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Why Is Inogen (INGN) Up 3.9% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Inogen, Inc. (INGN - Free Report) . Shares have added about 3.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Inogen reported fourth-quarter 2016 earnings of $0.25 per share, which surpassed both the Zacks Consensus Estimate by $0.15 and the year-ago figure by $0.11.
The upside was driven by roughly 27.5% growth in revenues, which totaled $51 million, beating the Zacks Consensus Estimate of $46.0 million.
For full-year 2016, the company registered total revenue of $202.8 million, up 27.6% on a year-over-year basis.
Segment Details
Sales revenue surged 47.2% to $42.6 million, while rental revenues plunged 28.3% to $8.2 million.
Business-to-business domestic sales were up 69% on a year-over-year basis to almost $15 million, primarily driven by traditional home medical equipment provider purchases and the consistent strength of the private label partner.
Meanwhile, business-to-business International sales rose around 42.2% to almost $12 million, on the back of robust performance in Europe.
Direct-to-consumer domestic sales advanced 34.2% to $15.6 million and direct-to-consumer rental sales fell 28.3% to $8.2 million. Unit sales in the quarter surged 60.7% on a year-over-year basis to 23,300 units. Rental patient population inched up 1.5% to 33,300.
Margin Details
In the reported quarter, Inogen registered gross margin of 48.5% as a percentage of revenues, compared to 49.5% reported in the year-ago quarter.
Meanwhile, sales gross margin expanded 190 basis points (bps) in the quarter to 49.9%, as a percentage of revenues. Per management, an increase in sales gross margin was fueled by lower cost of goods sold in the company’s flagship – Inogen One G3 and the Inogen One G4 platforms.
Rental gross margin contracted 128 bps and accounted for 41.4% of revenues in the fourth quarter.
Adjusted EBITDA rose 34.4% to $10.9 million on a year-over-year basis.
Guidance
Inogen revised its outlook for full-year 2017. The company now projects revenues in the range of $233–$239 million, better than the previous range of $230–$236 million. This represents year-over-year growth of 14.9%–17.8%.
The company raised its 2017 adjusted net income projection to $21–$23 million, compared to the previous guidance range of $16–$18 million. This represents 2.3%–12.1% year-over-year growth.
Adjusted EBITDA is expected in the band of $46–$50 million, representing an increase of 6%–15.2% year over year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three upward revisions for the current quarter In the past month, the consensus estimate also shifted upward by 25.1% due to these changes.
At this time, Inogen's stock has a strong Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest 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.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #1 (Strong Buy). We are expecting an above average return from the stock in the next few months.
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Why Is Inogen (INGN) Up 3.9% Since the Last Earnings Report?
A month has gone by since the last earnings report for Inogen, Inc. (INGN - Free Report) . Shares have added about 3.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
Inogen reported fourth-quarter 2016 earnings of $0.25 per share, which surpassed both the Zacks Consensus Estimate by $0.15 and the year-ago figure by $0.11.
The upside was driven by roughly 27.5% growth in revenues, which totaled $51 million, beating the Zacks Consensus Estimate of $46.0 million.
For full-year 2016, the company registered total revenue of $202.8 million, up 27.6% on a year-over-year basis.
Segment Details
Sales revenue surged 47.2% to $42.6 million, while rental revenues plunged 28.3% to $8.2 million.
Business-to-business domestic sales were up 69% on a year-over-year basis to almost $15 million, primarily driven by traditional home medical equipment provider purchases and the consistent strength of the private label partner.
Meanwhile, business-to-business International sales rose around 42.2% to almost $12 million, on the back of robust performance in Europe.
Direct-to-consumer domestic sales advanced 34.2% to $15.6 million and direct-to-consumer rental sales fell 28.3% to $8.2 million. Unit sales in the quarter surged 60.7% on a year-over-year basis to 23,300 units. Rental patient population inched up 1.5% to 33,300.
Margin Details
In the reported quarter, Inogen registered gross margin of 48.5% as a percentage of revenues, compared to 49.5% reported in the year-ago quarter.
Meanwhile, sales gross margin expanded 190 basis points (bps) in the quarter to 49.9%, as a percentage of revenues. Per management, an increase in sales gross margin was fueled by lower cost of goods sold in the company’s flagship – Inogen One G3 and the Inogen One G4 platforms.
Rental gross margin contracted 128 bps and accounted for 41.4% of revenues in the fourth quarter.
Adjusted EBITDA rose 34.4% to $10.9 million on a year-over-year basis.
Guidance
Inogen revised its outlook for full-year 2017. The company now projects revenues in the range of $233–$239 million, better than the previous range of $230–$236 million. This represents year-over-year growth of 14.9%–17.8%.
The company raised its 2017 adjusted net income projection to $21–$23 million, compared to the previous guidance range of $16–$18 million. This represents 2.3%–12.1% year-over-year growth.
Adjusted EBITDA is expected in the band of $46–$50 million, representing an increase of 6%–15.2% year over year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three upward revisions for the current quarter In the past month, the consensus estimate also shifted upward by 25.1% due to these changes.
Inogen, Inc Price and Consensus
Inogen, Inc Price and Consensus | Inogen, Inc Quote
VGM Scores
At this time, Inogen's stock has a strong Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest 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.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #1 (Strong Buy). We are expecting an above average return from the stock in the next few months.