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Omnicell, Inc. (OMCL - Free Report) reported adjusted earnings per share (EPS) of $1.00 for third-quarter 2022, down 7.4% from the year-ago quarter’s figure of $1.08. The metric, however, exceeded the Zacks Consensus Estimate by 6.4%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS was 37 cents in the quarter under review, down 39.3% from EPS of 61 cents in the year-ago quarter.
Revenues in Detail
Third-quarter revenues of $348 million rose 17% year over year on a reported basis. However, the figure missed the Zacks Consensus Estimate by 4%. Strong demand for Omnicell’s mission-critical medication management solutions, as well as the contribution of revenues from recent acquisitions resulted in year-over-year growth in the top line.
Segmental Details
On a segmental basis, product revenues rose 15.2% year over year to $246.6 million in the reported quarter.
Service and other revenues climbed 23.1% year over year to $101.5 million.
Operational Update
In the quarter under review, the company-adjusted gross margin contracted 360 basis points (bps) to 47.5%.
Company-adjusted operating expense was $116.5 million, up 19.7% year over year. Company-adjusted operating margin of 14% contracted 430 bps year over year in the reported quarter.
Financial Update
Omnicell exited the third quarter of 2022, with cash and cash equivalents of $266.4 million compared with $244.9 million at the end of the second quarter of 2022.
The cumulative net cash used in operating activities at the end of the third quarter was $4.4 million, compared with a cumulative net cash inflow of $172.2 million in the year-ago quarter.
Guidance for Q4 & 2022
Omnicell provided its guidance for the fourth quarter of 2022, taking into consideration expected contributions and integration costs of recent acquisitions and the anticipated impact of the ongoing inflationary environment and the expected impact of current macro-economic headwinds. The company has also updated its outlook for full-year 2022.
For the fourth quarter of 2022, Omnicell expects revenues between $285 million and $295 million. The Zacks Consensus Estimate for the metric is pegged at $287.6 million.
Fourth-quarter adjusted EPS is envisioned in the band of 5 to 15 cents. The Zacks Consensus Estimate for the same is pegged at 73 cents.
For the full year, revenue estimates have been reduced to the band of $1.284 billion to $1.294 billion (the earlier range was $1.385 billion to $1.410). The Zacks Consensus Estimate for the same stands at $1.31 billion.
The company slashed its full-year adjusted EPS estimates to the range of $2.73-$2.83 (previously it was $3.85-$4.05). The Zacks Consensus Estimate for the metric is pegged at $3.49.
Our Take
Omnicell’s Q3 earnings exceeded the Zacks Consensus Estimate while revenues missed the mark.Contraction in gross margin is discouraging. Mounting operating expenses resulted in operating loss in the quarter, placing significant pressure on the bottom line. The persistent inflationary headwinds, primarily due to semiconductor and other components costs, continue to pose challenges and induced the company to slash its 2022 guidance.
On a positive note, strong demand for Omnicell’s mission-critical medication management solutions, as well as the contribution of revenues from recent acquisitions resulted in year-over-year growth in the top line.
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 quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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Omnicell (OMCL) Q3 Earnings Beat Estimates, Guidance Cut
Omnicell, Inc. (OMCL - Free Report) reported adjusted earnings per share (EPS) of $1.00 for third-quarter 2022, down 7.4% from the year-ago quarter’s figure of $1.08. The metric, however, exceeded the Zacks Consensus Estimate by 6.4%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.
On a GAAP basis, EPS was 37 cents in the quarter under review, down 39.3% from EPS of 61 cents in the year-ago quarter.
Revenues in Detail
Third-quarter revenues of $348 million rose 17% year over year on a reported basis. However, the figure missed the Zacks Consensus Estimate by 4%. Strong demand for Omnicell’s mission-critical medication management solutions, as well as the contribution of revenues from recent acquisitions resulted in year-over-year growth in the top line.
Segmental Details
On a segmental basis, product revenues rose 15.2% year over year to $246.6 million in the reported quarter.
Service and other revenues climbed 23.1% year over year to $101.5 million.
Operational Update
In the quarter under review, the company-adjusted gross margin contracted 360 basis points (bps) to 47.5%.
Company-adjusted operating expense was $116.5 million, up 19.7% year over year. Company-adjusted operating margin of 14% contracted 430 bps year over year in the reported quarter.
Financial Update
Omnicell exited the third quarter of 2022, with cash and cash equivalents of $266.4 million compared with $244.9 million at the end of the second quarter of 2022.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. Quote
The cumulative net cash used in operating activities at the end of the third quarter was $4.4 million, compared with a cumulative net cash inflow of $172.2 million in the year-ago quarter.
Guidance for Q4 & 2022
Omnicell provided its guidance for the fourth quarter of 2022, taking into consideration expected contributions and integration costs of recent acquisitions and the anticipated impact of the ongoing inflationary environment and the expected impact of current macro-economic headwinds. The company has also updated its outlook for full-year 2022.
For the fourth quarter of 2022, Omnicell expects revenues between $285 million and $295 million. The Zacks Consensus Estimate for the metric is pegged at $287.6 million.
Fourth-quarter adjusted EPS is envisioned in the band of 5 to 15 cents. The Zacks Consensus Estimate for the same is pegged at 73 cents.
For the full year, revenue estimates have been reduced to the band of $1.284 billion to $1.294 billion (the earlier range was $1.385 billion to $1.410). The Zacks Consensus Estimate for the same stands at $1.31 billion.
The company slashed its full-year adjusted EPS estimates to the range of $2.73-$2.83 (previously it was $3.85-$4.05). The Zacks Consensus Estimate for the metric is pegged at $3.49.
Our Take
Omnicell’s Q3 earnings exceeded the Zacks Consensus Estimate while revenues missed the mark.Contraction in gross margin is discouraging. Mounting operating expenses resulted in operating loss in the quarter, placing significant pressure on the bottom line. The persistent inflationary headwinds, primarily due to semiconductor and other components costs, continue to pose challenges and induced the company to slash its 2022 guidance.
On a positive note, strong demand for Omnicell’s mission-critical medication management solutions, as well as the contribution of revenues from recent acquisitions resulted in year-over-year growth in the top line.
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 quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.