We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Omnicell, Inc. (OMCL - Free Report) first-quarter 2020 adjusted earnings per share (EPS) were 66 cents, up 8.2% year over year. The metric exceeded the Zacks Consensus Estimate by 22.2%.
On a GAAP (reported) basis, EPS was 26 cents for the quarter under review, reflecting a stupendous rise from 8 cents in the year-aqo quarter.
Revenues in Detail
First-quarter revenues of $229.7 million increased 13.4% year over year on a reported basis (same on an adjusted basis). The figure beat the Zacks Consensus Estimate by 1.6%.
Segmental Details
On a segmental basis, Product revenues improved 16.8% year over year to $170.1 million in the reported quarter.
Service and other revenues climbed 4.8% year over year to $59.6 million.
With regard to COVID-19 impact on the company’s business, Omnicell noted that during the second half of March 2020, it started to see a slowdown in product bookings. With respect to bookings for new sales, beginning the second half of March, the company started witnessing slowdown in hospital purchasing decisions.
Operational Update
In the quarter under review, Omnicell's adjusted gross profit rose 12.8% to $113.5 million. However, adjusted gross margin contracted 30 basis points (bps) to 49.4%.
Adjusted operating expenses were $82.2 million in the first quarter, up 10.5% year over year. Adjusted operating profit totaled $31.3 million, reflecting a 19.5% increase from the prior-year quarter. Adjusted operating margin in the first quarter expanded 60 bps to 13.6%.
Financial Update
Omnicell exited the first quarter with cash and cash equivalents of $337.1 million compared with $345.6 million at the end of 2019.
At the end of the first quarter, cash flow from operating activities was $25.2 million compared with $26.5 million a year ago.
Guidance
Omnicell is currently unable to gauge the scope, duration, and impact of the pandemic and is also uncertain about the timing of global recovery and economic normalization. This has compelled the company to withdraw its previously issued 2020 guidance.
Our Take
Omnicell exited the first quarter with better-than-expected results. The top line registered strong year-over-year growth and the company continued to see solid segmental contributions. Expansion of margins in the reported quarter was encouraging as well.
However, the company noted that since the second half of March till the time of the earnings call, it witnessed significantly lower product bookings as well as slowdown in purchasing decisions by hospitals. Additionally, through the second quarter, the company’s scope to access hospitals in order to implement capital equipment will likely be delayed in many cases, as many hospitals are used for treating coronavirus patients. Overall, the company noted that its bookings are behind the internal estimates as of now.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria carries a Zacks Rank #2 (Buy). It reported third-quarter fiscal 2020 adjusted earnings per share (EPS) of 2 cents in contrast to the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly sports a Zacks Rank #1. It delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Omnicell (OMCL) Q1 Earnings Top, Operating Margin Rises
Omnicell, Inc. (OMCL - Free Report) first-quarter 2020 adjusted earnings per share (EPS) were 66 cents, up 8.2% year over year. The metric exceeded the Zacks Consensus Estimate by 22.2%.
On a GAAP (reported) basis, EPS was 26 cents for the quarter under review, reflecting a stupendous rise from 8 cents in the year-aqo quarter.
Revenues in Detail
First-quarter revenues of $229.7 million increased 13.4% year over year on a reported basis (same on an adjusted basis). The figure beat the Zacks Consensus Estimate by 1.6%.
Segmental Details
On a segmental basis, Product revenues improved 16.8% year over year to $170.1 million in the reported quarter.
Service and other revenues climbed 4.8% year over year to $59.6 million.
Omnicell Inc Price, Consensus and EPS Surprise
Omnicell Inc price-consensus-eps-surprise-chart | Omnicell Inc Quote
With regard to COVID-19 impact on the company’s business, Omnicell noted that during the second half of March 2020, it started to see a slowdown in product bookings. With respect to bookings for new sales, beginning the second half of March, the company started witnessing slowdown in hospital purchasing decisions.
Operational Update
In the quarter under review, Omnicell's adjusted gross profit rose 12.8% to $113.5 million. However, adjusted gross margin contracted 30 basis points (bps) to 49.4%.
Adjusted operating expenses were $82.2 million in the first quarter, up 10.5% year over year. Adjusted operating profit totaled $31.3 million, reflecting a 19.5% increase from the prior-year quarter. Adjusted operating margin in the first quarter expanded 60 bps to 13.6%.
Financial Update
Omnicell exited the first quarter with cash and cash equivalents of $337.1 million compared with $345.6 million at the end of 2019.
At the end of the first quarter, cash flow from operating activities was $25.2 million compared with $26.5 million a year ago.
Guidance
Omnicell is currently unable to gauge the scope, duration, and impact of the pandemic and is also uncertain about the timing of global recovery and economic normalization. This has compelled the company to withdraw its previously issued 2020 guidance.
Our Take
Omnicell exited the first quarter with better-than-expected results. The top line registered strong year-over-year growth and the company continued to see solid segmental contributions. Expansion of margins in the reported quarter was encouraging as well.
However, the company noted that since the second half of March till the time of the earnings call, it witnessed significantly lower product bookings as well as slowdown in purchasing decisions by hospitals. Additionally, through the second quarter, the company’s scope to access hospitals in order to implement capital equipment will likely be delayed in many cases, as many hospitals are used for treating coronavirus patients. Overall, the company noted that its bookings are behind the internal estimates as of now.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria carries a Zacks Rank #2 (Buy). It reported third-quarter fiscal 2020 adjusted earnings per share (EPS) of 2 cents in contrast to the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly sports a Zacks Rank #1. It delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>