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Omnicell (OMCL) Q4 Earnings Miss Estimates, Revenues Beat
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Omnicell, Inc. (OMCL - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 92 cents, up 1.1% year over year. However, the metric missed the Zacks Consensus Estimate by 3.2%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS were 28 cents for the quarter under review, reflecting a 24.3% fall from EPS of 37 cents reported in the year-ago quarter.
For the full year, adjusted earnings were $3.81 per share, up 50% from the year-ago period. This figure was in line with the Zacks Consensus Estimate.
Revenues in Detail
Fourth-quarter revenues of $311.03 million rose 24.8% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.3%.
Total revenues for 2021 were $1.13 billion, up 26.9% from the year-ago period. This figure met the Zacks Consensus Estimate.
Segmental Details
On a segmental basis, Product revenues rose 27.2% year over year to $223.5 million in the reported quarter.
Service and other revenues climbed 19% year over year to $87.5 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 20.7% to $149.3 million. Company-adjusted gross margin contracted 162 basis points (bps) to 48%.
Operating expenses were $137.7 million in the fourth quarter, up 33.1% year over year. Operating profit totaled $11.6 million, reflecting a 42.7% fall from the prior-year quarter. Operating margin in the fourth quarter contracted 439 bps to 3.7%.
Financial Update
Omnicell exited full-year 2021 with cash and cash equivalents of $349.1 million compared with $485.9 million at the end of 2020.
Cumulative cash flow from operating activities at the end of 2021 was $231.8 million compared with $185.9 million a year ago.
Guidance for Q1 & 2022
Omnicell has provided its guidance for the first quarter and full-year 2022, which considers the expected contributions of ReCept, MarkeTouch Media, the previously-acquired FDS Amplicare, the integration costs of such acquisitions and the anticipated effects of the current inflationary environment.
For the first quarter of 2022, Omnicell expects revenues between $312 million and $318 million. The Zacks Consensus Estimate for the metric is pegged at $294.78 million. Product revenues are forecast between $216 million and $219 million, while service revenues are projected within $96 million and $99 million for the quarter.
First-quarter adjusted EPS is envisioned in the band of 65-72 cents. The Zacks Consensus Estimate for the same is pegged at 69 cents.
For the full year, the company anticipates product bookings in the range of $1.370 billion to $1.430 billion.
Revenues are estimated between $1.385 billion and $1.410 billion. The Zacks Consensus Estimate for the same stands at $1.28 billion.
For 2022, the currently-projected ranges for product and service revenues are $950-$965 million and $435-$445 million, respectively.
Full-year adjusted EPS is expected between $3.75 and $3.95. The Zacks Consensus Estimate for the metric stands at $4.17.
Our Take
Omnicell’s fourth-quarter 2021 revenues met the Zacks Consensus Estimate and increased year over year. The top line was driven by growth across the company’s operating segments. The year-over-year adjusted EPS growth buoys optimism. The company continued to witness robust demand for Omnicell medication management and adherence automation solutions during the quarter. The significant revenue contributions from the company’s acquisition of FDS Amplicare appear promising. The company’s guidance for 2022 reflects strong growth projections over 2021, raising investors’ confidence.
However, the company reported lower-than-expected earnings for the fourth quarter. The decline in short-term cash level given financing activities related to recently completed acquisitions of Reset and MarkeTouch do not bode well. Contraction of both margins is another downside.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #3 (Hold).
Envista reported second-quarter 2021 adjusted EPS of 46 cents, which beat the Zacks Consensus Estimate by 9.5%. Revenues of $651.8 million outpaced the consensus mark by 2.9%.
Envista has a long-term earnings growth rate of 13.5%. NVST has gained 20.5% against the industry’s 19.4% drop over the past year.
McKesson reported third-quarter fiscal 2022 adjusted earnings per share of $6.15, which beat the Zacks Consensus Estimate of $5.38 per share by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% against the industry’s 4.7% growth in the past year.
Molina Healthcare reported fourth-quarter 2021 adjusted earnings of $2.88 per share, beating the Zacks Consensus Estimate of $2.82. Total revenues of $7,409 million beat the consensus mark of $7,126 million.
Molina Healthcare has a long-term earnings growth rate of 18.8%. MOH has gained 42.7% compared with the industry’s 43.2% increase over the past year.
