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Omnicell (OMCL) Down 1% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Omnicell (OMCL - Free Report) . Shares have lost about 1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Omnicell due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Omnicell Q2 Earnings Top, Gross Margin Expands
Omnicell reported third-quarter 2021 adjusted earnings per share of $1.08, up 80% year over year. The metric also beat the Zacks Consensus Estimate by 18.7%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, severance-related and other expenses.
On a GAAP basis, earnings per share were 61 cents for the quarter under review, reflecting an improvement from net loss per share of 20 cents in the year-ago quarter.
Revenues in Detail
Third-quarter revenues of $296.5 million rose 38.7% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 4.4%.
Segmental Details
On a segmental basis, Product revenues rose 41.4% year over year to $213.9 million in the reported quarter.
Service and other revenues climbed 32.2% year over year to $82.4 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 50.6% to $151.0035 million. The company-adjusted gross margin expanded 400 basis points (bps) to 51.1%.
Company-adjusted operating profit in the third quarter totaled $54.2 million, up 88.2% year over year. The company adjusted operating margin of 18.3% represented a 480 bps of year-over-year expansion.
Financial Update
Omnicell exited the third quarter with cash and cash equivalents of $481.6 compared with $614.2 million at the end of second-quarter 2021.
Cumulative cash flow from operating activities at the end of the reported quarter was $172.3 million compared with $109.4 million a year ago.
Guidance for Q4 & 2021
For the fourth quarter of 2021, Omnicell expects revenues between $308 million and $313 million. The Zacks Consensus Estimate for the metric is pegged at $283.8 million. Product revenues are forecast between $219 million and $222 million, while service revenues are projected within $89 million and $91 million for the quarter.
Fourth-quarter adjusted earnings per share is envisioned in the band of 90-95 cents. The Zacks Consensus Estimate for the same is pegged at 91 cents.
For the full year, the company upped its product bookings guidance to the range of $1.13 billion to $1.17 billion, from the July-announced band of $1.11 billion to $1.15 billion.
Revenues are estimated between $1.129 billion and $1.134 billion, suggesting an improvement from the previously estimated $1.10 billion and $1.11 billion. The Zacks Consensus Estimate for the same stands at $1.11 billion.
Full-year adjusted earnings per share is expected between $3.80 and $3.85 (an improvement from the earlier-provided view of $3.65 to $3.75). The Zacks Consensus Estimate for the metric stands at $3.71.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Omnicell has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Omnicell has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Omnicell (OMCL) Down 1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Omnicell (OMCL - Free Report) . Shares have lost about 1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Omnicell due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Omnicell Q2 Earnings Top, Gross Margin Expands
Omnicell reported third-quarter 2021 adjusted earnings per share of $1.08, up 80% year over year. The metric also beat the Zacks Consensus Estimate by 18.7%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, severance-related and other expenses.
On a GAAP basis, earnings per share were 61 cents for the quarter under review, reflecting an improvement from net loss per share of 20 cents in the year-ago quarter.
Revenues in Detail
Third-quarter revenues of $296.5 million rose 38.7% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 4.4%.
Segmental Details
On a segmental basis, Product revenues rose 41.4% year over year to $213.9 million in the reported quarter.
Service and other revenues climbed 32.2% year over year to $82.4 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 50.6% to $151.0035 million. The company-adjusted gross margin expanded 400 basis points (bps) to 51.1%.
Company-adjusted operating profit in the third quarter totaled $54.2 million, up 88.2% year over year. The company adjusted operating margin of 18.3% represented a 480 bps of year-over-year expansion.
Financial Update
Omnicell exited the third quarter with cash and cash equivalents of $481.6 compared with $614.2 million at the end of second-quarter 2021.
Cumulative cash flow from operating activities at the end of the reported quarter was $172.3 million compared with $109.4 million a year ago.
Guidance for Q4 & 2021
For the fourth quarter of 2021, Omnicell expects revenues between $308 million and $313 million. The Zacks Consensus Estimate for the metric is pegged at $283.8 million. Product revenues are forecast between $219 million and $222 million, while service revenues are projected within $89 million and $91 million for the quarter.
Fourth-quarter adjusted earnings per share is envisioned in the band of 90-95 cents. The Zacks Consensus Estimate for the same is pegged at 91 cents.
For the full year, the company upped its product bookings guidance to the range of $1.13 billion to $1.17 billion, from the July-announced band of $1.11 billion to $1.15 billion.
Revenues are estimated between $1.129 billion and $1.134 billion, suggesting an improvement from the previously estimated $1.10 billion and $1.11 billion. The Zacks Consensus Estimate for the same stands at $1.11 billion.
Full-year adjusted earnings per share is expected between $3.80 and $3.85 (an improvement from the earlier-provided view of $3.65 to $3.75). The Zacks Consensus Estimate for the metric stands at $3.71.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Omnicell has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Omnicell has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.