Latest news with #Genomics
Yahoo
14-08-2025
- Business
- Yahoo
Tempus AI Stock Jumps Post Q2 as EBITDA Breakeven Nears: Buy or Hold?
Tempus AI's TEM stock has surged nearly 13% since its second-quarter 2025 earnings release. The quarter saw strong top-line growth, operating leverage and strategic positioning in a high-value market. The company posted an 89.6% year-over-year revenue jump, driven by a significant surge in Genomics revenues from accelerating oncology and hereditary testing volumes, along with solid growth in its Data and Services segment, fueled by AI-driven data licensing. Gross profit more than doubled, while adjusted EBITDA losses narrowed, bringing the company within reach of profitability. With raised full-year revenue guidance, strengthened liquidity through a $750 million convertible note offering and targeted advancements, Tempus AI is emerging as a prominent player in AI-enabled precision medicine, a profile currently in sharp focus among growth-oriented investors. So far in August, shares of Tempus AI have surged 17.3% against a 3% decline of the Medical Info Systems industry. The Medical sector has risen 0.4% rise and the S&P 500 has improved 0.8% in the meantime. The company has also outperformed other players in the health infotech field, like iRhythm Technologies IRTC and SOPHiA GENETICS SOPH, which rose 15.8% and 0.4%, respectively, during the said period. Month-To-Date Share Comparison Image Source: Zacks Investment Research Q2 Results Show Clear Path to Profitability Tempus AI's second-quarter 2025 results highlight a clear path to profitability, driven by strong revenue growth, margin expansion and disciplined cost control. Revenues rose 89.6% year over year, beating the Zacks Consensus Estimate by 5.12%, led by a 115% surge in Genomics from accelerating oncology and hereditary testing volumes and a 35.7% increase in high-margin Data and Services from AI-enabled data licensing. Gross profit jumped 158%, lifting adjusted gross margin to 62% despite a 32.2% rise in the cost of revenues (genomics, data and services). Adjusted operating expenses fell 57.8%, narrowing adjusted EBITDA losses to $5.6 million from $31.2 million a year ago. This also marked an improvement from the first quarter's $16 million loss and brought the company closer to breakeven. Management reaffirmed its $5 million adjusted EBITDA target for 2025, a $110 million improvement over 2024. Tempus AI also has a strong cash position, holding $293 million at the end of the quarter, plus a $750 million convertible note issued after the quarter at a low 0.75% interest rate. This funding will help the company pay down debt and support future growth. With its high-margin revenues growing quickly, profits improving and tight cost control, Tempus AI is on track to reach sustainable profitability soon. TEM Ahead of Moving Averages Too Going by the technical indicators, the stock is trading above its 50-day and 200-day moving averages, indicating upward momentum and price stability. TEM Above the 50 and 200-day SMA Image Source: Zacks Investment Research Is TEM Fairly Valued? TEM stock is currently overvalued compared to its industry, as shown in the chart below. The company is currently trading at a forward 12-month price-to-sales (P/S) ratio of 7.98, a premium to the broader industry's average of 5.57 and a little below the stock's one-year median. The stock is also trading higher than other industry players like iRhythm (6.57X) and SOPHiA GENETICS (2.58X). Image Source: Zacks Investment Research Final Take Despite Tempus AI's stellar second-quarter 2025 performance, marked by strong revenue growth, narrowed loss, rapid margin expansion, disciplined cost control and a strong liquidity position, the stock's current premium valuation suggests that much of this optimism may already be priced in. Additionally, the company remains in a net loss position, and its path to sustained profitability will depend on maintaining growth momentum through the upcoming quarters while keeping costs under control. With shares already trading at elevated levels, we advise those who already have this Zacks Rank #3 (Hold) stock in their portfolios to maintain their positions, while others may wait for a more favorable entry point. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iRhythm Technologies (IRTC) : Free Stock Analysis Report SOPHiA GENETICS SA (SOPH) : Free Stock Analysis Report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
PacBio (PACB) Q2 Earnings Report Preview: What To Look For
