On Tuesday, Cantor Fitzgerald reaffirmed its positive stance on Nano-X Imaging (NASDAQ:NNOX), maintaining an Overweight rating and a $18.00 price target. The company recently disclosed its fourth-quarter earnings for 2023, reporting revenues of $2.4 million, which reflected an approximate 12% year-over-year growth. This figure fell slightly short of both Cantor's and FactSet consensus estimates of $2.8 million.
Nano-X's revenue for the quarter was primarily fueled by its teleradiology services, which saw a growth of around 10% to $2.3 million. Additionally, the company's artificial intelligence solutions witnessed a significant increase of about 33% year-over-year, contributing $84 thousand to the total revenue. The firm also generated $17 thousand from the sales and deployment of its imaging systems, with a notable focus on installations in Africa.
The company has expanded its reach within the United States, successfully deploying systems across five states and beginning to generate domestic revenue. Nano-X has indicated that it plans to continue its controlled launch strategy, anticipating a steady pace of system deployments moving forward.
Progress towards regulatory approval in Europe is also on track, with Nano-X recently completing a five-day audit essential for obtaining the CE Mark approval. Furthermore, the company is actively collecting full-body scans outside the United States to support a 510k application. This application is aimed at expanding the indication for full-body scans within the U.S. market, positioning the company's imaging technology as a standalone offering.
"We are excited to see commercial activities beginning in the U.S., and look to learn feedback from domestic users in the coming quarters, in addition to the company," said the analysts.
InvestingPro Insights
Nano-X Imaging (NASDAQ:NNOX) shows a dynamic financial landscape, with InvestingPro data highlighting a market capitalization of $596.38 million. Despite a challenging gross profit margin of -66.55% for the last twelve months as of Q4 2023, the company has demonstrated a robust one-year price total return of 79.03%, indicating investor confidence in its growth potential. Additionally, with a revenue growth of 15.47% in the same period, Nano-X's financial performance suggests a trajectory of expansion which aligns with the positive outlook from analysts.
InvestingPro Tips for Nano-X Imaging reveal a mix of operational strengths and challenges. The company holds more cash than debt on its balance sheet, and analysts anticipate both net income and sales growth in the current year. These insights, coupled with the company's significant returns over the last week, three months, and year, paint a picture of a potentially promising investment. However, it's important to note that Nano-X has not been profitable over the last twelve months and is trading at a high revenue valuation multiple. For those interested in a deeper dive, there are additional tips available on InvestingPro, including predictions on profitability and sales growth. Use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable insights.
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