Tempus AI (NASDAQ:TEM) Releases Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Tempus AI reported a loss of ($0.31) EPS for the quarter, falling short of analysts' estimates by $0.15.
• Following the earnings report, the stock declined by 4.8%, trading around $84.49 per share.
• Several brokerages have upgraded their price targets for the stock, with BTIG Research setting a new target of $96.00.

Tempus AI (NASDAQ:TEM - Get Free Report) released its earnings results on Tuesday. The company reported ($0.11) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.05, Briefing.com reports. Tempus AI had a negative net margin of 20.98% and a negative return on equity of 122.86%. The company had revenue of $334.21 million for the quarter, compared to the consensus estimate of $328.89 million. During the same quarter in the previous year, the company earned ($0.46) EPS. Tempus AI's quarterly revenue was up 84.7% compared to the same quarter last year. Tempus AI updated its FY 2025 guidance to EPS.

Tempus AI Trading Down 4.8%

Shares of TEM opened at $84.49 on Wednesday. The firm's 50 day simple moving average is $85.84 and its 200 day simple moving average is $70.52. The company has a market capitalization of $14.68 billion, a P/E ratio of -71.00 and a beta of 4.86. The company has a debt-to-equity ratio of 2.58, a current ratio of 1.54 and a quick ratio of 1.43. Tempus AI has a 1-year low of $31.36 and a 1-year high of $104.32.

Insiders Place Their Bets

In related news, CAO Ryan M. Bartolucci sold 1,904 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $74.65, for a total value of $142,133.60. Following the sale, the chief accounting officer directly owned 45,895 shares of the company's stock, valued at $3,426,061.75. This trade represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO James William Rogers sold 7,528 shares of Tempus AI stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $74.65, for a total transaction of $561,965.20. Following the transaction, the chief financial officer directly owned 138,473 shares in the company, valued at $10,337,009.45. This trade represents a 5.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,099,912 shares of company stock valued at $87,247,931 over the last three months. Corporate insiders own 26.27% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in TEM. EverSource Wealth Advisors LLC increased its stake in shares of Tempus AI by 88.8% in the second quarter. EverSource Wealth Advisors LLC now owns 691 shares of the company's stock worth $44,000 after buying an additional 325 shares during the period. Rhumbline Advisers purchased a new position in shares of Tempus AI in the first quarter worth $116,000. Prudential Financial Inc. purchased a new position in shares of Tempus AI in the second quarter worth $276,000. Sugar Maple Asset Management LLC purchased a new position in shares of Tempus AI in the second quarter worth $286,000. Finally, Pitcairn Co. purchased a new position in shares of Tempus AI in the second quarter worth $317,000. 24.22% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

TEM has been the topic of a number of research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Tempus AI in a research report on Wednesday, October 8th. Piper Sandler increased their target price on shares of Tempus AI from $70.00 to $105.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 22nd. TD Cowen downgraded shares of Tempus AI from a "buy" rating to a "hold" rating and set a $88.00 price target on the stock. in a report on Tuesday, October 21st. Canaccord Genuity Group assumed coverage on shares of Tempus AI in a report on Monday, October 20th. They issued a "buy" rating and a $110.00 price target on the stock. Finally, Guggenheim increased their price target on shares of Tempus AI from $80.00 to $95.00 and gave the stock a "buy" rating in a report on Friday, September 26th. Seven investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $79.38.

Tempus AI Company Profile

Tempus AI Inc is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics.