Tempus AI (NASDAQ:TEM) Issues Quarterly Earnings Results

Tempus AI (NASDAQ:TEM) issued its quarterly earnings results on Tuesday. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.21) by $0.08, FiscalAI reports. Tempus AI had a negative net margin of 19.27% and a negative return on equity of 53.30%. The firm had revenue of $348.12 million for the quarter, compared to analysts’ expectations of $345.44 million. During the same period in the previous year, the firm posted ($0.24) EPS. The company’s revenue for the quarter was up 36.1% on a year-over-year basis.

Here are the key takeaways from Tempus AI’s conference call:

• Tempus raised full-year guidance to $1.59–$1.60 billion in revenue with ~$65 million adjusted EBITDA after reporting Q1 revenue of $348.1M, up ~36% year?over?year.
• The data & applications business showed strong momentum with $87M revenue (+40.5% YoY), third straight quarter of bookings >$100M, growing TCV, and new/expanded strategic collaborations including Merck and Gilead.
• Diagnostics performance was mixed: therapy?selection oncology revenue and units were strong (~28% unit growth), hereditary testing slowed but is expected to return to mid?teens growth in H2, and MRD volumes are rising but ramp is being paced by reimbursement dynamics.
• Operationally, Q1 free cash flow was impacted by timing and payables but management expects significant improvement in Q2, continuing EBITDA improvement across the year, and says the company does not need additional financing.

Tempus AI Stock Performance

Shares of TEM stock traded down $1.74 on Tuesday, reaching $54.07. The stock had a trading volume of 5,701,474 shares, compared to its average volume of 5,470,119. The company has a quick ratio of 3.00, a current ratio of 3.13 and a debt-to-equity ratio of 2.52. The firm’s 50-day moving average is $50.56 and its two-hundred day moving average is $62.91. The firm has a market capitalization of $9.67 billion, a price-to-earnings ratio of -38.35 and a beta of 3.99. Tempus AI has a 12 month low of $41.73 and a 12 month high of $104.32.

Insider Buying and Selling

In other news, CAO Ryan M. Bartolucci sold 2,902 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $59.05, for a total value of $171,363.10. Following the sale, the chief accounting officer directly owned 41,159 shares of the company’s stock, valued at approximately $2,430,438.95. This represents a 6.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Andrew Polovin sold 10,949 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $60.31, for a total transaction of $660,334.19. Following the completion of the sale, the executive vice president directly owned 126,918 shares in the company, valued at approximately $7,654,424.58. The trade was a 7.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 563,471 shares of company stock worth $29,837,342 in the last 90 days. 24.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Tempus AI

A number of institutional investors and hedge funds have recently modified their holdings of TEM. Royal Bank of Canada raised its holdings in Tempus AI by 201.2% in the 1st quarter. Royal Bank of Canada now owns 25,988 shares of the company’s stock valued at $1,253,000 after acquiring an additional 17,359 shares during the period. Rhumbline Advisers bought a new position in Tempus AI in the 1st quarter valued at about $116,000. Prudential Financial Inc. bought a new position in Tempus AI in the 2nd quarter valued at about $276,000. Russell Investments Group Ltd. raised its holdings in Tempus AI by 21.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 6,527 shares of the company’s stock valued at $415,000 after acquiring an additional 1,146 shares during the period. Finally, Invesco Ltd. raised its holdings in Tempus AI by 2,926.6% in the 2nd quarter. Invesco Ltd. now owns 211,621 shares of the company’s stock valued at $13,446,000 after acquiring an additional 204,629 shares during the period. 24.22% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have commented on TEM. Needham & Company LLC reissued a “buy” rating and set a $75.00 price target on shares of Tempus AI in a research report on Wednesday, March 11th. Stifel Nicolaus set a $60.00 price target on shares of Tempus AI in a research report on Wednesday, February 25th. Morgan Stanley cut their price target on shares of Tempus AI from $85.00 to $70.00 and set an “overweight” rating on the stock in a research report on Tuesday, March 3rd. Guggenheim cut their price target on shares of Tempus AI from $95.00 to $60.00 and set a “buy” rating on the stock in a research report on Monday, March 30th. Finally, Jefferies Financial Group began coverage on shares of Tempus AI in a research report on Monday, April 13th. They set an “underperform” rating and a $35.00 price target on the stock. Nine research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Tempus AI currently has an average rating of “Moderate Buy” and a consensus price target of $71.36.

Tempus AI Company Profile

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company’s core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.