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Omnicell (OMCL) Q4 Earnings Miss Estimates, Revenues Beat
Omnicell, Inc. (OMCL - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of 92 cents, up 1.1% year over year. However, the metric missed the Zacks Consensus Estimate by 3.2%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS were 28 cents for the quarter under review, reflecting a 24.3% fall from EPS of 37 cents reported in the year-ago quarter.
For the full year, adjusted earnings were $3.81 per share, up 50% from the year-ago period. This figure was in line with the Zacks Consensus Estimate.
Revenues in Detail
Fourth-quarter revenues of $311.03 million rose 24.8% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.3%.
Total revenues for 2021 were $1.13 billion, up 26.9% from the year-ago period. This figure met the Zacks Consensus Estimate.
Segmental Details
On a segmental basis, Product revenues rose 27.2% year over year to $223.5 million in the reported quarter.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. Quote
Service and other revenues climbed 19% year over year to $87.5 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 20.7% to $149.3 million. Company-adjusted gross margin contracted 162 basis points (bps) to 48%.
Operating expenses were $137.7 million in the fourth quarter, up 33.1% year over year. Operating profit totaled $11.6 million, reflecting a 42.7% fall from the prior-year quarter. Operating margin in the fourth quarter contracted 439 bps to 3.7%.
Financial Update
Omnicell exited full-year 2021 with cash and cash equivalents of $349.1 million compared with $485.9 million at the end of 2020.
Cumulative cash flow from operating activities at the end of 2021 was $231.8 million compared with $185.9 million a year ago.
Guidance for Q1 & 2022
Omnicell has provided its guidance for the first quarter and full-year 2022, which considers the expected contributions of ReCept, MarkeTouch Media, the previously-acquired FDS Amplicare, the integration costs of such acquisitions and the anticipated effects of the current inflationary environment.
For the first quarter of 2022, Omnicell expects revenues between $312 million and $318 million. The Zacks Consensus Estimate for the metric is pegged at $294.78 million. Product revenues are forecast between $216 million and $219 million, while service revenues are projected within $96 million and $99 million for the quarter.
First-quarter adjusted EPS is envisioned in the band of 65-72 cents. The Zacks Consensus Estimate for the same is pegged at 69 cents.
For the full year, the company anticipates product bookings in the range of $1.370 billion to $1.430 billion.
Revenues are estimated between $1.385 billion and $1.410 billion. The Zacks Consensus Estimate for the same stands at $1.28 billion.
For 2022, the currently-projected ranges for product and service revenues are $950-$965 million and $435-$445 million, respectively.
Full-year adjusted EPS is expected between $3.75 and $3.95. The Zacks Consensus Estimate for the metric stands at $4.17.
Our Take
Omnicell’s fourth-quarter 2021 revenues met the Zacks Consensus Estimate and increased year over year. The top line was driven by growth across the company’s operating segments. The year-over-year adjusted EPS growth buoys optimism. The company continued to witness robust demand for Omnicell medication management and adherence automation solutions during the quarter. The significant revenue contributions from the company’s acquisition of FDS Amplicare appear promising. The company’s guidance for 2022 reflects strong growth projections over 2021, raising investors’ confidence.
However, the company reported lower-than-expected earnings for the fourth quarter. The decline in short-term cash level given financing activities related to recently completed acquisitions of Reset and MarkeTouch do not bode well. Contraction of both margins is another downside.
Zacks Rank and Key Picks
Omnicell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are Envista Holdings Corporation (NVST - Free Report) , McKesson Corporation (MCK - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Envista reported second-quarter 2021 adjusted EPS of 46 cents, which beat the Zacks Consensus Estimate by 9.5%. Revenues of $651.8 million outpaced the consensus mark by 2.9%.
Envista has a long-term earnings growth rate of 13.5%. NVST has gained 20.5% against the industry’s 19.4% drop over the past year.
McKesson reported third-quarter fiscal 2022 adjusted earnings per share of $6.15, which beat the Zacks Consensus Estimate of $5.38 per share by 14.3%. Revenues of $68.61 billion surpassed the Zacks Consensus Estimate by 3.2%.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 49.7% against the industry’s 4.7% growth in the past year.
Molina Healthcare reported fourth-quarter 2021 adjusted earnings of $2.88 per share, beating the Zacks Consensus Estimate of $2.82. Total revenues of $7,409 million beat the consensus mark of $7,126 million.
Molina Healthcare has a long-term earnings growth rate of 18.8%. MOH has gained 42.7% compared with the industry’s 43.2% increase over the past year.