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 (OMCL) Q1 Earnings Top Estimates, Margins Decline
Read MoreHide Full Article
Omnicell, Inc. (OMCL - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of 83 cents, similar to the year-ago reported quarter. The metric surpassed the Zacks Consensus Estimate by 16.9%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS was 17 cents for the quarter under review, reflecting a 43.3% fall from the EPS of 30 cents in the year-ago quarter.
Revenues in Detail
First-quarter revenues of $318.8 million rose 26.6% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.7%.
Segmental Details
On a segmental basis, Product revenues rose 26.8% year over year to $225.9 million in the reported quarter.
Service and other revenues climbed 26.1% year over year to $92.9 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 22.7% to $150 million. Company-adjusted gross margin contracted 149 basis points (bps) to 47.1%.
Operating expenses were $144.9 million in the first quarter, up 41.2% year over year. Operating profit totaled $5.1 million, reflecting a 74.1% fall from the prior-year quarter. Operating margin in the first quarter contracted 619 bps to 1.6%.
Financial Update
Omnicell exited first-quarter 2022 with cash and cash equivalents of $265 million compared with $349.1 million at the end of 2021.
Cumulative net cash used in operating activities at the end of the first quarter was $15.9 million, compared with a cumulative net cash inflow of $57.4 million in the year-ago quarter.
For the first quarter, the company repurchased $52 million of common stock and $3 million is still available for share repurchase under the company’s current plan.
Guidance for Q2 & 2022
Omnicell has provided its guidance for the second quarter of 2022, taking into consideration expected contributions and integration costs of recent acquisitions as well as the anticipated impact of the ongoing inflationary environment. The company has also updated its outlook for full-year 2022.
For the second quarter of 2022, Omnicell expects revenues between $337 million and $343 million. The Zacks Consensus Estimate for the metric is pegged at $335 million. Product revenues are forecast between $241 million and $244 million, while service revenues are projected between $96 million and $99 million for the quarter.
Second-quarter adjusted EPS is envisioned in the band of 82-89 cents. The Zacks Consensus Estimate for the same is pegged at 85 cents.
For the full year, the company has maintained its product bookings guidance in the range of $1.370 billion to $1.430 billion.
Revenue estimates have also been maintained in the band of $1.385 billion and $1.410 billion. The Zacks Consensus Estimate for the same stands at $1.40 billion.
For 2022, the currently-projected ranges for product and service revenues are $975-$990 million (up from the prior estimated $950-$965 million) and $410-$420 million (down from the prior estimated $435-$445 million).
Full-year adjusted EPS is expected between $3.85 and $4.05 (up from the previously projected $3.75 and $3.95). The Zacks Consensus Estimate for the metric stands at $3.77.
Our Take
Omnicell exited the first quarter of 2022 on a bullish note, with earnings and revenues ahead of the Zacks Consensus Estimate. The top line was driven by strong revenue contributions from the company’s operating segments. The ongoing robust demand for Omnicell’s medication management solutions buoys optimism. The revenue contributions from the latest acquisitions of FDS Amplicare, ReCept and MarkeTouch Media also instill investors’ confidence. The company’s raised EPS guidance for 2022 is indicative that this growth momentum will continue.
However, mounting operating expenses have been placing significant pressure on the company’s bottom line. The decline in the short-term cash level is discouraging. The current inflationary environment as well the geopolitical scenario continues to pose challenges.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Molina Healthcare, Inc. (MOH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
Molina Healthcare, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of $4.90, which beat the Zacks Consensus Estimate by 3.4%. Revenues of $7.8 billion outpaced the consensus mark by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Molina Healthcare has an estimated long-term growth rate of 16.4%. MOH’s earnings surpassed estimates in the trailing three quarters and missed in one, the average surprise being 1.5%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #2.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Omnicell (OMCL) Q1 Earnings Top Estimates, Margins Decline
Omnicell, Inc. (OMCL - Free Report) reported first-quarter 2022 adjusted earnings per share (EPS) of 83 cents, similar to the year-ago reported quarter. The metric surpassed the Zacks Consensus Estimate by 16.9%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS was 17 cents for the quarter under review, reflecting a 43.3% fall from the EPS of 30 cents in the year-ago quarter.
Revenues in Detail
First-quarter revenues of $318.8 million rose 26.6% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.7%.
Segmental Details
On a segmental basis, Product revenues rose 26.8% year over year to $225.9 million in the reported quarter.
Service and other revenues climbed 26.1% year over year to $92.9 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 22.7% to $150 million. Company-adjusted gross margin contracted 149 basis points (bps) to 47.1%.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. Quote
Operating expenses were $144.9 million in the first quarter, up 41.2% year over year. Operating profit totaled $5.1 million, reflecting a 74.1% fall from the prior-year quarter. Operating margin in the first quarter contracted 619 bps to 1.6%.
Financial Update
Omnicell exited first-quarter 2022 with cash and cash equivalents of $265 million compared with $349.1 million at the end of 2021.
Cumulative net cash used in operating activities at the end of the first quarter was $15.9 million, compared with a cumulative net cash inflow of $57.4 million in the year-ago quarter.
For the first quarter, the company repurchased $52 million of common stock and $3 million is still available for share repurchase under the company’s current plan.
Guidance for Q2 & 2022
Omnicell has provided its guidance for the second quarter of 2022, taking into consideration expected contributions and integration costs of recent acquisitions as well as the anticipated impact of the ongoing inflationary environment. The company has also updated its outlook for full-year 2022.
For the second quarter of 2022, Omnicell expects revenues between $337 million and $343 million. The Zacks Consensus Estimate for the metric is pegged at $335 million. Product revenues are forecast between $241 million and $244 million, while service revenues are projected between $96 million and $99 million for the quarter.
Second-quarter adjusted EPS is envisioned in the band of 82-89 cents. The Zacks Consensus Estimate for the same is pegged at 85 cents.
For the full year, the company has maintained its product bookings guidance in the range of $1.370 billion to $1.430 billion.
Revenue estimates have also been maintained in the band of $1.385 billion and $1.410 billion. The Zacks Consensus Estimate for the same stands at $1.40 billion.
For 2022, the currently-projected ranges for product and service revenues are $975-$990 million (up from the prior estimated $950-$965 million) and $410-$420 million (down from the prior estimated $435-$445 million).
Full-year adjusted EPS is expected between $3.85 and $4.05 (up from the previously projected $3.75 and $3.95). The Zacks Consensus Estimate for the metric stands at $3.77.
Our Take
Omnicell exited the first quarter of 2022 on a bullish note, with earnings and revenues ahead of the Zacks Consensus Estimate. The top line was driven by strong revenue contributions from the company’s operating segments. The ongoing robust demand for Omnicell’s medication management solutions buoys optimism. The revenue contributions from the latest acquisitions of FDS Amplicare, ReCept and MarkeTouch Media also instill investors’ confidence. The company’s raised EPS guidance for 2022 is indicative that this growth momentum will continue.
However, mounting operating expenses have been placing significant pressure on the company’s bottom line. The decline in the short-term cash level is discouraging. The current inflationary environment as well the geopolitical scenario continues to pose challenges.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Molina Healthcare, Inc. (MOH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
Molina Healthcare, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of $4.90, which beat the Zacks Consensus Estimate by 3.4%. Revenues of $7.8 billion outpaced the consensus mark by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Molina Healthcare has an estimated long-term growth rate of 16.4%. MOH’s earnings surpassed estimates in the trailing three quarters and missed in one, the average surprise being 1.5%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #2.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.