million in 2017, a CAGR of 23% from 2013 to 2017.
We are optimistic about the strength of the Company s business model. Fundamentals remain strong for NEO. Pipeline is strong too. The Company is executing plans to gain further efficiencies. By growing its business, lowering its costs and driving innovation, NeoGenomics is becoming America's premier cancer testing laboratory.
We initiated coverage of NEO in early Oct 2011 when share price was about $1.00 per share. Right now, shares of NEO are trading at about $5.00. We think there is still room for further price appreciation. Based on its strong fundamentals, we think shares of NeoGenomics are still undervalued at current market price. Currently, NEO is trading at about $5.0 per share which values the Company at $250 million in market cap based on 50 million shares outstanding. This is still a discount compared to its peers. Based on our financial model, revenue will grow at 23% CAGR from 2013 to 2017. We arrive at
??????Zacks Investment Research Page 4 scr.zacks.com
our price target of $8.00 per share by using 35 x P/E multiple and coupled with our estimated EPS of $0.32 in 2017, discounted at 20% for two years. This valuation corresponds to approximately 4 times our 2015 estimated revenue of $96 million. Our price target values NEO at $400 million in market cap which we think is still conservative.
NEO could be an acquisition target for big players. The genetic/molecular industry is quite fragmented currently, but merger & acquisition activity is looming. We all know that big players like LabCorp and Quest Diagnostics are increasingly acquiring smaller players in this field. Qiagen NV, a research service company based in Netherland, entered into genetic/molecular testing market in 2007 by acquiring Digene Corp. Since then, Qiagen has been quite aggressive in acquisition of other small genetic/molecular testing companies.
With the increased activity in M&A in the industry, NEO could be an easy target for acquisition. At this point, we think NEO is a stock with low risk and high return.
???Zacks Investment Research Page 5 scr.zacks.com
?PROJECTED INCOME STATEMENT
$ in million except per share data
Total Revenues
YOY Growth
Gross Income $26.84 $7.25
Operating Income
Pre-Tax Income
$1.2 $0.3 $0.5 $1.2 $1.2 $3.2 $0.4 $0.6 $0.6 $0.7 $2.3 $5.0 $12.0 $22.5 2.0% 1.9% 3.2% 6.9% 6.6% 4.8% 2.2% 2.8% 2.9% 2.8% 2.7% 5.2% 10.0% 15.0%
Reported Net Income
Reported EPS
5.3% 4.7% 3.1% 53.2 53.6 52.9
$0.02 $0.02 $0.04
$0.00 $0.00 $0.00
$0.9 $0.9 $2.0 $0.02 $0.02 $0.04
0.6% 1.3% 53.5 53.7
$0.00 $0.01
$0.00 $0.00
$0.1 $0.3 $0.00 $0.01
1.0% 4.1% 54.0 57.0
$0.02 $0.07
$0.00 $0.00
$0.9 $4.0 $0.02 $0.07
8.1% 60.0
$0.16
$0.00
$9.8 $0.16
Non GAAP Net Income Non GAAP EPS
Income taxes(benefit)
$0.1 $0.2 11.0% 7.0%
$0.9 $2.0
$0.0 $0.1 20.9% 15.7%
$0.1 $0.3
$0.1 $0.1 30.3% 28.6%
$0.2 $0.3
-74.4% -70.8% 1.0% 1.1%
54.2 54.4
$0.00 $0.00
$0.00 $0.00
$0.2 $0.3 $0.00 $0.00
$0.3 $0.5 24.5% 12.0%
$0.9 $4.0
$1.7 15.0%
$9.8
Tax Rate
YOY Growth Net Margin
Diluted Shares Out
One time charge
Source: Company filings and Zacks Investment Research
2012 A (Dec)
FYA
$59.87
2013A (Dec)
2014E (Dec)
2015E (Dec)
FYE
$96.00
2016E (Dec)
FYE
$120.00
2017E (Dec)
FYE
$150.00
© Copyright 2014, Zacks Investment Research. All Rights Reserved.
