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Inogen (INGN) Tops Earnings & Revenues in Q4; View Upbeat
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Inogen Inc. (INGN - Free Report) reported fourth-quarter 2016 earnings of 25 cents per share, which surpassed both the Zacks Consensus Estimate by 15 cents and the year-ago figure by 11 cents.
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. Currently, Inogen carries a Zacks Rank #3 (Hold).
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.
Our Take
In our view, the major positives for Inogen in the reported quarter were solid domestic and international business-to-business sales. However, soaring rental revenues are a matter of concern, which might mar the company’s growth prospects in the coming quarters.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy), while Avinger and Fluidigm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 184.6%.
Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 1.23% over the last three months.
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Inogen (INGN) Tops Earnings & Revenues in Q4; View Upbeat
Inogen Inc. (INGN - Free Report) reported fourth-quarter 2016 earnings of 25 cents per share, which surpassed both the Zacks Consensus Estimate by 15 cents and the year-ago figure by 11 cents.
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. Currently, Inogen carries a Zacks Rank #3 (Hold).
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.
Inogen, Inc Price and EPS Surprise
Inogen, Inc Price and EPS Surprise | Inogen, Inc Quote
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.
Our Take
In our view, the major positives for Inogen in the reported quarter were solid domestic and international business-to-business sales. However, soaring rental revenues are a matter of concern, which might mar the company’s growth prospects in the coming quarters.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy), while Avinger and Fluidigm carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 184.6%.
Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 1.23% over the last three months.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>