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Inogen (INGN) Affirms Outlook and Shuffles Top Management
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Goleta, CA-based Inogen, Inc. (INGN - Free Report) reiterated its fiscal 2016 outlook and appointed a new President cum Chief Executive Officer. The company also shuffled its top management. The markets reacted positively to these changes as evident by the company’s shares gaining almost 2.1% on Dec 6.
We note that Inogen represents a positive year-to-date return of almost 61.64%, higher than the Zacks categorized Medical Instruments sub-industry’s negative return of roughly 2.87% and the S&P 500’s return of almost 8.23%.
Meanwhile, the estimate revision trend seems favorable for the stock with two estimates moving up in the last two months. Notably, the current year estimates for the stock improved by a penny to 62 cents per share over the last one month. We feel the affirming the outlook for fiscal 2016 and the managerial changes will continue the positive trend.
Inogen reaffirmed its fiscal 2016 revenue guidance range of $194 million to $198 million, which represents year-over-year growth of 22.0% to 24.5%. The company also reiterated its fiscal 2016 net income estimate range of $12.5 million to $14.5 million, representing 7.9% to 25.2% growth over 2015. Adjusted net income is expected in the range of $12.5 million to $14.5 million, representing 24.8% to 44.8% growth over 2015. The company continues to expect adjusted EBITDA of $37.5 million to $39.5 million, representing an increase of 16.1% to 22.3% over 2015.
The company appointed Scott Wilkinson as its new President and Chief Executive Officer, effective Mar 1, 2017. Wilkinson will also join the board of directors on Jan 1, 2017. He will succeed Raymond Huggenberger. Wilkinson currently oversees Inogen's global commercial, manufacturing, service, research and development, technical and support operations. Inogen also announced that Scott Beardsley has been appointed to Inogen's board. With the appointments of Wilkinson and Beardsley, the board will expand from six to eight members. Additionally, Inogen announced that Byron Myers, VP, Marketing will be promoted to EVP, Sales & Marketing, effective Jan 1, 2017.
Key Catalysts
Inogen is gaining prominence in the market with its ‘direct-to-consumer approach’. Per management, Inogen unifies ‘direct-to-consumer play’ and ‘direct-to-consumer care’ into one business model, enhancing the ease of the home medical equipment (HME) community.
Inogen's unique direct-to-customer business model, innovative product line and growing patient base are the key catalysts in our view. New products like Inogen One G4 and the upgraded Inogen One G3 are expected to drive growth further.
The high adoption rate of portable oxygen containers (POCs) among traditional HME providers is also likely to propel the company’s revenues.
Inogen reported a better-than-expected third quarter of 2016 with revenues and adjusted earnings beating the Zacks Consensus Estimate. Even on a year-over-year basis, the company registered stupendous top- and bottom-line growth.
The company witnessed solid sales in Europe in the last reported quarter. In fact, Europe represented 90.8% of international sales in the third quarter of 2016, boosting business-to-business revenues.
Zacks Rank & Key Picks
Currently, Inogen has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50.4%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 1.2% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 46.7%.
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Inogen (INGN) Affirms Outlook and Shuffles Top Management
Goleta, CA-based Inogen, Inc. (INGN - Free Report) reiterated its fiscal 2016 outlook and appointed a new President cum Chief Executive Officer. The company also shuffled its top management. The markets reacted positively to these changes as evident by the company’s shares gaining almost 2.1% on Dec 6.
We note that Inogen represents a positive year-to-date return of almost 61.64%, higher than the Zacks categorized Medical Instruments sub-industry’s negative return of roughly 2.87% and the S&P 500’s return of almost 8.23%.
Meanwhile, the estimate revision trend seems favorable for the stock with two estimates moving up in the last two months. Notably, the current year estimates for the stock improved by a penny to 62 cents per share over the last one month. We feel the affirming the outlook for fiscal 2016 and the managerial changes will continue the positive trend.
Inogen reaffirmed its fiscal 2016 revenue guidance range of $194 million to $198 million, which represents year-over-year growth of 22.0% to 24.5%. The company also reiterated its fiscal 2016 net income estimate range of $12.5 million to $14.5 million, representing 7.9% to 25.2% growth over 2015. Adjusted net income is expected in the range of $12.5 million to $14.5 million, representing 24.8% to 44.8% growth over 2015. The company continues to expect adjusted EBITDA of $37.5 million to $39.5 million, representing an increase of 16.1% to 22.3% over 2015.
The company appointed Scott Wilkinson as its new President and Chief Executive Officer, effective Mar 1, 2017. Wilkinson will also join the board of directors on Jan 1, 2017. He will succeed Raymond Huggenberger. Wilkinson currently oversees Inogen's global commercial, manufacturing, service, research and development, technical and support operations. Inogen also announced that Scott Beardsley has been appointed to Inogen's board. With the appointments of Wilkinson and Beardsley, the board will expand from six to eight members. Additionally, Inogen announced that Byron Myers, VP, Marketing will be promoted to EVP, Sales & Marketing, effective Jan 1, 2017.
Key Catalysts
Inogen is gaining prominence in the market with its ‘direct-to-consumer approach’. Per management, Inogen unifies ‘direct-to-consumer play’ and ‘direct-to-consumer care’ into one business model, enhancing the ease of the home medical equipment (HME) community.
Inogen's unique direct-to-customer business model, innovative product line and growing patient base are the key catalysts in our view. New products like Inogen One G4 and the upgraded Inogen One G3 are expected to drive growth further.
The high adoption rate of portable oxygen containers (POCs) among traditional HME providers is also likely to propel the company’s revenues.
INOGEN INC Price
INOGEN INC Price | INOGEN INC Quote
Inogen reported a better-than-expected third quarter of 2016 with revenues and adjusted earnings beating the Zacks Consensus Estimate. Even on a year-over-year basis, the company registered stupendous top- and bottom-line growth.
The company witnessed solid sales in Europe in the last reported quarter. In fact, Europe represented 90.8% of international sales in the third quarter of 2016, boosting business-to-business revenues.
Zacks Rank & Key Picks
Currently, Inogen has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50.4%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 1.2% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 46.7%.
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>>