Q1
$15.66
Q2
$15.60
Q3
$16.88
Q4
$18.32
FYA
$66.47
Q1
$18.18
Q2
$20.67
Q3
$22.00
Q4
$23.00
FYE
$83.85
37.7%
CoGS 33.03 8.41 8.45 8.71 9.16 34.73 9.47 10.43 11.22 11.70 42.82 48.00 60.00 75.00
Gross Margin 44.8% 46.3%
SG&A $23.34 $6.11
% SG&A
R&D
% R&D
Operating Margin
Other Net
39.0% 39.0%
3.3%
-0.1%
$7.16
45.9%
$6.04 38.7%
18.9%
$8.17
48.4%
$6.67 39.5%
23.0%
$9.16 $31.74 $8.71 $10.24 $10.78 $11.30 $41.03 $48.00 $60.00 $75.00 50.0% 47.7% 47.9% 49.5% 49.0% 49.1% 48.9% 50.0% 50.0% 50.0%
$7.31 $26.12 $7.69 $9.03 $9.50 $10.00 $36.22 $40.00 $44.50 $48.00 39.9% 39.3% 42.3% 43.7% 43.2% 43.5% 43.2% 41.7% 37.1% 32.0%
$0.62
$0.34
$0.65 $2.44 $0.63 $0.63 $0.65 $0.65 $2.56 $3.00 $3.50 $4.50
11.0%
16.1%
32.5%
30.3%
25.5%
26.2%
14.5%
25.0%
25.0%
$2.28 $0.84
3.8% 5.3% 3.9% 2.0% 3.5% 3.7% 3.5% 3.1% 3.0% 2.8% 3.1% 3.1% 2.9% 3.0%
($1.1)
$0.1
$0.0 0.0%
$0.1
- 0.1%
46.4
$0.00
$0.00
$0.1 $0.00
($0.3) ($0.2)
$0.0 $0.3
$0.0 $0.0 85.0% 0.0%
$0.0 $0.3
-99.5% -50.5% 0.0% 1.7%
50.9 53.7
$0.00 $0.01
$0.00 $0.00
$0.0 $0.3 $0.00 $0.01
($0.2)
$0.9
$0.0 3.1%
$0.9
($0.2) ($1.0) ($0.3) ($0.3) ($0.3) ($0.3) ($1.1) ($0.5) ($0.5)
$1.0 $2.2 $0.1 $0.3 $0.3 $0.4 $1.1 $4.5 $11.5
($0.5)
$22.0
$3.3 15.0%
$18.7
91.3% 12.5%
62.0
$0.30
$1.00
$19.7 $0.32
- - 2980.3% 3300.0% 0.4%
-57.9% 362.6% 146.8%
??HISTORICAL ZACKS RECOMMENDATIONS
????DISCLOSURES
The following disclosures relate to relationships between Zacks Small-Cap Research ( Zacks SCR ), a division of Zacks Investment Research ( ZIR ), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe.
ANALYST DISCLOSURES
I, Grant Zeng, CFA, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
INVESMENT BANKING, REFERRALS, AND FEES FOR SERVICE
Zacks SCR does not provide nor has received compensation for investment banking services on the securities covered in this report. Zacks SCR does not expect to receive compensation for investment banking services on the Small-Cap Universe. Zacks SCR may seek to provide referrals for a fee to investment banks. Zacks & Co., a separate legal entity from ZIR, is, among others, one of these investment banks. Referrals may include securities and issuers noted in this report. Zacks & Co. may have paid referral fees to Zacks SCR related to some of the securities and issuers noted in this report. From time to time, Zacks SCR pays investment banks, including Zacks & Co., a referral fee for research coverage.
Zacks SCR has received compensation for non-investment banking services on the Small-Cap Universe, and expects to receive additional compensation for non-investment banking services on the Small-Cap Universe, paid by issuers of securities covered by Zacks SCR Analysts. Non-investment banking services include investor relations services and software, financial database analysis, advertising services, brokerage services, advisory services, equity research, investment management, non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per client basis and are subject to the number of services contracted. Fees typically range between ten thousand and fifty thousand USD per annum.
????POLICY DISCLOSURES
??© Copyright 2014, Zacks Investment Research. All Rights Reserved.
Zacks SCR Analysts are restricted from holding or trading securities placed on the ZIR, SCR, or Zacks & Co. restricted list, which may include issuers in the Small-Cap Universe. ZIR and Zacks SCR do not make a market in any security nor do they act as dealers in securities. Each Zacks SCR Analyst has full discretion on the rating and price target based on his or her own due diligence. Analysts are paid in part based on the overall profitability of Zacks SCR. Such profitability is derived from a variety of sources and includes payments received from issuers of securities covered by Zacks SCR for services described above. No part of analyst compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in any report or article.
ADDITIONAL INFORMATION
Additional information is available upon request. Zacks SCR reports are based on data obtained from sources we believe to be reliable, but are not guaranteed as to be accurate nor do we purport to be complete. Because of individual objectives, this report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.
ZACKS RATING & RECOMMENDATION
ZIR uses the following rating system for the 1104 companies whose securities it covers, including securities covered by Zacks SCR: Buy/Outperform: The analyst expects that the subject company will outperform the broader U.S. equity market over the next one to two quarters. Hold/Neutral: The analyst expects that the company will perform in line with the broader U.S. equity market over the next one to two quarters. Sell/Underperform: The analyst expects the company will underperform the broader U.S. Equity market over the next one to two quarters.
The current distribution is as follows: Buy/Outperform- 16.0%, Hold/Neutral- 78.4%, Sell/Underperform ? 4.8%. Data is as of midnight on the business day immediately prior to this publication.
?
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dayneyus dayneyus 9 years ago
I'm expecting that analysts who report on NEO will report before the next conference call. NEO has already guided better then analyst forecast for 2015. $6 is a real possibility before the conference call, but that call will need to have positive earning surprises to maintain that price into next year where double digit earnings are expected.
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rusty8350 rusty8350 9 years ago
Nice day here, breaking above five and holding with strength.....
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dayneyus dayneyus 9 years ago
NEO is on ZACK's accumulate list and analysts that follow it are positive. The other big shoe to come is they will launch a revolutionary 90% accurate Test for Prostate Cancer that uses urine/blood virtually eliminating the need for biopsy. The technology behind it will form the bases for other test advances in genetic biomarker based medicine.
You might want to follow the little company that produced that technology symbol HDVY. They are on their last legs this test will mean make or break for them. If it launches HDVY will Make big gains.
http://investorshub.advfn.com/Health-Discovery-Corporation-HDVY-4504/
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owen3838 owen3838 9 years ago
What news sparked the jump to almost $5? Im confused
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DewDiligence DewDiligence 9 years ago
Does NEO ever not beat guidance? It seems they deliberately lowball guidance (which is what many companies do, of course).
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