Inogen, Inc. ( INGN Quick Quote INGN - Free Report) reported third-quarter 2021 adjusted earnings per share (EPS) of 53 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 29 cents. The company reported a loss of 8 cents in the year-ago quarter. GAAP EPS in the quarter was 54 cents, against a loss of 8 cents in the prior-year quarter. Revenue Details
Revenues were $93.1 million, which beat the Zacks Consensus Estimate by 9%. On a year-over-year basis, the top line improved 25.3%, driven by sustained consumer demand, higher average selling prices in all channels, and lower COVID-19 pandemic-induced impacts.
Rental revenues grossed $12.1 million, up 61.3% from the year-ago period.
Sales revenues were $80.9 million, up 21.2%. Revenues by Region & Category
Business-to-business revenues in the United States amounted to $22.8 million, down 1.1% on a year-over-year basis.
Internationally, this segment recorded revenues of $21.8 million, up 49.7% year over year and 46.9% at constant currency. Per management, higher COVID-19 vaccination rates and increased ambulation of patients in Europe, and rise in operational capacity of certain European respiratory assessment centers closer to normal levels contributed to the upside.
Direct-to-consumer revenues increased 24.6% year over year to $36.3 million in the quarter, attributable to enhanced demand for portable oxygen concentrators (POCs) on account 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.
In the third quarter, gross profit was $47.7 million, up 44.5% year over year. Gross margin came in at 51.2%, up 680 basis points (bps).
Research and development expenses were $3.8 million, up 6.9% from the year-ago quarter. General and administrative expenses amounted to $9.3 million, up 7.8%. Operating income in the quarter was $6.4 million, against the year-ago quarter’s operating loss of $1.9 million. Cash Position
The company exited the third quarter of 2021 with cash, cash equivalents and marketable securities of $241.6 million, down from $250 million at the end of the second quarter of 2021.
Cumulative cash flow provided by operating activities at the end of the third quarter totaled $17.1 million compared with $20.8 million in the prior-year period. Guidance
Due to the continued uncertainty in the business on account of supply chain disruptions, higher cost of critical components, and the impact and scope of the COVID-19 pandemic, the company refrained from providing a full-year outlook yet.
Inogen ended the third 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 third quarter, the company witnessed strength across direct-to-consumer and international business-to-business segments. The significant expansion in gross margin is positive.
However, weakness in the domestic business-to-business segment is a headwind. Increase in operating expenses remains a concern. Zacks Rank
Currently, Inogen carries a Zacks Rank of 4 (Sell).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are
Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) , West Pharmaceutical Services, Inc. ( WST Quick Quote WST - Free Report) , and AngioDynamics, Inc. ( ANGO Quick Quote ANGO - Free Report) . While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%. West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%. AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.