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NeoGenomics Preliminary Q1 Revenues Increase 11 Percent; Firm Withdraws 2020 Guidance

NEW YORK – NeoGenomics reported on Thursday that its preliminary revenues for the first quarter of 2020 are expected to increase 11 percent year over year to $106 million.

The company said it faced a material impact to clinical test volume in the last two weeks of March due to the COVID-19 pandemic. Clinical test volume was up 7 percent from the previous year's first quarter but decreased 20 percent year over year in the last two weeks of March and continuing into early April, the company noted.

NeoGenomics also said it is withdrawing the previously issued full-year 2020 guidance as a result of uncertainty due to the COVID-19 pandemic. The company added that adjusted EBITDA will likely be below previously issued guidance of $8 million. Despite the downturn, NeoGenomics said it is not planning to lay off employees.

The company has cash in excess of $120 million, with $39 million restricted for construction of its new Fort Myers, Florida-based headquarters. In an analyst note, SVB Leerink's Puneet Souda said he expects NeoGenomics to pursue M&A opportunities due to "the recently suppressed valuations among both public and private companies" as a result of COVID-19.

Full financial results for the first quarter are scheduled to be released on April 28.