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Omnicell (OMCL) Q1 Loss Narrower than Expected, Revenues Lag
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Omnicell, Inc. (OMCL - Free Report) reported a loss per share of 29 cents in first-quarter 2017, reflecting a deterioration from the year-ago loss of a penny. The Zacks Consensus Estimate is pegged at a loss of 30 cents.
Considering stock-based compensation expenses as a regular one, adjusted loss per share came in at 6 cents, as against earnings of 27 cents in the year-ago quarter.
Revenues in Detail
Revenues during the first quarter declined 11.9% year over year to $150.6 million, missing the Zacks Consensus Estimate of $152 million.
According to management, the company has become a strong player through its differentiated platform and pioneering products including the XT Series. In the reported quarter, the company witnessed strong customer acceptance of its new XT Series products.
On a segmental basis, Omnicell’s Automation and Analytics revenues decreased 16.6% year over year during the first quarter to $124.2 million.
However, revenues at the Medication Adherence segment rose 19.6% year over year to $26.4 million.
Operational Update
Omnicell's gross profit during the reported quarter was down 19.6% to $64.2 million. Gross margin contracted 412 basis points (bps) to 42.6%. According to the company, the adjusted gross margin in the first quarter was 46.4%, reflecting a contraction of 500 bps year over year.
SG&A expenses in the first quarter rose 0.5% year over year to $64.6 million. Research and development expenses increased 21.8% year over year to $16.8 million. Operating expenses were $81.4 million in the first quarter, up 4.2% year over year. The higher operating expenses resulted in operating loss of $0.7 million, as against operating income of $20.8 million in the year-ago quarter.
According to the company, the adjusted operating income in the quarter was $70.8 million, up 3.4% from the year-ago quarter.
Financial Update
Omnicell exited first-quarter 2017 with cash and cash equivalents of $46.3 million, compared with $54.5 million at the end of fiscal 2016.
2017 Guidance
For full-year 2017, Omnicell expects product bookings in the range of $570–$590 million (unchanged from the earlier forecast). The company however lowered its adjusted revenue to a band of $720 million to $740 million, from the earlier $740 million and $760 million. Adjusted earnings guidance has also been lowered to the band of $1.22 to $1.34 per share from the earlier range of $1.32–$1.42.
The company also initiated its second-quarter of 2017 guidance. Management expects adjusted revenue in the band of $172 million to $178 million. Omnicell expects second-quarter 2017 adjusted earnings between 21 cents to 27 cents (earlier it was 0-4 cents per share).
Our Take
Omnicell exited first-quarter 2017 on a disappointing note with year-over-year decline in both earnings and revenues. Weak margins continue to raise concern.
However, the company is expected to gain in terms of revenue and profits in the future from its recent launch of XT Series.
Zacks Rank & Key Picks
Omnicell currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 33.8% in the last one year, in comparison to the S&P 500’s 16.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.2% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 34.9% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Omnicell (OMCL) Q1 Loss Narrower than Expected, Revenues Lag
Omnicell, Inc. (OMCL - Free Report) reported a loss per share of 29 cents in first-quarter 2017, reflecting a deterioration from the year-ago loss of a penny. The Zacks Consensus Estimate is pegged at a loss of 30 cents.
Considering stock-based compensation expenses as a regular one, adjusted loss per share came in at 6 cents, as against earnings of 27 cents in the year-ago quarter.
Revenues in Detail
Revenues during the first quarter declined 11.9% year over year to $150.6 million, missing the Zacks Consensus Estimate of $152 million.
According to management, the company has become a strong player through its differentiated platform and pioneering products including the XT Series. In the reported quarter, the company witnessed strong customer acceptance of its new XT Series products.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise | Omnicell, Inc. Quote
On a segmental basis, Omnicell’s Automation and Analytics revenues decreased 16.6% year over year during the first quarter to $124.2 million.
However, revenues at the Medication Adherence segment rose 19.6% year over year to $26.4 million.
Operational Update
Omnicell's gross profit during the reported quarter was down 19.6% to $64.2 million. Gross margin contracted 412 basis points (bps) to 42.6%. According to the company, the adjusted gross margin in the first quarter was 46.4%, reflecting a contraction of 500 bps year over year.
SG&A expenses in the first quarter rose 0.5% year over year to $64.6 million. Research and development expenses increased 21.8% year over year to $16.8 million. Operating expenses were $81.4 million in the first quarter, up 4.2% year over year. The higher operating expenses resulted in operating loss of $0.7 million, as against operating income of $20.8 million in the year-ago quarter.
According to the company, the adjusted operating income in the quarter was $70.8 million, up 3.4% from the year-ago quarter.
Financial Update
Omnicell exited first-quarter 2017 with cash and cash equivalents of $46.3 million, compared with $54.5 million at the end of fiscal 2016.
2017 Guidance
For full-year 2017, Omnicell expects product bookings in the range of $570–$590 million (unchanged from the earlier forecast). The company however lowered its adjusted revenue to a band of $720 million to $740 million, from the earlier $740 million and $760 million. Adjusted earnings guidance has also been lowered to the band of $1.22 to $1.34 per share from the earlier range of $1.32–$1.42.
The company also initiated its second-quarter of 2017 guidance. Management expects adjusted revenue in the band of $172 million to $178 million. Omnicell expects second-quarter 2017 adjusted earnings between 21 cents to 27 cents (earlier it was 0-4 cents per share).
Our Take
Omnicell exited first-quarter 2017 on a disappointing note with year-over-year decline in both earnings and revenues. Weak margins continue to raise concern.
However, the company is expected to gain in terms of revenue and profits in the future from its recent launch of XT Series.
Zacks Rank & Key Picks
Omnicell currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 33.8% in the last one year, in comparison to the S&P 500’s 16.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.2% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 34.9% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>