It has been about a month since the last earnings report for Inogen (INGN Quick QuoteINGN - Free Report) . Shares have added about 26.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Inogen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Inogen Q4 Earnings Miss Estimates, Gross Margin Improves

Inogen reported an adjusted loss per share of 83 cents for fourth-quarter 2023, which is wider than the adjusted loss per share of 57 cents in the year-ago period. The Zacks Consensus Estimate was pegged at a loss of 65 cents per share.

GAAP loss per share for the quarter was $1.14, narrower than the year-ago loss of $2.47 per share.

Revenues in Detail

Inogen registered revenues of $75.9 million for the fourth quarter, down 13.8% year over year. The figure missed the Zacks Consensus Estimate by 2.8%.

On a constant-currency basis, total revenues for the reported quarter decreased 14.3%.

Per management, the year-over-year decrease in the top line primarily resulted from lower domestic business-to-business sales and lower direct-to-consumer revenues. However, this was partially offset by strong growth in rental and international business-to-business sales.

Full-Year Results

Inogen recorded total revenues of $315.7 million in 2023, down 16.3% year over year. In 2023, the adjusted loss per share was $2.08 compared with $1.15 in the prior-year quarter.

Segmental Details

Inogen derives revenues from two sources — rental and sales.

Rental revenues for the reported quarter grossed $16.5 million, up 10.6% from the year-ago period. Per management, an increase in the total number of rental patients on service resulted in the upside.

Sales revenues were $59.4 million, down 18.8% from the prior-year quarter.

Revenues by Region & Category

Domestic business-to-business sales for fourth-quarter 2023 amounted to $18.1 million, down 33.6% on a year-over-year basis.

International business-to-business sales for the reported quarter amounted to $21.5 million, up 4.0% year over year on a reported basis and 2.6% on a constant-currency basis.

Domestic direct-to-consumer sales decreased 21.6% year over year to $19.8 million for the fourth quarter.

Margins

For the quarter under review, Inogen’s gross profit fell 4.5% from the year-ago period to $28.2 million. However, the total gross margin expanded 360 basis points to 37.1%.

Sales and marketing expenses decreased 10.3% from the year-ago quarter to $25.7 million, while R&D expenses increased 13.1% year over year to $6.7 million. General and administrative expenses were $24.7 million compared with $1.3 million in the year-ago quarter. The significant increase is likely due to the Physio-Assist acquisition, which was completed in September 2023.Total operating expenses of $57.1 million decreased 35.0% year over year. The decrease was primarily due to the loss on disposal of an intangible asset of $52.2 million in the prior-year period, partially offset by the change in fair value of earn-out liabilities and certain onetime costs related to CEO transition and bad debt expense.

Total operating loss totaled $29.0 million compared with the prior-year quarter’s operating loss of $58.5 million.

Financial Position

Inogen exited fourth-quarter 2023 with cash and cash equivalents of $128.5 million compared with $138 million at the third-quarter end.

The company ended the quarter with no debt on its balance sheet.

Cumulative net cash used in operating activities at the end of fourth-quarter 2023 was $3.2 million compared with $37.5 million in the year-ago period.

Guidance

Inogen has provided guidance for the first quarter of 2024.

For the first quarter of 2024, the company expects its total revenues between $73 million and $74 million. The Zacks Consensus Estimate currently stands at $80.8 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -9.09% due to these changes.

VGM Scores

At this time, Inogen has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Inogen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Inogen belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Fresenius (FMS Quick QuoteFMS - Free Report) , has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.

Fresenius reported revenues of $5.37 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $0.47 for the same period compares with $0.44 a year ago.

For the current quarter, Fresenius is expected to post earnings of $0.24 per share, indicating a change of -14.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -4% over the last 30 days.

Fresenius has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.