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Inogen (INGN) Stock Loses 26.7% In Spite of Q2 Earnings Beat
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Shares of Inogen, Inc. (INGN - Free Report) have lost 26.7% on Aug 5, following the company's second-quarter 2021 results.
The company reported second-quarter 2021 adjusted earnings per share (EPS) of 22 cents, comparing favourably with the Zacks Consensus Estimate of a loss of 13 cents. The bottom line improved 83.3% from the year-ago quarter.
GAAP EPS in the quarter was 23 cents, up 91.7% from the prior-year quarter.
Revenue Details
Revenues were $101.6 million, which beat the Zacks Consensus Estimate by 15.2%. On a year-over-year basis, the top line surged 41.7% driven by robust consumer demand, higher average selling prices in all channels, and lower COVID-19 pandemic-induced impacts.
Segmental Details
Rental revenues grossed $11.3 million, up 85.2% from the year-ago period.
Sales revenues were $90.3 million, up 37.6%.
Revenues by Region & Category
Business-to-business revenues in the United States amounted to $27.6 million, up 27.8% on a year-over-year basis. Per management, this upside was driven by higher demand for portable oxygen concentrators (POCs) for both traditional long-term oxygen therapy patients and COVID-19 patients upon hospital discharge, and increased reseller demand.
Internationally, this segment recorded revenues of $21.8 million, up 57.3% year over year and 47.8% at constant currency. Per management, higher COVID-19 vaccination rates and increased ambulation of patients in Europe, rise in operational capacity of certain European respiratory assessment centers, and higher sales in India due to the spike in COVID-19 cases in that market contributed to the upside.
Direct-to-consumer revenues increased 35.6% year over year to $40.9 million in the quarter, attributable to higher demand for POCs on the back of higher COVID-19 vaccination rates within the company’s patient pool and easing of COVID-19 restrictions resulting in increased ambulation and improved consumer confidence.
Margins
In the second quarter, gross profit was $50.3 million, up 53.7% year over year. Gross margin came in at 49.6%, up 390 basis points (bps).
Research and development expenses were $4.1 million, up 25.3% from the year-ago quarter. General and administrative expenses amounted to $5.2 million, down 46.3%.
Operating income in the quarter was $11.7 million, against the year-ago quarter’s operating loss of $2.4 million.
Cash Position
The company exited the second quarter of 2021 with cash, cash equivalents and marketable securities of $250 million, up from $233.2 million at the end of the first quarter of 2021.
Guidance
Due to the uncertainty emanating from the impact and scope of the COVID-19 pandemic, the company refrained from providing full-year outlook yet.
Wrapping Up
Inogen ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw growth in revenues within its segments. In the second quarter, the company witnessed strength across direct-to-consumer, domestic business-to-business and international business-to-business segments. The significant expansion in gross margin is another plus. The company delivered record revenues in the quarter under review.
However, increase in operating expenses remains a concern.
Zacks Rank and Other Key Picks
Currently, Inogen carries a Zacks Rank of 3 (Hold). Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
DENTSPLY SIRONA reported second-quarter 2021 adjusted EPS of 71 cents, which beat the Zacks Consensus Estimate by 9.2%. Second-quarter revenues of $1.07 billion outpaced the consensus mark by 6.9%.
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Inogen (INGN) Stock Loses 26.7% In Spite of Q2 Earnings Beat
Shares of Inogen, Inc. (INGN - Free Report) have lost 26.7% on Aug 5, following the company's second-quarter 2021 results.
The company reported second-quarter 2021 adjusted earnings per share (EPS) of 22 cents, comparing favourably with the Zacks Consensus Estimate of a loss of 13 cents. The bottom line improved 83.3% from the year-ago quarter.
GAAP EPS in the quarter was 23 cents, up 91.7% from the prior-year quarter.
Revenue Details
Revenues were $101.6 million, which beat the Zacks Consensus Estimate by 15.2%. On a year-over-year basis, the top line surged 41.7% driven by robust consumer demand, higher average selling prices in all channels, and lower COVID-19 pandemic-induced impacts.
Segmental Details
Rental revenues grossed $11.3 million, up 85.2% from the year-ago period.
Sales revenues were $90.3 million, up 37.6%.
Revenues by Region & Category
Business-to-business revenues in the United States amounted to $27.6 million, up 27.8% on a year-over-year basis. Per management, this upside was driven by higher demand for portable oxygen concentrators (POCs) for both traditional long-term oxygen therapy patients and COVID-19 patients upon hospital discharge, and increased reseller demand.
Inogen, Inc Price, Consensus and EPS Surprise
Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote
Internationally, this segment recorded revenues of $21.8 million, up 57.3% year over year and 47.8% at constant currency. Per management, higher COVID-19 vaccination rates and increased ambulation of patients in Europe, rise in operational capacity of certain European respiratory assessment centers, and higher sales in India due to the spike in COVID-19 cases in that market contributed to the upside.
Direct-to-consumer revenues increased 35.6% year over year to $40.9 million in the quarter, attributable to higher demand for POCs on the back of higher COVID-19 vaccination rates within the company’s patient pool and easing of COVID-19 restrictions resulting in increased ambulation and improved consumer confidence.
Margins
In the second quarter, gross profit was $50.3 million, up 53.7% year over year. Gross margin came in at 49.6%, up 390 basis points (bps).
Research and development expenses were $4.1 million, up 25.3% from the year-ago quarter. General and administrative expenses amounted to $5.2 million, down 46.3%.
Operating income in the quarter was $11.7 million, against the year-ago quarter’s operating loss of $2.4 million.
Cash Position
The company exited the second quarter of 2021 with cash, cash equivalents and marketable securities of $250 million, up from $233.2 million at the end of the first quarter of 2021.
Guidance
Due to the uncertainty emanating from the impact and scope of the COVID-19 pandemic, the company refrained from providing full-year outlook yet.
Wrapping Up
Inogen ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw growth in revenues within its segments. In the second quarter, the company witnessed strength across direct-to-consumer, domestic business-to-business and international business-to-business segments. The significant expansion in gross margin is another plus. The company delivered record revenues in the quarter under review.
However, increase in operating expenses remains a concern.
Zacks Rank and Other Key Picks
Currently, Inogen carries a Zacks Rank of 3 (Hold). Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
DENTSPLY SIRONA reported second-quarter 2021 adjusted EPS of 71 cents, which beat the Zacks Consensus Estimate by 9.2%. Second-quarter revenues of $1.07 billion outpaced the consensus mark by 6.9%.