Inogen, Inc. (INGN Quick QuoteINGN - Free Report) recently announced preliminary revenues for the second quarter of 2023. The preliminary results drove down the shares of the company by 2.1% in the after-hours trading session.

Inogen is scheduled to release second-quarter results on Aug 7 after the closing bell.

Per the preliminary report, second-quarter 2023 revenues are estimated to be within $83 million to $84 million. The Zacks Consensus Estimate of $93.9 million lies above the preliminary figure.

Per management, in the to-be-reported quarter, revenues were lower than management’s expectations in U.S. and International business-to-business channels. Also, lower revenues were generated from Inogen’s direct-to-consumer channel despite continued productivity gains. However, this performance was partially offset by growth in rental revenues, thus reflecting the company’s strategic focus on U.S. prescribers.

Quarterly Performance So Far

In first-quarter 2023, Inogen registered a solid year-over-year uptick in rental revenues and domestic business-to-business sales. Per management, rental revenues are also expected to be strong in the second quarter. In first-quarter 2023, management confirmed that Inogen had increased its total covered lives to approximately 160 million, with the additions of two large private healthcare payers supporting its prescriber channel and overall rental strategy. This is likely to be another contributor to Inogen’s rental revenues in the second quarter. This raises our optimism.

However, management’s expectations of lower revenues from Inogen’s U.S. and International business-to-business channels and direct-to-consumer channels raise our apprehensions about the stock.

Price Performance

Shares of the company have lost 7.5% between Apr 1, 2023 and Jun 30, 2023 against the industry’s 6.7% rise and the S&P 500’s 8.7% growth.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, Inogen carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Becton, Dickinson and Company (BDX Quick QuoteBDX - Free Report) , popularly known as BD, HealthEquity, Inc. (HQY Quick QuoteHQY - Free Report) and Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) .

BD, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.1%. BDX’s earnings surpassed estimates in all the trailing four quarters, with an average of 5.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BD has gained 6.7% compared with the industry’s 11.3% rise between Apr 1, 2023 and Jun 30, 2023.

HealthEquity, flaunting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.

HealthEquity has gained 7.6% against the industry’s 1.9% decline between Apr 1, 2023 and Jun 30, 2023.

Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.

Boston Scientific has gained 8.1% compared with the industry’s 4.5% rise between Apr 1, 2023 and Jun 30, 2023.