Why Is NeoGenomics (NEO) Stock Down Today?

Cancer-testing company NeoGenomics (NASDAQ:NEO) is in the midst of a brutal pullback today after announcing it will miss guidance. NEO stock is down more than 30% so far on Tuesday.

A variety of pills, pill bottles, and droppers arranged on a table in multiple bright colors.
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So what is going on with NeoGenomics?

Well, on Monday the health-testing company announced it will fail to reach previously issued guidance for the first quarter. The bad news didn’t stop there. Additionally, the company went ahead and rescinded its 2022 forecast alongside news that CEO Mark Mallon will step down from his role. In Mallon’s place, NeoGenomics announced three interim CEOs, all members of the current C-Suite. Lynn Tetrault, who previously served as the chair of the board of directors, will now serve as the executive chair. Tetrault is tasked with leading the board in the search for a new, permanent CEO.

Tetrault commented on Mallon’s departure:

“We thank Mark for his contributions to the company and wish him the best in the future. We are taking immediate steps to improve our business performance.”

What else do you need to know about the latest out of NeoGenomics?

NEO Stock Plummets on Bleak Earnings Update

As per the announcement, the company shared expectations that Q1 revenue will and earnings before interest, taxes, depreciation and amortization (EBITDA) will come in lower than its previously forecast range.

Investors were clearly discouraged by the rapid executive change and disappointing earnings revisions. NeoGenomics has also been on a wild ride in the stock market. From a 52-week high above $50, NEO stock is now trading just above $12. This represents a plunge of nearly 80%.

If the losses hold today, NeoGenomics will set an unfortunate milestone, closing below $14 for the first time since 2018.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/why-is-neogenomics-neo-stock-down-today/.

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