Genomics company Pacific Biosciences of California (NASDAQ:PACB) will be announcing earnings results this Thursday afternoon. Here's what to expect. PacBio beat analysts' revenue expectations by 5.2% last quarter, reporting revenues of $37.15 million, down 4.3% year on year. It was a stunning quarter for the company, with a solid beat of analysts' EPS estimates. Is PacBio a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting PacBio's revenue to grow 2.6% year on year to $36.96 million, a reversal from the 24.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 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. PacBio has missed Wall Street's revenue estimates four times over the last two years. Looking at PacBio's peers in the life sciences tools & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Illumina's revenues decreased 3% year on year, beating analysts' expectations by 1%, and West Pharmaceutical Services reported revenues up 9.2%, topping estimates by 5.6%. Illumina traded down 8% following the results while West Pharmaceutical Services was up 15.9%. Read our full analysis of Illumina's results here and West Pharmaceutical Services's results here. Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the life sciences tools & services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.1% on average over the last month. PacBio is down 4.1% during the same time and is heading into earnings with an average analyst price target of $2.06 (compared to the current share price of $1.41). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
31-07-2025
- Business
- Yahoo
Illumina (NASDAQ:ILMN) Surprises With Q2 Sales
Genomics company Illumina (NASDAQ:ILMN) beat Wall Street's revenue expectations in Q2 CY2025, but sales fell by 3% year on year to $1.06 billion. Its non-GAAP profit of $0.36 per share was 64.4% below analysts' consensus estimates. Is now the time to buy Illumina? Find out in our full research report. Illumina (ILMN) Q2 CY2025 Highlights: Revenue: $1.06 billion vs analyst estimates of $1.05 billion (3% year-on-year decline, 1% beat) Adjusted EPS: $0.36 vs analyst expectations of $1.01 (64.4% miss) Adjusted Operating Income: $252 million vs analyst estimates of $221.3 million (23.8% margin, 13.8% beat) Management raised its full-year Adjusted EPS guidance to $4.50 at the midpoint, a 5.9% increase Operating Margin: 20.2%, down from 40.5% in the same quarter last year Free Cash Flow Margin: 19.3%, up from 4.5% in the same quarter last year Organic Revenue fell 3% year on year (-6.2% in the same quarter last year) Market Capitalization: $16.88 billion Company Overview Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ:ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Illumina's sales grew at a mediocre 5% compounded annual growth rate over the last five years. This fell short of our benchmark for the healthcare sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Illumina's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.4% annually. We can dig further into the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Illumina's organic revenue averaged 1.3% year-on-year declines. Because this number aligns with its two-year revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Illumina's revenue fell by 3% year on year to $1.06 billion but beat Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection doesn't excite us and suggests its newer products and services will not catalyze better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Adjusted Operating Margin Illumina has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average adjusted operating margin of 22.4%. Looking at the trend in its profitability, Illumina's adjusted operating margin decreased by 5 percentage points over the last five years, but it rose by 1.8 percentage points on a two-year basis. Still, shareholders will want to see Illumina become more profitable in the future. This quarter, Illumina generated an adjusted operating margin profit margin of 23.8%, up 1.6 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Illumina, its EPS declined by 10.3% annually over the last five years while its revenue grew by 5%. However, its adjusted operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. Diving into the nuances of Illumina's earnings can give us a better understanding of its performance. As we mentioned earlier, Illumina's adjusted operating margin expanded this quarter but declined by 5 percentage points over the last five years. Its share count also grew by 6.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, Illumina reported adjusted EPS at $0.36, down from $1.09 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Illumina's full-year EPS of $3.42 to grow 30.2%. Key Takeaways from Illumina's Q2 Results We were impressed by how significantly Illumina blew past analysts' full-year EPS guidance expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its EPS missed. Overall, this print was mixed. Investors were likely hoping for more, and shares traded down 1.7% to $101.03 immediately after reporting. So do we think Illumina is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. 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Globe and Mail
02-07-2025
- Business
- Globe and Mail
What's Fueling Tempus AI's Explosive Sales Growth?
