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Omnicell (OMCL) Earnings & Revenues Beat Estimates in Q2
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Omnicell, Inc. (OMCL - Free Report) reported adjusted earnings per share (EPS) of 46 cents in second-quarter 2018, beating the Zacks Consensus Estimate of 40 cents.
Earnings improved from the year-ago 33 cents and surpassed the company’s guided range of 36-42 cents.
Revenues in Detail
Adjusted revenues in the second quarter increased 4% year over year to $188.7 million, slightly above the Zacks Consensus Estimate of $188.5 million.
On a segmental basis, Automation and Analytics revenues increased 6.6% year over year in the second quarter to $158.4 million.
However, revenues at the Medication Adherence segment declined 6.8% year over year to $30.3 million.
Operational Update
Omnicell's gross profit during the reported quarter increased 13.7% to $88.8 million. Gross margin expanded 390 basis points (bps) to 47.1%.
SG&A expenses in the second quarter increased 6.5% year over year to $65.9 million. Research and development expenses contracted 8.3% year over year to $15.5 million. Operating expenses were $81.5 million in the second quarter, up 3.4% year over year.
Operating profit in the quarter totaled $7.3 million against a loss of $0.7 million in the year-ago quarter.
Financial Update
Omnicell exited second-quarter 2018 with cash and cash equivalents of $46.2 million, compared with $43.8 million at the end of first-quarter 2018.
2018 Guidance
For the third quarter of 2018, Omnicell expects adjusted revenues in the band of $200-$206 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The company expects third-quarter 2018 adjusted earnings per share in the band of 52-57 cents. The Zacks Consensus Estimate for third-quarter revenues is pegged at $201.2 million and earnings per share at 55 cents. Both the estimates are pegged within the guided range.
For 2018, Omnicell raised the product bookings to the range of $630-$665 million compared with the previously provided range of $625-$660 million. However, the company continues to expect adjusted revenues in the band of $780-$800 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The Zacks Consensus Estimate for full-year revenues stands at $787.5 million, within the company’s guided range.
Omnicell raised the low end of the adjusted earnings guidance for 2018. The company now expects adjusted EPS in the range of $1.90-$2.05 compared with the previously provided band of $1.85-$2.05. The Zacks Consensus Estimate for full-year earnings is pegged at $1.97, within the company’s guided range.
Our Take
Omnicell’s second-quarter 2018 performance was impressive. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain from recent launches, strategic partnerships and digital transformation.
However, a tough competitive landscape acts as a dampener.
Zacks Rank & Key Picks
Omnicell has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector which reported solid results this earnings season are Intuitive Surgical (ISRG - Free Report) , Abbott (ABT - Free Report) and Align Technology, Inc. (ALGN - Free Report) . While Intuitive Surgical and Align Technology sport a Zacks Rank #1 (Strong Buy), Abbott carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported second-quarter 2018 adjusted EPS of $2.76, which beat the Zacks Consensus Estimate of $2.48. Revenues totaled $909.3 million, also surpassing the consensus estimate of $870 million.
Align Technology posted second-quarter 2018 adjusted EPS of $1.30, steering past the Zacks Consensus Estimate of $1.09. Revenues came in at $490.3 million, beating the consensus mark of $462.9 million.
Abbott reported second-quarter 2018 adjusted EPS of 73 cents, which trumped the Zacks Consensus Estimate of 71 cents. Revenues of $7.77 billion edged past the Zacks Consensus Estimate of $7.73 billion.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Omnicell (OMCL) Earnings & Revenues Beat Estimates in Q2
Omnicell, Inc. (OMCL - Free Report) reported adjusted earnings per share (EPS) of 46 cents in second-quarter 2018, beating the Zacks Consensus Estimate of 40 cents.
Earnings improved from the year-ago 33 cents and surpassed the company’s guided range of 36-42 cents.
Revenues in Detail
Adjusted revenues in the second quarter increased 4% year over year to $188.7 million, slightly above the Zacks Consensus Estimate of $188.5 million.
On a segmental basis, Automation and Analytics revenues increased 6.6% year over year in the second quarter to $158.4 million.
However, revenues at the Medication Adherence segment declined 6.8% year over year to $30.3 million.
Operational Update
Omnicell's gross profit during the reported quarter increased 13.7% to $88.8 million. Gross margin expanded 390 basis points (bps) to 47.1%.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise | Omnicell, Inc. Quote
SG&A expenses in the second quarter increased 6.5% year over year to $65.9 million. Research and development expenses contracted 8.3% year over year to $15.5 million. Operating expenses were $81.5 million in the second quarter, up 3.4% year over year.
Operating profit in the quarter totaled $7.3 million against a loss of $0.7 million in the year-ago quarter.
Financial Update
Omnicell exited second-quarter 2018 with cash and cash equivalents of $46.2 million, compared with $43.8 million at the end of first-quarter 2018.
2018 Guidance
For the third quarter of 2018, Omnicell expects adjusted revenues in the band of $200-$206 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The company expects third-quarter 2018 adjusted earnings per share in the band of 52-57 cents. The Zacks Consensus Estimate for third-quarter revenues is pegged at $201.2 million and earnings per share at 55 cents. Both the estimates are pegged within the guided range.
For 2018, Omnicell raised the product bookings to the range of $630-$665 million compared with the previously provided range of $625-$660 million. However, the company continues to expect adjusted revenues in the band of $780-$800 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The Zacks Consensus Estimate for full-year revenues stands at $787.5 million, within the company’s guided range.
Omnicell raised the low end of the adjusted earnings guidance for 2018. The company now expects adjusted EPS in the range of $1.90-$2.05 compared with the previously provided band of $1.85-$2.05. The Zacks Consensus Estimate for full-year earnings is pegged at $1.97, within the company’s guided range.
Our Take
Omnicell’s second-quarter 2018 performance was impressive. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain from recent launches, strategic partnerships and digital transformation.
However, a tough competitive landscape acts as a dampener.
Zacks Rank & Key Picks
Omnicell has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector which reported solid results this earnings season are Intuitive Surgical (ISRG - Free Report) , Abbott (ABT - Free Report) and Align Technology, Inc. (ALGN - Free Report) . While Intuitive Surgical and Align Technology sport a Zacks Rank #1 (Strong Buy), Abbott carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported second-quarter 2018 adjusted EPS of $2.76, which beat the Zacks Consensus Estimate of $2.48. Revenues totaled $909.3 million, also surpassing the consensus estimate of $870 million.
Align Technology posted second-quarter 2018 adjusted EPS of $1.30, steering past the Zacks Consensus Estimate of $1.09. Revenues came in at $490.3 million, beating the consensus mark of $462.9 million.
Abbott reported second-quarter 2018 adjusted EPS of 73 cents, which trumped the Zacks Consensus Estimate of 71 cents. Revenues of $7.77 billion edged past the Zacks Consensus Estimate of $7.73 billion.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>