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Omnicell (OMCL) Q4 Earnings Beat Estimates, Revenues Miss
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Omnicell, Inc. (OMCL - Free Report) delivered adjusted earnings per share (EPS) of 70 cents in fourth-quarter 2018, beating the Zacks Consensus Estimate of 67 cents.
Adjusted earnings improved 27.3% from the year-ago figure and also surpassed the company’s guided range of 64-69 cents.
Full-year adjusted earnings came in at $2.09 per share, reflecting a 48.2% surge from the year-ago period. Moreover, the figure exceeded the Zacks Consensus Estimate of $2.04
Revenues in Detail
Adjusted revenues in the fourth quarter increased 7.7% year over year to $211.8 million. However, the top line missed the Zacks Consensus Estimate by 1.3%.
The company reported 2018 revenues of $787.3 million, up 10.3% from the year-earlier period. But the number lagged the Zacks Consensus Estimate of $790.2 million.
Quarterly Details
On a segmental basis, Automation and Analytics revenues increased 9.9% year over year in the reported quarter to $177.6 million.
Moreover, revenues at the Medication Adherence segment inched up 1.9% year over year to $34.1 million.
Operational Update
Omnicell's gross profit in the reported quarter rose 9.3% to $102.1 million. Gross margin expanded 65 basis points (bps) to 48.3%.
SG&A expenses in the fourth quarter escalated 7.9% year over year to $66.3 million. Research and development expenses were up 6.9% year over year to $16.9 million. Operating expenses were $83.3 million in the fourth quarter, up 7.7% year over year.
Operating profit in the quarter under review totaled $18.9 million, up 16.8% from the prior-year quarter. Operating margin in the fourth quarter rose 69 bps to 8.9%.
Financial Update
Omnicell exited 2018 with cash and cash equivalents of $67.2 million compared with $32.4 million at the end of 2017.
2019 Guidance
For the first quarter of 2019, Omnicell expects adjusted revenues in the band of $196-$202 million. The company expects first-quarter adjusted earnings per share within 38-43 cents. The Zacks Consensus Estimate for first-quarter revenues is pegged at $204.2 million, ahead of the guided range. The consensus estimate for EPS of 37 cents lies below the projected range.
For 2019, Omnicell raised product bookings to $745-$780 million.
The company’s full year expects adjusted revenues in the band of $880-$900 million. The Zacks Consensus Estimate for full-year revenues stands at $878.1 million, falling short of the company’s forecast.
Omnicell expects adjusted EPS in the range of $2.40-$2.60. The Zacks Consensus Estimate for full-year earnings is pegged at $2.40, in line with the lower end of the company’s expectation.
Our Take
Omnicell’s fourth-quarter 2018 performance was mixed. While earnings exceeded the Zacks Consensus Estimate, revenues fell shy of the same. The company continued to see a solid uptake of Omnicell XT. It also inked various deals for both the XR2 and the IVX Workflow products. A rise in bookings and product backlogs was also observed in the reported quarter. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain traction from launches, strategic partnerships and digital transformation.
However, a tough competitive landscape acts as a dampener.
Zacks Rank & Key Picks
Omnicell has a Zacks Rank #3 (Hold). Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Abbott Laboraories (ABT - Free Report) , AngioDynamics (ANGO - Free Report) and CONMED Corp. (CNMD - Free Report) .
Abbott reported fourth-quarter 2018 adjusted EPS of 81 cents, in line with the Zacks Consensus Estimate. Revenues of $7.77 billion remained slightly below the Zacks Consensus Estimate of $7.79 billion. The stock has a Zacks Rank #2 (Buy).
AngioDynamics’ second-quarter fiscal 2019 adjusted EPS of 22 cents trumped the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, surpassing the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter adjusted EPS of 73 cents, matching the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Omnicell (OMCL) Q4 Earnings Beat Estimates, Revenues Miss
Omnicell, Inc. (OMCL - Free Report) delivered adjusted earnings per share (EPS) of 70 cents in fourth-quarter 2018, beating the Zacks Consensus Estimate of 67 cents.
Adjusted earnings improved 27.3% from the year-ago figure and also surpassed the company’s guided range of 64-69 cents.
Full-year adjusted earnings came in at $2.09 per share, reflecting a 48.2% surge from the year-ago period. Moreover, the figure exceeded the Zacks Consensus Estimate of $2.04
Revenues in Detail
Adjusted revenues in the fourth quarter increased 7.7% year over year to $211.8 million. However, the top line missed the Zacks Consensus Estimate by 1.3%.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise | Omnicell, Inc. Quote
The company reported 2018 revenues of $787.3 million, up 10.3% from the year-earlier period. But the number lagged the Zacks Consensus Estimate of $790.2 million.
Quarterly Details
On a segmental basis, Automation and Analytics revenues increased 9.9% year over year in the reported quarter to $177.6 million.
Moreover, revenues at the Medication Adherence segment inched up 1.9% year over year to $34.1 million.
Operational Update
Omnicell's gross profit in the reported quarter rose 9.3% to $102.1 million. Gross margin expanded 65 basis points (bps) to 48.3%.
SG&A expenses in the fourth quarter escalated 7.9% year over year to $66.3 million. Research and development expenses were up 6.9% year over year to $16.9 million. Operating expenses were $83.3 million in the fourth quarter, up 7.7% year over year.
Operating profit in the quarter under review totaled $18.9 million, up 16.8% from the prior-year quarter. Operating margin in the fourth quarter rose 69 bps to 8.9%.
Financial Update
Omnicell exited 2018 with cash and cash equivalents of $67.2 million compared with $32.4 million at the end of 2017.
2019 Guidance
For the first quarter of 2019, Omnicell expects adjusted revenues in the band of $196-$202 million. The company expects first-quarter adjusted earnings per share within 38-43 cents. The Zacks Consensus Estimate for first-quarter revenues is pegged at $204.2 million, ahead of the guided range. The consensus estimate for EPS of 37 cents lies below the projected range.
For 2019, Omnicell raised product bookings to $745-$780 million.
The company’s full year expects adjusted revenues in the band of $880-$900 million. The Zacks Consensus Estimate for full-year revenues stands at $878.1 million, falling short of the company’s forecast.
Omnicell expects adjusted EPS in the range of $2.40-$2.60. The Zacks Consensus Estimate for full-year earnings is pegged at $2.40, in line with the lower end of the company’s expectation.
Our Take
Omnicell’s fourth-quarter 2018 performance was mixed. While earnings exceeded the Zacks Consensus Estimate, revenues fell shy of the same. The company continued to see a solid uptake of Omnicell XT. It also inked various deals for both the XR2 and the IVX Workflow products. A rise in bookings and product backlogs was also observed in the reported quarter. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain traction from launches, strategic partnerships and digital transformation.
However, a tough competitive landscape acts as a dampener.
Zacks Rank & Key Picks
Omnicell has a Zacks Rank #3 (Hold). Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Abbott Laboraories (ABT - Free Report) , AngioDynamics (ANGO - Free Report) and CONMED Corp. (CNMD - Free Report) .
Abbott reported fourth-quarter 2018 adjusted EPS of 81 cents, in line with the Zacks Consensus Estimate. Revenues of $7.77 billion remained slightly below the Zacks Consensus Estimate of $7.79 billion. The stock has a Zacks Rank #2 (Buy).
AngioDynamics’ second-quarter fiscal 2019 adjusted EPS of 22 cents trumped the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, surpassing the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter adjusted EPS of 73 cents, matching the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>