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Will Inogen (INGN) Disappoint Investors in Q3 Earnings?
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Inogen Inc. (INGN - Free Report) is scheduled to report third-quarter 2016 results on Nov 3. Last quarter, the company reported earnings of 25 cents per share, beating the Zacks Consensus Estimate of 19 cents.
Notably, the company has beat the Zacks Consensus Estimate in three out of the last four quarters, with an average earnings surprise of 30.81%.
Let us see how things are shaping up for this announcement.
Factors Influencing This Quarter
We believe Inogen’s unique direct-to-customer business model, innovative product portfolio and growing patient base will drive significant top-line growth. Expansion of the company’s direct-to-consumer network and shift to cash sales of systems will boost margins.
However, anticipated changes in Medicare reimbursements will hurt rental revenues, going forward. Moreover, it has been proposed that Medicare patients should take prior authorization for stationary oxygen services. We believe this will delay the process of issuing new systems on a rental basis, which will eventually hurt Inogen's top line.
Overall, the company’s activities during the July–September period were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the third quarter deteriorated to 13 cents from 15 cents per share over the last 90 days.
Our proven model does not conclusively show that Inogen is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Inogen has a -7.69% ESP. This is because the Most Accurate estimate stands at 12 cents and the Zacks Consensus Estimate stand at 13 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Inogen carries a Zacks Rank #4, which decreases the predictive power of ESP. We caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Penumbra, Inc. (PEN - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Invuity, Inc. has an Earnings ESP of +1.61% and a Zacks Rank #2.
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Will Inogen (INGN) Disappoint Investors in Q3 Earnings?
Inogen Inc. (INGN - Free Report) is scheduled to report third-quarter 2016 results on Nov 3. Last quarter, the company reported earnings of 25 cents per share, beating the Zacks Consensus Estimate of 19 cents.
Notably, the company has beat the Zacks Consensus Estimate in three out of the last four quarters, with an average earnings surprise of 30.81%.
Let us see how things are shaping up for this announcement.
Factors Influencing This Quarter
We believe Inogen’s unique direct-to-customer business model, innovative product portfolio and growing patient base will drive significant top-line growth. Expansion of the company’s direct-to-consumer network and shift to cash sales of systems will boost margins.
However, anticipated changes in Medicare reimbursements will hurt rental revenues, going forward. Moreover, it has been proposed that Medicare patients should take prior authorization for stationary oxygen services. We believe this will delay the process of issuing new systems on a rental basis, which will eventually hurt Inogen's top line.
Overall, the company’s activities during the July–September period were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the third quarter deteriorated to 13 cents from 15 cents per share over the last 90 days.
INOGEN INC Price and EPS Surprise
INOGEN INC Price and EPS Surprise | INOGEN INC Quote
Earnings Whispers
Our proven model does not conclusively show that Inogen is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Inogen has a -7.69% ESP. This is because the Most Accurate estimate stands at 12 cents and the Zacks Consensus Estimate stand at 13 cents. Please check our Earnings ESP Filter that enables you find stocks that are expected to come out with earnings surprises.
Zacks Rank: Inogen carries a Zacks Rank #4, which decreases the predictive power of ESP. We caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Glaukos Corporation (GKOS - Free Report) has an Earnings ESP of +100% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra, Inc. (PEN - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Invuity, Inc. has an Earnings ESP of +1.61% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>