Tempus AI's stock experienced a notable decline in after-hours trading, despite the healthcare technology company announcing robust third-quarter financial results that surpassed market predictions. The unexpected dip has drawn attention to the company's performance and future outlook, as investors weigh impressive growth against immediate market reactions.
On Tuesday, shares of Tempus AI (TEM) fell by 6.02%, closing at $79.40 in extended trading. This downturn followed the release of its third-quarter earnings report. Despite the stock's overnight slide, the company's financial disclosures painted a picture of significant operational success.
Tempus AI reported revenues totaling $334.21 million for the quarter, considerably exceeding analysts' consensus estimate of $328.73 million. This revenue figure represents a substantial 84.7% increase compared to the same period last year, highlighting the company's rapid expansion in the healthcare technology sector. Furthermore, the company reported an adjusted loss per share of 11 cents, which was better than the projected loss of 17 cents. This indicates improved efficiency and financial management. A significant turnaround was also observed in the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which moved from a $21.8 million loss in the previous year to a positive $1.5 million in the current quarter.
Looking ahead, Tempus AI has demonstrated strong confidence in its future performance by raising its full-year revenue guidance for fiscal year 2025. The company now anticipates full-year revenues to reach $1.265 billion, signifying an impressive 80% growth rate. Additionally, Tempus AI expects to achieve slightly positive adjusted EBITDA for the full fiscal year. Based in Illinois, the company's stock has seen a substantial year-to-date gain of 146.69%, though it has slightly retreated by 9.23% over the past month. With a 52-week trading range between $31.36 and $104.32, Tempus AI commands a market capitalization of $14.68 billion. The company's strong Momentum ranking, placing it in the 90th percentile according to Benzinga's Edge Stock Rankings, suggests a favorable price trend across various timeframes.
The recent dip in Tempus AI's stock price, despite a strong earnings report and an optimistic outlook, could be a result of various market dynamics, including profit-taking or broader sector movements. Nevertheless, the company's fundamental performance metrics and updated guidance underscore its robust growth trajectory and promising position within the evolving healthcare technology landscape.