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Omnicell (OMCL) Down 2.8% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Omnicell (OMCL - Free Report) . Shares have lost about 2.8% in that time frame, underperforming 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 Q4 Earnings Top Estimates, Margins Down
Omnicell reported fourth-quarter 2022 adjusted earnings per share of 33 cents, a 64.1% plunge year over year. However, the metric remarkably beat the Zacks Consensus Estimate by 266.7%.
The adjustments include one-time expenses like share-based compensations, the amortization of acquired intangibles, acquisition-related expenses, severance-related expenses and others.
On a GAAP basis, the loss per diluted share was 64 cents in the fourth quarter compared to the earnings per share of 28 cents in the prior-year quarter.
For the full year, adjusted earnings were $3.0 per share, down 21.3% from the year-ago period. This figure exceeded the Zacks Consensus Estimate by 9.5%.
Revenues in Detail
Revenues for the fourth quarter totaled $297.7 million, down 4.3% year over year. The decline was mainly due to macroeconomic uncertainties, freezes and delays in the capital budget of health systems and ongoing customer labor shortages. The figure beat the Zacks Consensus Estimate by 3.9%.
Total revenues for 2022 were $1.29 billion, up 14.5% from the year-ago period. The reported figure was in line with the Zacks Consensus Estimate.
Segmental Details
On a segmental basis, product revenues declined 11.9% year over year to $196.9 million in the reported quarter.
Service and other revenues climbed 15% year over year to $100.7 million.
Operational Update
In the quarter under review, the adjusted gross profit declined 18.4% to $121.8 million. The adjusted gross margin contracted 710 basis points (bps) to 40.9%.
Operating expenses were $160.1 million in the fourth quarter, up 16.3% year over year. The operating loss in the quarter totaled $38.4 million compared to the operating profit of $11.5 million in the year-ago quarter. The adjusted operating margin in the fourth quarter contracted 1661 bps to 12.9%.
Financial Update
Omnicell exited 2022 with cash and cash equivalents of $330.4 million compared with $349.1 million at the end of 2021.
The cumulative cash flow from operating activities at the end of 2022 was $77.8 million compared with $231.8 million a year ago.
2023 Outlook
Omnicell provided its guidance for the full year 2023 and the first quarter. Total revenues for 2023 are expected in the range of $1.15-$1.19 billion, with product revenues in the band of $740-$760 million and service revenues projected in the band of $410-$430 million. The Zacks Consensus Estimate for total revenues is pegged at $1.20 billion.
The adjusted EPS for the full year is expected in the range of $1.55-$1.80 per share. The Zacks Consensus Estimate for the same is pegged at $1.96.
For the first quarter of 2023, Omnicell expects revenues in the range of $273-$283 million, with product revenues expected in the band of $179-$184 million and service revenues in the range of $94-$99 million.
The Zacks Consensus Estimate for the total revenues of the first quarter of 2023 is pegged at $273.86 million.
The adjusted EPS for the first quarter is anticipated in the range of 4-14 cents. The Zacks Consensus Estimate for the same is pegged at 29 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -580% due to these changes.
VGM Scores
At this time, Omnicell has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 #3 (Hold). We expect an in-line return from the stock in the next few months.
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Omnicell (OMCL) Down 2.8% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Omnicell (OMCL - Free Report) . Shares have lost about 2.8% in that time frame, underperforming 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 Q4 Earnings Top Estimates, Margins Down
Omnicell reported fourth-quarter 2022 adjusted earnings per share of 33 cents, a 64.1% plunge year over year. However, the metric remarkably beat the Zacks Consensus Estimate by 266.7%.
The adjustments include one-time expenses like share-based compensations, the amortization of acquired intangibles, acquisition-related expenses, severance-related expenses and others.
On a GAAP basis, the loss per diluted share was 64 cents in the fourth quarter compared to the earnings per share of 28 cents in the prior-year quarter.
For the full year, adjusted earnings were $3.0 per share, down 21.3% from the year-ago period. This figure exceeded the Zacks Consensus Estimate by 9.5%.
Revenues in Detail
Revenues for the fourth quarter totaled $297.7 million, down 4.3% year over year. The decline was mainly due to macroeconomic uncertainties, freezes and delays in the capital budget of health systems and ongoing customer labor shortages. The figure beat the Zacks Consensus Estimate by 3.9%.
Total revenues for 2022 were $1.29 billion, up 14.5% from the year-ago period. The reported figure was in line with the Zacks Consensus Estimate.
Segmental Details
On a segmental basis, product revenues declined 11.9% year over year to $196.9 million in the reported quarter.
Service and other revenues climbed 15% year over year to $100.7 million.
Operational Update
In the quarter under review, the adjusted gross profit declined 18.4% to $121.8 million. The adjusted gross margin contracted 710 basis points (bps) to 40.9%.
Operating expenses were $160.1 million in the fourth quarter, up 16.3% year over year. The operating loss in the quarter totaled $38.4 million compared to the operating profit of $11.5 million in the year-ago quarter. The adjusted operating margin in the fourth quarter contracted 1661 bps to 12.9%.
Financial Update
Omnicell exited 2022 with cash and cash equivalents of $330.4 million compared with $349.1 million at the end of 2021.
The cumulative cash flow from operating activities at the end of 2022 was $77.8 million compared with $231.8 million a year ago.
2023 Outlook
Omnicell provided its guidance for the full year 2023 and the first quarter. Total revenues for 2023 are expected in the range of $1.15-$1.19 billion, with product revenues in the band of $740-$760 million and service revenues projected in the band of $410-$430 million. The Zacks Consensus Estimate for total revenues is pegged at $1.20 billion.
The adjusted EPS for the full year is expected in the range of $1.55-$1.80 per share. The Zacks Consensus Estimate for the same is pegged at $1.96.
For the first quarter of 2023, Omnicell expects revenues in the range of $273-$283 million, with product revenues expected in the band of $179-$184 million and service revenues in the range of $94-$99 million.
The Zacks Consensus Estimate for the total revenues of the first quarter of 2023 is pegged at $273.86 million.
The adjusted EPS for the first quarter is anticipated in the range of 4-14 cents. The Zacks Consensus Estimate for the same is pegged at 29 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -580% due to these changes.
VGM Scores
At this time, Omnicell has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 #3 (Hold). We expect an in-line return from the stock in the next few months.