Chicago-based Tempus AI, Inc. TEM is experiencing robust revenue growth, marked by record-setting financial performance. In the first quarter of 2025, the company reported a 75.4% year-over-year increase in total revenues, driven by 89% growth in Genomics revenues and a 43% rise in Data & Services revenues. The Genomics business benefited from 20% volume growth in oncology tests (legacy Tempus clinical testing) and higher average revenue per test, driven by increased Medicare reimbursement rates. Additionally, hereditary testing contributed $63.5 million in Genomics revenues on 23% volume growth from the February acquisition of Ambry Genetics. The Data & Services segment's growth was driven by a 58% improvement in Insights, the company's data licensing business. This business has scaled significantly by signing deals with companies like Novartis, Merck EMD, Takeda and United Therapeutics last year. TEM made several recent developments that are setting the stage for sales growth. In line with this, Tempus AI signed a $200 million data and modeling license agreement with AstraZeneca AZN and Pathos to build the world's largest foundation model. Additionally, the company's new liquid biopsy assay, xM for treatment response monitoring (TRM), is scheduled for clinical launch in the coming months. Furthermore, the company's first whole-genome sequencing (WGS) test, Xh, is slated for clinical launch by next year. Sales Growth of TEM's Competitors Exact Sciences Corporation EXAS posted a 10.9% revenue rise in the first quarter of 2025, led by strong growth in its Screening segment, driven by strong adoption of Cologuard (a non-invasive, patient-friendly, stool-based DNA screening test) and the launch of Cologuard Plus. Precision Oncology revenues grew 4% due to continued adoption of Oncotype DX (cancer diagnostic tests and services) and the launch of Oncodetect, a molecular residual disease test. Adjusted EBITDA rose 61% to $63 million, supported by volume leverage and operational efficiency. Exelixis EXEL reported strong revenue growth in the first quarter of 2025, with total revenues increasing 30.6% year over year. The performance was largely driven by the ongoing success of the Cabozantinib franchise, particularly the recent U.S. launch of CABOMETYX for the treatment of advanced neuroendocrine tumors. TEM's Price Performance and Valuation In the past year, Tempus AI shares have surged 79.1%, outperforming the industry's 39.9% growth and the S&P 500 composite's 13% improvement. TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.85X compared to the industry average of 5.91X. TEM Stock Estimate Trend Earnings estimates for Tempus AI in 2025 and 2026 are showing a mixed picture. TEM stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Exact Sciences Corporation (EXAS): Free Stock Analysis Report Tempus AI, Inc. (TEM): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Channel 4
17-06-2025
- Health
- Channel 4
How new technologies can help improve the nation's health
A simple test for the genetic risk of cardiovascular disease has been developed which, alongside the current risk assessment by GPs, could prevent 20,000 cases of CVD over 10 years, it is claimed. Seven million people in the UK live with the disease and it is responsible for one in four deaths. 40 to 55-year-olds are already assessed by their GPs for their risk of developing CVD and sometimes put on statins (which lower cholesterol levels in the blood) – as a prevention. But it is a calculated risk. Professor Ahmet Fuat led the trial into the new test – called 'the Health Insight Test.' He found that in 13% of cases it significantly changed the risk of CVD. 'So some patients , the risk was downgraded. Some patients, around 8%, it was upgraded to high or very high, and the patients then were able to make a better judgment and decision on what they did, ' he said. This could be by taking statins or modifying their lifestyles. What they found out most of all from the trial was that the test fitted in well with the way GPs currently work. However the test, which has been approved by the medical regulator the MHRA, is yet to be taken up by the NHS and is only available through a private insurance provider. No figures have been made available as to how much it would cost the NHS. Genomics are the Oxford based company behind the new test. We asked their CEO Professor Sir Peter Donnelly how likely he thought it was that the NHS would take up his innovation? 'It fits in very well with the Secretary of State's focus on moving from sickness to prevention, on the idea of us being much better at understanding individualised risk and personalising healthcare. So this plays absolutely into that, and it has substantial benefits in terms of preventing disease.' Prevention is one of the three shifts that will be in the 10 year health plan the government is due to publish shortly and we understand within that, one of the sections will be on personalised medicine, using technologies like genomics. The issue for the NHS will be ensuring new technologies are able to make their way from the drawing board to the frontline. Tim Horton, from the think tank the Health Foundation, said the litmus test for the 10 year plan is not simply to champion innovation but to have a more sophisticated approach to making it happen at scale around the NHS. 'It is not just having the technology that gets you the benefits but implementing it and using it effectively in the real world,' Mr Horton said. Revealed: NHS maternity units with most missing midwives The reasons behind 'serious' NHS nursing shortages in England 'Disturbing': Jeremy Hunt responds to NHS investigation
