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Inogen Stock Gains Following Solid Preliminary Q4 Revenues

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Inogen, Inc. (INGN - Free Report) announced preliminary revenues for the fourth quarter and full year 2024 on Monday. Following the robust preliminary results, the company’s shares gained nearly 11.2% till yesterday’s closing.

The company is scheduled to release fourth-quarter results on Feb. 25.

Per the preliminary report, fourth-quarter 2024 total revenues are estimated to be between $79 million and $80 million, up 4-5% year over year. The Zacks Consensus Estimate of $73.9 million lies below the preliminary figure.

Per the preliminary report, full-year 2024 total revenues are estimated to be between $334.5 million and $335.5 million, up 6% from the comparable 2023 period. The Zacks Consensus Estimate of $329.5 million lies below the preliminary figure.

Notably, INGN’s estimated revenues for the full year exceed its previously announced full year 2024 guidance range of $329 million to $331 million. 

Per management, Inogen’s full-year performance was driven by strong double-digit growth in business-to-business revenue while the company continues to work to stabilize direct-to-consumer revenue with initiatives to enhance overall profitability. This raises our optimism about the stock.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

A Brief Q4 Analysis of Inogen

In October 2024, Inogen commenced the U.S. market release of the Rove 4 Portable Oxygen Concentrator (POC). This is likely to have witnessed a robust product adoption as the versatility of Rove 4 is expected to empower patients with choices that may help them with normal activities of daily living. The fourth-quarter 2024 revenues are likely to have been boosted as a result.

Per management, Inogen returned to revenue growth, improved profitability and disciplined cost management during 2024. The achievements in the quarter included the launch of Rove 4 and the receipt of the FDA’s 510(k) clearance for the SIMEOX 200 Airway Clearance Device (December 2024). This diversified the company’s global product offerings, while continuing to extend its reach and aiming to improve patient outcomes.

On the third quarter of 2024 earnings call in November, Inogen’s management had commented that the uptick in its total revenues was led by strong POC sales through its business-to-business channel, where the company drove strong year-over-year revenue growth for the second consecutive quarter. Management had also commented that INGN continued to expand its relationships with new and existing customers as patients and providers increasingly recognize the benefits that its solutions provide over other oxygen therapies. This strength in POC sales is likely to have continued in the fourth quarter, thereby aiding the overall top line.

On the same call, management stated that although revenues from Inogen’s direct-to-consumer sales channel declined in the third quarter, it is encouraging to witness that this channel is becoming more profitable due to cost structure and careful management. As the company completes its first full year with the smaller team and move into 2025, management anticipates better year-over-year performance. This raises our optimism about the stock’s performance in the fourth quarter.

The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.

INGN’s Price Performance

Shares of the company have lost 4.7% between Oct. 1 and Dec. 31, 2024, compared with the industry’s 4.8% decline. The S&P 500 has gained 3.7% during the same time frame.

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Inogen’s Zacks Rank & Other Key Picks

Currently, INGN carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are Cardinal Health, Inc. (CAH - Free Report) , Cencora, Inc. (COR - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health’s shares have gained 7.2% compared with the industry’s 0.8% growth between Oct. 1 and Dec. 31, 2024.

Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.9%.

Cencora has gained 0.2% against the industry’s 12.7% decline between Oct. 1 and Dec. 31, 2024.

Labcorp, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 8.4%. LH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.9%.

Labcorp’s shares have rallied 4.6% compared with the industry’s 0.8% growth between Oct. 1 and Dec. 31, 2024.


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