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How Does NeoGenomics, Inc.'s (NASDAQ:NEO) Earnings Growth Stack Up Against Industry Performance?

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Simply Wall St
·2 min read
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After looking at NeoGenomics, Inc.'s (NasdaqCM:NEO) latest earnings announcement (31 December 2019), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether NeoGenomics's performance has been impacted by industry movements. In this article I briefly touch on my key findings.

View our latest analysis for NeoGenomics

How Well Did NEO Perform?

NEO recently turned a profit of US$8.0m (most recent trailing twelve-months) compared to its average loss of -US$4.8m over the past five years.

NasdaqCM:NEO Income Statement March 27th 2020
NasdaqCM:NEO Income Statement March 27th 2020

In terms of returns from investment, NeoGenomics has fallen short of achieving a 20% return on equity (ROE), recording 1.6% instead. Furthermore, its return on assets (ROA) of 1.7% is below the US Life Sciences industry of 7.8%, indicating NeoGenomics's are utilized less efficiently. However, its return on capital (ROC), which also accounts for NeoGenomics’s debt level, has increased over the past 3 years from 1.9% to 2.5%.

What does this mean?

Though NeoGenomics's past data is helpful, it is only one aspect of my investment thesis. While NeoGenomics has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research NeoGenomics to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for NEO’s future growth? Take a look at our free research report of analyst consensus for NEO’s outlook.

  2. Financial Health: Are NEO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.