The stock of Tempus AI (TEM +1.46%) gave back some of its gains after surging early in Friday's trading, but it still ended the daily session solidly in the green. The healthcare artificial intelligence (AI) company's share price ended Friday's trading up 3.6% but had been up 11.9% earlier in the session.
Tempus AI delivered its second-quarter report before the market opened this morning, and sales and earnings for the period topped Wall Street's expectations. In addition to performance beats in the quarter, the company raised its full-year sales guidance.
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Tempus AI stock rose on the strength of Q2 sales momentum
The company saw an adjusted loss of $0.22 per share on revenue of $314.6 million in the second quarter. The average Wall Street analyst estimate had targeted an adjusted per-share loss of $0.25 on sales of roughly $297.8 million.
Sales increased roughly 90% year over year and far surpassed Wall Street's expectations, with strong momentum for the company's genomics segment powering huge growth. The stock gave back some of its early gains as today's trading progressed, but the healthcare AI software specialist delivered a strong quarterly report.
NASDAQ: TEM
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What's next for Tempus AI?
In conjunction with its better-than-expected sales growth in the second quarter, Tempus AI raised its sales outlook for this year. The company now expects full-year revenue to come in at roughly $1.26 billion, up from its previous target for sales of $1.26 billion. The new target suggests annual sales growth of roughly 86%.
The company also said that it anticipates posting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5 million this year -- representing a $110 million improvement over last year's performance. With strong sales growth and signs of improving margins, Tempus AI could be on track to deliver strong results for long-term shareholders.
