US stock futures dip as Nvidia earnings spark little cheer
On Tuesday, Cantor Fitzgerald maintained an Overweight rating on Nano-X Imaging (NASDAQ:NNOX) stock, while reducing the price target from the previous $12.00 to $9.00. The adjustment followed the company’s announcement of its fourth-quarter 2024 operating results and recent corporate updates. According to InvestingPro data, NNOX shares have declined over 30% year-to-date, currently trading at $5, significantly below their 52-week high of $11.39.
Nano-X Imaging reported fourth-quarter revenues of $3.0 million, which fell short of Cantor Fitzgerald’s projection of $4.1 million and the FactSet consensus of $3.7 million. Despite the lower-than-expected revenue, the company saw a year-over-year (YoY) increase of approximately 25%. The growth was primarily attributed to its teleradiology services, which experienced a 23% YoY rise to $2.8 million. However, the firm’s AI solutions saw a slight decline of about 1% YoY, generating $83 thousand in revenue. InvestingPro analysis reveals the company faces profitability challenges with a negative gross profit margin, though it maintains strong liquidity with a current ratio of 4.64.
The company also generated income from the sales and deployment of its imaging systems, adding $136 thousand in revenue for the quarter. This was largely due to the deployment of ARC systems in the United States and the sale of 2D systems in Africa.
Cantor Fitzgerald’s reiteration of the Overweight rating was influenced by the potential for increased U.S. deployments, bolstered by an expanded indication for general scans and the expected introduction of next-generation devices currently under FDA review. Despite the reduction in the price target, the firm’s stance remains optimistic about Nano-X Imaging’s future performance.
In other recent news, Nano X Imaging Ltd . reported its financial results for the fourth quarter of 2024, which showed a wider net loss compared to the previous year. The company posted a GAAP net loss of $14.1 million, up from $10.2 million in Q4 2023, while revenue increased to $3 million from $2.4 million in the same period last year. This revenue growth was primarily driven by the company’s teleradiology services. Despite the financial challenges, Nano X emphasized its strategic advancements, including obtaining FDA clearance and CE Mark for key products. The company is actively expanding its market presence in the U.S. and Europe. Analysts have noted the company’s efforts in commercialization and strategic partnerships, which could impact future growth. Nano X is focusing on increasing its client base for AI solutions and continuing the FDA clearance process for new systems. The company’s cash and equivalents stood at $83.5 million at the end of the quarter.
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