Tempus AI (NASDAQ:TEM) Issues Earnings Results

Key Points

• Tempus AI beat quarterly expectations: The company reported an adjusted loss of $0.04 per share, better than the expected $0.14 loss, while revenue reached $382.49 million versus the $379.69 million consensus estimate.
• Shares rose 6.6% to $44.29 following the results, though the stock remains well below its 52-week high of $104.32 and has negative profitability metrics, including a 22.20% net margin.
• Analyst sentiment is mixed: Nine analysts rate the stock a Buy, five a Hold and two a Sell, resulting in a consensus Hold rating and an average price target of $68.92. Insiders have sold approximately $23.25 million of shares over the past 90 days.

Tempus AI (NASDAQ:TEM - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.04) earnings per share for the quarter, beating analysts' consensus estimates of ($0.14) by $0.10, FiscalAI reports. Tempus AI had a negative net margin of 22.20% and a negative return on equity of 53.83%. The business had revenue of $382.49 million during the quarter, compared to analyst estimates of $379.69 million.

Tempus AI Trading Up 6.6%

TEM stock traded up $2.74 during midday trading on Thursday, hitting $44.29. 7,303,011 shares of the company's stock were exchanged, compared to its average volume of 5,879,973. Tempus AI has a one year low of $40.77 and a one year high of $104.32. The company has a debt-to-equity ratio of 2.96, a quick ratio of 3.15 and a current ratio of 3.31. The company has a market cap of $7.95 billion, a PE ratio of -25.75 and a beta of 3.46. The stock's fifty day moving average price is $51.49 and its 200-day moving average price is $52.92.

Analyst Ratings Changes

Several research firms have recently commented on TEM. Guggenheim lifted their target price on Tempus AI from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, July 16th. Weiss Ratings reissued a "sell (e+)" rating on shares of Tempus AI in a report on Wednesday, June 17th. BTIG Research restated a "buy" rating and set a $80.00 target price on shares of Tempus AI in a research report on Monday, June 1st. Lake Street Capital cut shares of Tempus AI to a "hold" rating in a research report on Monday, July 20th. Finally, Wolfe Research assumed coverage on shares of Tempus AI in a research note on Tuesday, June 2nd. They issued a "peer perform" rating on the stock. Nine analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Tempus AI currently has a consensus rating of "Hold" and an average price target of $68.92.

Insider Activity at Tempus AI

In related news, CAO Ryan M. Bartolucci sold 4,116 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total value of $181,392.12. Following the completion of the transaction, the chief accounting officer directly owned 74,041 shares in the company, valued at approximately $3,262,986.87. The trade was a 5.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jennifer A. Doudna sold 2,673 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $55.00, for a total value of $147,015.00. Following the sale, the director directly owned 25,942 shares of the company's stock, valued at approximately $1,426,810. The trade was a 9.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 449,793 shares of company stock valued at $23,248,231 over the last 90 days. Insiders own 24.26% of the company's stock.

Institutional Trading of Tempus AI

Hedge funds and other institutional investors have recently modified their holdings of the company. Maryland State Retirement & Pension System raised its position in Tempus AI by 19.5% in the 4th quarter. Maryland State Retirement & Pension System now owns 4,906 shares of the company's stock valued at $290,000 after buying an additional 800 shares during the last quarter. Empowered Funds LLC acquired a new stake in shares of Tempus AI in the fourth quarter valued at approximately $231,000. Integrated Wealth Concepts LLC acquired a new position in Tempus AI during the third quarter worth $223,000. Hilltop Holdings Inc. bought a new position in Tempus AI in the fourth quarter valued at $216,000. Finally, Rhumbline Advisers bought a new position in Tempus AI in the first quarter valued at $116,000. Institutional investors and hedge funds own 24.22% of the company's stock.

About Tempus AI

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.

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