On Monday, investors showed a lack of confidence in Nano-X Imaging (NNOX), known as Nanox, as its stock experienced a decline following the release of its latest earnings report. By the end of the trading day, Nanox’s stock had decreased by nearly 5%, contrasting sharply with the S&P 500’s 0.6% increase.
Fourth-quarter results published
Before the market opened, Nanox released its fourth-quarter financial results, revealing $3 million in revenue, an improvement from the $2.4 million recorded during the same period in the previous year. However, the healthcare company’s net loss widened, reaching $14.1 million ($0.23 per share), compared to a loss of $10.2 million a year earlier.
Although few analysts cover Nanox, data from The Wall Street Journal indicated that collectively they expected a slightly narrower net loss of $0.22 per share. Nanox attributed its greater net loss to a one-time $3 million income item recorded in the third quarter. Despite the increase in losses, Nanox highlighted positive news in its earnings announcement, detailing two recent regulatory approvals.
The first approval in December came from the Food and Drug Administration (FDA) for Nanox.ARC, intended for general use. The second was a CE mark granted this past February for the same system, a necessary quality designation for selling products in most European markets.
Holding steady
In addition, Nanox reported a favorable development regarding its cash position. By year-end, the company had cash, equivalents, and other liquid assets amounting to $83.5 million, slightly higher than the $82.8 million at the end of 2023. This suggests effective management of financial resources by the company.
