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Inogen (INGN) Q1 Loss Narrower Than Expected, Revenues Beat

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Inogen, Inc. (INGN - Free Report) reported first-quarter 2021 loss per share of 3 cents, narrower than the Zacks Consensus Estimate of a loss of 28 cents as well as the year-ago loss of 7 cents.

Revenues came in at $86.9 million, which beat the Zacks Consensus Estimate by 0.8%. On a year-over-year basis, the top line, however, dropped 1.8%, mainly due to the impact of the COVID-19 pandemic.

Segmental Details

Rental revenues grossed $9.9 million, up 84.2% from the year-ago period.

Sales revenues came in at $77.1 million, down 7.2%.

Revenues by Region & Category

Business-to-business revenues in the United States amounted to $30.7 million, up 11.6% on a year-over-year basis. Per management, this upside was driven by solid demand for portable oxygen concentrators (POCs) for COVID-19 patients upon hospital discharge.

Internationally, this segment recorded revenues of $15.7 million, down 21.7% year over year and 23% at constant currency. Per management, the decline was mainly due to the persistence of the pandemic with recurrent lockdowns in many European nations as well as reduced operational capacity of certain European respiratory assessment centers.

Direct-to-consumer revenues fell 13.8% year over year to $30.6 million in the quarter, attributable to lower average inside sales representative headcount stemming from COVID-19 adversity.

Margins

In the first quarter, gross profit was $39.9 million, up 3.9% year over year. Gross margin came in at 45.9%, up a significant 251 basis points (bps).

Total operating costs came in at $42 million, up 3.6%.

Loss from operations in the quarter was $2.1 million, narrower than the year-ago quarter’s operating loss of $2.2 million.

 

Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote

 

Cash Position

The company exited the first quarter of 2021 with cash and cash equivalents of $220 million compared with $211.9 million at the end of the fourth quarter of 2020.

Guidance

Due to the uncertainty emanating from the impact and scope of the COVID-19 pandemic, the company could not issue full-year outlook yet.

Wrapping Up

Inogen ended the first quarter on a strong note. The company saw growth in revenues within its Rental segment and domestic business-to-business segment during the period. The significant expansion in gross margin is another plus. Sequential growth in total revenues is encouraging too.

However, the company reported a decline in international business-to-business revenues in the quarter under review. Also, weakness in direct-to-consumer revenues during the period is concerning.

Zacks Rank and Other Key Picks

Inogen currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are Boston Scientific Corporation (BSX - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.

Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.

HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.

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