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Inogen (INGN) Up 8% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Inogen, Inc (INGN - Free Report) . Shares have added about 8% 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 of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Inogen Beats Earnings and Revenue Estimates in Q1
Goleta, CA-based Inogen reported first-quarter 2017 earnings of $0.27 per share, which comfortably beat the Zacks Consensus Estimate and the year-ago figure of $0.12.
The upside was driven by roughly 22.1% growth in revenues, which totaled $52.5 million, beating the Zacks Consensus Estimate of almost $49.6 million.
Segment Details
Sales revenues surged 40.1% to $46 million, while rental revenues plunged 35.8% to $6.5 million.
Business-to-business: Business-to-business domestic sales were up 84.2% on a year-over-year basis to almost $17.4 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 14.6% to almost $11.4 million on the back of solid demand.
Direct-to-consumer: Direct-to-consumer domestic sales advanced 27.8% to almost $17 million.
However, direct-to-consumer rental sales fell 35.8% to $6.5 million.
Margin Details
In the reported quarter, Inogen registered a gross margin of 49% (as a percentage of revenues), down 50 basis points (bps) on a year-over-year basis.
Meanwhile, sales gross margin expanded 260 bps in the quarter to 52.3%, as a percentage of revenues. Per management, an increase in sales gross margin was driven by lower cost of goods sold in the quarter.
Rental gross margin was 25.9% in the reported quarter, much lower than 48.9% in the first quarter of 2016. This was primarily driven by lower net revenue per rental patient.
Adjusted EBITDA rose 34% to $10.9 million on a year-over-year basis.
Guidance
Inogen reiterated its 2017 revenue and adjusted EBITDA guidance. However, the company raised its full-year adjusted net income guidance.
Inogen projects revenues in the range of $233–$239 million, higher than the previous range of $230–$236 million. This represents year-over-year growth of 14.9%–17.8%. The company expects rental revenue to decline in 2017, courtesy of lower average rental revenue per patient.
Adjusted EBITDA is projected in the band of $46–$50 million, representing an increase of 6%–15.2% year over year.
Inogen expects adjusted net income in the range of $22 million to $24 million, up from the previously provided range of $21–$23 million. This represents 7.2%–17% year-over-year growth.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Inogen's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. 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 solely suitable for growth investors.
Outlook
Notably, the stock has a Zacks Rank #1 (Strong Buy). We are looking for an above average return from the stock in the next few months.
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Inogen (INGN) Up 8% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Inogen, Inc (INGN - Free Report) . Shares have added about 8% 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 of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Inogen Beats Earnings and Revenue Estimates in Q1
Goleta, CA-based Inogen reported first-quarter 2017 earnings of $0.27 per share, which comfortably beat the Zacks Consensus Estimate and the year-ago figure of $0.12.
The upside was driven by roughly 22.1% growth in revenues, which totaled $52.5 million, beating the Zacks Consensus Estimate of almost $49.6 million.
Segment Details
Sales revenues surged 40.1% to $46 million, while rental revenues plunged 35.8% to $6.5 million.
Business-to-business: Business-to-business domestic sales were up 84.2% on a year-over-year basis to almost $17.4 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 14.6% to almost $11.4 million on the back of solid demand.
Direct-to-consumer: Direct-to-consumer domestic sales advanced 27.8% to almost $17 million.
However, direct-to-consumer rental sales fell 35.8% to $6.5 million.
Margin Details
In the reported quarter, Inogen registered a gross margin of 49% (as a percentage of revenues), down 50 basis points (bps) on a year-over-year basis.
Meanwhile, sales gross margin expanded 260 bps in the quarter to 52.3%, as a percentage of revenues. Per management, an increase in sales gross margin was driven by lower cost of goods sold in the quarter.
Rental gross margin was 25.9% in the reported quarter, much lower than 48.9% in the first quarter of 2016. This was primarily driven by lower net revenue per rental patient.
Adjusted EBITDA rose 34% to $10.9 million on a year-over-year basis.
Guidance
Inogen reiterated its 2017 revenue and adjusted EBITDA guidance. However, the company raised its full-year adjusted net income guidance.
Inogen projects revenues in the range of $233–$239 million, higher than the previous range of $230–$236 million. This represents year-over-year growth of 14.9%–17.8%. The company expects rental revenue to decline in 2017, courtesy of lower average rental revenue per patient.
Adjusted EBITDA is projected in the band of $46–$50 million, representing an increase of 6%–15.2% year over year.
Inogen expects adjusted net income in the range of $22 million to $24 million, up from the previously provided range of $21–$23 million. This represents 7.2%–17% year-over-year growth.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Inogen, Inc Price and Consensus
Inogen, Inc Price and Consensus | Inogen, Inc Quote
VGM Scores
At this time, Inogen's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. The stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. 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 solely suitable for growth investors.
Outlook
Notably, the stock has a Zacks Rank #1 (Strong Buy). We are looking for an above average return from the stock in the next few months.