We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Inogen (INGN) Q4 Earnings Beat Estimates, Revenues Lag
Read MoreHide Full Article
Inogen, Inc. (INGN - Free Report) incurred an adjusted loss per share of 57 cents for fourth-quarter 2022, narrower than an adjusted loss per share of 88 cents in the year-ago period. The figure was also narrower than the Zacks Consensus Estimate of a loss of 60 cents per share.
Our projection of adjusted loss per share was $1.15.
GAAP loss per share for the quarter was $2.47, wider than the year-earlier loss of $1.01 per share.
Full-year adjusted loss per share was $1.15 against adjusted earnings per share (EPS) of 8 cents at the end of the comparable 2021 period. The figure was also narrower than the Zacks Consensus Estimate of a loss of $1.79 per share.
Our projection of full-year adjusted loss was $1.73 per share.
Revenues in Detail
Inogen registered revenues of $88.1 million for the fourth quarter, up 15.3% year over year. However, the figure lagged the Zacks Consensus Estimate by 0.6%.
On a constant-currency basis, total revenues for the reported quarter increased 17.7%.
Fourth-quarter revenues compare to our estimate of $87.2 million.
Per management, the year-over-year uptick in the top line was primarily driven by growth in domestic business-to-business sales and rental revenue. However, this was partially offset by lower direct-to-consumer sales.
Full-year revenues were $377.2 million, reflecting a 5.4% improvement from the comparable 2021 period. However, the figure topped the Zacks Consensus Estimate by 0.03%.
On a constant-currency basis, total revenues for the full year increased 6.9%.
Our projection of full-year revenues was $376.4 million.
Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $14.9 million, up 14.4% from the year-ago period. This figure compares to our Rental revenues’ fourth-quarter projection of $14.5 million.
Sales revenues were $73.2 million, up 15.5% from the prior-year quarter. This figure compares to our Sales revenues’ fourth-quarter projection of $72.7 million.
Revenues by Region & Category
Domestic business-to-business sales for fourth-quarter 2022 amounted to $27.2 million, up 164.6% on a year-over-year basis.
International business-to-business sales for the reported quarter amounted to $20.7 million, up 3.1% year over year on a reported basis. This primarily resulted from Inogen’s ability to commercialize its new product, Rove 6, in select countries in Europe following the receipt of the EU MDR (Medical Devices Regulation) certificate in December 2022.
Domestic direct-to-consumer sales decreased 23.4% year over year to $25.3 million for the quarter, primarily due to lower volumes resulting from fewer inside sales representatives and a higher mix of un-tenures sales reps compared to the prior period.
These compare to our projections of fourth-quarter revenues of $16.8 million, $18.8 million and $37.1 million, respectively.
For the quarter under review, Inogen’s gross profit fell 23.6% from the year-ago period to $29.5 million. The gross margin contracted a huge 1705 basis points to 33.5%.
We had projected a gross margin of 27.8% for the fourth quarter.
Sales and marketing expenses fell 3.7% from the year-ago quarter to $28.6 million. Research and development expenses went up 26.7% year over year to $5.9 million, while general and administrative expenses declined 88.4% to $1.3 million. Adjusted operating expenses of $35.8 million decreased 20.9% year over year.
Adjusted operating loss totaled $6.3 million compared with the prior-year quarter’s adjusted operating loss of $6.7 million.
Financial Position
Inogen exited full-year 2022 with cash and cash equivalents of $187 million compared with $235.5 million at the end of 2021.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities at the end of full-year 2022 was $37.5 million against net cash provided by operating activities of $23.6 million a year ago.
Guidance
Inogen has not provided any outlook for the first quarter of 2023 or the full year.
However, the company expects its total revenues for the full-year 2023 to grow in the low to mid-single digits.
Our Take
Inogen exited the fourth quarter of 2022 with better-than-expected earnings. The robust year-over-year uptick in the overall top line as well as rental and sales revenues is impressive. Strength in domestic business-to-business and international business-to-business sales are encouraging.
On the earnings call, management confirmed that it plans to drive further differentiation for Inogen and chronic obstructive pulmonary disease with anticipated new product launches in 2023 in the United States and Europe after securing the necessary regulatory clearances. The company also confirmed that in December 2022, Inogen received the FDA’s clearance for the Rove 4, and the company anticipates the U.S. launch to be in the back half of 2023. These developments look promising for the company. Inogen’s meaningful progress with the new Rove 6 device also raises our optimism.
Yet, dismal year-over-year bottom-line performances are worrying. A decline in domestic direct-to-consumer sales for the quarter is concerning as well. The contraction of gross margin is worrying. Inogen continued to incur operating losses for the fourth quarter, which does not bode well. Sustained supply-chain headwinds and cost inflation are other areas of concern.
Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
BD, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2023 adjusted EPS of $2.98, beating the Zacks Consensus Estimate by 11.6%. Revenues of $4.59 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BD has a long-term estimated growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average being 6.5%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Inogen (INGN) Q4 Earnings Beat Estimates, Revenues Lag
Inogen, Inc. (INGN - Free Report) incurred an adjusted loss per share of 57 cents for fourth-quarter 2022, narrower than an adjusted loss per share of 88 cents in the year-ago period. The figure was also narrower than the Zacks Consensus Estimate of a loss of 60 cents per share.
Our projection of adjusted loss per share was $1.15.
GAAP loss per share for the quarter was $2.47, wider than the year-earlier loss of $1.01 per share.
Full-year adjusted loss per share was $1.15 against adjusted earnings per share (EPS) of 8 cents at the end of the comparable 2021 period. The figure was also narrower than the Zacks Consensus Estimate of a loss of $1.79 per share.
Our projection of full-year adjusted loss was $1.73 per share.
Revenues in Detail
Inogen registered revenues of $88.1 million for the fourth quarter, up 15.3% year over year. However, the figure lagged the Zacks Consensus Estimate by 0.6%.
On a constant-currency basis, total revenues for the reported quarter increased 17.7%.
Fourth-quarter revenues compare to our estimate of $87.2 million.
Per management, the year-over-year uptick in the top line was primarily driven by growth in domestic business-to-business sales and rental revenue. However, this was partially offset by lower direct-to-consumer sales.
Full-year revenues were $377.2 million, reflecting a 5.4% improvement from the comparable 2021 period. However, the figure topped the Zacks Consensus Estimate by 0.03%.
On a constant-currency basis, total revenues for the full year increased 6.9%.
Our projection of full-year revenues was $376.4 million.
Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $14.9 million, up 14.4% from the year-ago period. This figure compares to our Rental revenues’ fourth-quarter projection of $14.5 million.
Sales revenues were $73.2 million, up 15.5% from the prior-year quarter. This figure compares to our Sales revenues’ fourth-quarter projection of $72.7 million.
Revenues by Region & Category
Domestic business-to-business sales for fourth-quarter 2022 amounted to $27.2 million, up 164.6% on a year-over-year basis.
International business-to-business sales for the reported quarter amounted to $20.7 million, up 3.1% year over year on a reported basis. This primarily resulted from Inogen’s ability to commercialize its new product, Rove 6, in select countries in Europe following the receipt of the EU MDR (Medical Devices Regulation) certificate in December 2022.
Domestic direct-to-consumer sales decreased 23.4% year over year to $25.3 million for the quarter, primarily due to lower volumes resulting from fewer inside sales representatives and a higher mix of un-tenures sales reps compared to the prior period.
These compare to our projections of fourth-quarter revenues of $16.8 million, $18.8 million and $37.1 million, respectively.
Inogen, Inc. Price, Consensus and EPS Surprise
Inogen, Inc. price-consensus-eps-surprise-chart | Inogen, Inc. Quote
Margins
For the quarter under review, Inogen’s gross profit fell 23.6% from the year-ago period to $29.5 million. The gross margin contracted a huge 1705 basis points to 33.5%.
We had projected a gross margin of 27.8% for the fourth quarter.
Sales and marketing expenses fell 3.7% from the year-ago quarter to $28.6 million. Research and development expenses went up 26.7% year over year to $5.9 million, while general and administrative expenses declined 88.4% to $1.3 million. Adjusted operating expenses of $35.8 million decreased 20.9% year over year.
Adjusted operating loss totaled $6.3 million compared with the prior-year quarter’s adjusted operating loss of $6.7 million.
Financial Position
Inogen exited full-year 2022 with cash and cash equivalents of $187 million compared with $235.5 million at the end of 2021.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash used in operating activities at the end of full-year 2022 was $37.5 million against net cash provided by operating activities of $23.6 million a year ago.
Guidance
Inogen has not provided any outlook for the first quarter of 2023 or the full year.
However, the company expects its total revenues for the full-year 2023 to grow in the low to mid-single digits.
Our Take
Inogen exited the fourth quarter of 2022 with better-than-expected earnings. The robust year-over-year uptick in the overall top line as well as rental and sales revenues is impressive. Strength in domestic business-to-business and international business-to-business sales are encouraging.
On the earnings call, management confirmed that it plans to drive further differentiation for Inogen and chronic obstructive pulmonary disease with anticipated new product launches in 2023 in the United States and Europe after securing the necessary regulatory clearances. The company also confirmed that in December 2022, Inogen received the FDA’s clearance for the Rove 4, and the company anticipates the U.S. launch to be in the back half of 2023. These developments look promising for the company. Inogen’s meaningful progress with the new Rove 6 device also raises our optimism.
Yet, dismal year-over-year bottom-line performances are worrying. A decline in domestic direct-to-consumer sales for the quarter is concerning as well. The contraction of gross margin is worrying. Inogen continued to incur operating losses for the fourth quarter, which does not bode well. Sustained supply-chain headwinds and cost inflation are other areas of concern.
Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
BD, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2023 adjusted EPS of $2.98, beating the Zacks Consensus Estimate by 11.6%. Revenues of $4.59 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BD has a long-term estimated growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average being 6.5%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.