On Thursday, Cantor Fitzgerald reaffirmed its Overweight rating on Nano-X Imaging (NASDAQ:NNOX) but reduced its price target to $11 from the previous $14. This adjustment followed the company's announcement of its third-quarter 2024 operating results and corporate updates. Nano-X Imaging reported a revenue of $3.0 million, which marks a year-over-year increase of approximately 32%.
This figure fell short of Cantor Fitzgerald's projection of $3.3 million and the FactSet consensus estimate of $3.9 million. According to InvestingPro data, the company's trailing twelve-month revenue stands at $10.68 million, with a challenging gross profit margin of -88.34%. InvestingPro subscribers have access to 7 additional key insights about NNOX's financial health and market position.
The revenue for the quarter was primarily generated by Nano-X's teleradiology services, which saw an 18% increase from the previous year, contributing $2.6 million. The company's artificial intelligence solutions also showed significant growth, with a 184% rise year-over-year, adding $0.4 million to the total revenue.
Furthermore, Nano-X earned $29 thousand from the sales and deployment of its imaging systems, including ARC deployments in the United States and 2D systems in Africa. With a current ratio of 4.64, the company maintains strong liquidity to support its growth initiatives.
During the earnings call, Nano-X highlighted that they currently have around 47 systems across the United States in various stages of deployment. They also mentioned a substantial backlog of approximately 200 systems. With the ongoing ramp-up of U.S. deployments and the potential for an expanded indication for general scans, which could notably broaden the company's market opportunity, and a next-generation device in development, Cantor Fitzgerald reiterated its positive stance on the stock.
InvestingPro analysis suggests the stock is currently undervalued, though investors should note its high volatility with a beta of 2.01. For comprehensive insights and detailed valuation analysis, access the full Pro Research Report available on InvestingPro.
In other recent news, Nano-X Imaging reported its third-quarter financial results, revealing a GAAP net loss of $13.6 million, offset by an increase in revenue to $3 million. The revenue was primarily driven by the company's teleradiology services and artificial intelligence solutions, which saw significant year-over-year growth. Cantor Fitzgerald adjusted its price target for Nano-X, reducing it while maintaining an Overweight rating, following the financial report.
The company is making strides in deploying its imaging systems, with about 47 systems in various stages of deployment in the United States and a substantial backlog of approximately 200 systems awaiting deployment. The deployment of these systems is anticipated to expand Nano-X's market opportunity significantly.
In the light of recent developments, Nano-X is expecting to achieve important milestones in 2025, including chest and full-body indication approvals, CE Mark, and the ArQX launch. The company's cash position remains robust with $57.1 million in cash and equivalents.
Despite the recent adjustments to the company's short-term financial expectations, Cantor Fitzgerald's Overweight rating reaffirms the firm's confidence in the long-term potential of Nano-X Imaging.
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