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Inogen (INGN) Q1 Earnings Top Estimates, Revenues Up Y/Y
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Inogen, Inc. (INGN - Free Report) incurred an adjusted loss per share of 45 cents for first-quarter 2024, which was narrower than the adjusted loss per share of 63 cents in the year-ago period. The Zacks Consensus Estimate was pegged at a loss of 76 cents per share.
GAAP loss per share for the quarter was 62 cents, narrower than the year-earlier loss of 88 cents per share.
Revenues in Detail
Inogen registered revenues of $78 million for the first quarter, up 8.1% year over year. The figure surpassed the Zacks Consensus Estimate by 6.5%.
At constant exchange rate (CER), total revenues for the reported quarter increased 7.6%.
Per management, the year-over-year uptick in the top line was primarily driven by higher international and domestic business-to-business sales. However, this was partially offset by lower direct-to-consumer sales and rental revenues.
Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $14.9 million, down 8.3% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from a higher mix of lower private payer reimbursement rates and higher rental revenue adjustments.
Sales revenues were $63.1 million, down 12.9% from the prior-year quarter.
Revenues by Region & Category
Domestic business-to-business sales for first-quarter 2024 amounted to $16.5 million, up 31.3% on a year-over-year basis.
International business-to-business sales for the reported quarter amounted to $26 million, up 37.2% year over year on a reported basis and up 35.4% at CER.
Domestic direct-to-consumer sales decreased 15.6% year over year to $20.5 million for the quarter.
For the quarter under review, Inogen’s adjusted gross profit rose 11.1% from the year-ago period to $37.6 million. The adjusted gross margin expanded 127 basis points to 48.1%.
Sales and marketing expenses decreased 5.3% from the year-ago quarter to $26.9 million. Research and development expenses increased 23.1% year over year to $6.6 million, while general and administrative expenses decreased 9.2% to $17.1 million. Adjusted operating expenses of $50.6 million decreased 3.8% year over year.
Adjusted operating loss totaled $13.1 million compared with the prior-year quarter’s $18.8 million.
Financial Position
Inogen exited first-quarter 2024 with cash and cash equivalents of $107.4 million compared with $125.5 million at 2023-end.
The company ended the quarter with no debt on its balance sheet.
Net cash used in operating activities at the end of first-quarter 2024 was $4.7 million compared with $6.3 million a year ago.
Guidance
Inogen has provided its revenue outlook for the second quarter of 2024.
The company expects the metric to lie between $81 million and $84 million. The Zacks Consensus Estimate currently stands at $82.8 million.
Our Take
Inogen exited the first quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.
On the earnings call, management confirmed its decision to target hospitals in addition to individual practitioners through its rental business. By expanding its scale, efficiency and throughput in the rental channel, Inogen anticipates driving higher profitability over time. The company is also seeing cost benefits in the form of lower sales and marketing expenses on the back of the recent exit of its third-party relationship in the rental channel. These look promising for the stock.
Yet, a decline in domestic direct-to-consumer sales and rental revenues was concerning. Inogen continued to incur operating losses for the first quarter, which did not bode well.
Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted earnings per share (EPS) of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
ResMed reported third-quarter fiscal 2024 adjusted EPS of $2.13, beating the Zacks Consensus Estimate by 10.9%. Revenues of $1.19 billion surpassed the Zacks Consensus Estimate by 1.9%. It currently sports a Zacks Rank #1.
ResMed has a long-term estimated growth rate of 10.7%. RMD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.
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Inogen (INGN) Q1 Earnings Top Estimates, Revenues Up Y/Y
Inogen, Inc. (INGN - Free Report) incurred an adjusted loss per share of 45 cents for first-quarter 2024, which was narrower than the adjusted loss per share of 63 cents in the year-ago period. The Zacks Consensus Estimate was pegged at a loss of 76 cents per share.
GAAP loss per share for the quarter was 62 cents, narrower than the year-earlier loss of 88 cents per share.
Revenues in Detail
Inogen registered revenues of $78 million for the first quarter, up 8.1% year over year. The figure surpassed the Zacks Consensus Estimate by 6.5%.
At constant exchange rate (CER), total revenues for the reported quarter increased 7.6%.
Per management, the year-over-year uptick in the top line was primarily driven by higher international and domestic business-to-business sales. However, this was partially offset by lower direct-to-consumer sales and rental revenues.
Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $14.9 million, down 8.3% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from a higher mix of lower private payer reimbursement rates and higher rental revenue adjustments.
Sales revenues were $63.1 million, down 12.9% from the prior-year quarter.
Revenues by Region & Category
Domestic business-to-business sales for first-quarter 2024 amounted to $16.5 million, up 31.3% on a year-over-year basis.
International business-to-business sales for the reported quarter amounted to $26 million, up 37.2% year over year on a reported basis and up 35.4% at CER.
Domestic direct-to-consumer sales decreased 15.6% year over year to $20.5 million for the quarter.
Inogen, Inc Price, Consensus and EPS Surprise
Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote
Margins
For the quarter under review, Inogen’s adjusted gross profit rose 11.1% from the year-ago period to $37.6 million. The adjusted gross margin expanded 127 basis points to 48.1%.
Sales and marketing expenses decreased 5.3% from the year-ago quarter to $26.9 million. Research and development expenses increased 23.1% year over year to $6.6 million, while general and administrative expenses decreased 9.2% to $17.1 million. Adjusted operating expenses of $50.6 million decreased 3.8% year over year.
Adjusted operating loss totaled $13.1 million compared with the prior-year quarter’s $18.8 million.
Financial Position
Inogen exited first-quarter 2024 with cash and cash equivalents of $107.4 million compared with $125.5 million at 2023-end.
The company ended the quarter with no debt on its balance sheet.
Net cash used in operating activities at the end of first-quarter 2024 was $4.7 million compared with $6.3 million a year ago.
Guidance
Inogen has provided its revenue outlook for the second quarter of 2024.
The company expects the metric to lie between $81 million and $84 million. The Zacks Consensus Estimate currently stands at $82.8 million.
Our Take
Inogen exited the first quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.
On the earnings call, management confirmed its decision to target hospitals in addition to individual practitioners through its rental business. By expanding its scale, efficiency and throughput in the rental channel, Inogen anticipates driving higher profitability over time. The company is also seeing cost benefits in the form of lower sales and marketing expenses on the back of the recent exit of its third-party relationship in the rental channel. These look promising for the stock.
Yet, a decline in domestic direct-to-consumer sales and rental revenues was concerning. Inogen continued to incur operating losses for the first quarter, which did not bode well.
Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , ResMed Inc. (RMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted earnings per share (EPS) of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
ResMed reported third-quarter fiscal 2024 adjusted EPS of $2.13, beating the Zacks Consensus Estimate by 10.9%. Revenues of $1.19 billion surpassed the Zacks Consensus Estimate by 1.9%. It currently sports a Zacks Rank #1.
ResMed has a long-term estimated growth rate of 10.7%. RMD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.