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Omnicell (OMCL) Earnings and Revenues Beat Estimates in Q1
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Omnicell, Inc.’s (OMCL - Free Report) first-quarter 2019 adjusted earnings per share (EPS) of 61 cents outpaced the Zacks Consensus Estimate of 41 cents.
Adjusted EPS skyrocketed 110.3% from the year-ago figure and also surpassed the company’s guided range of 38-43 cents.
Revenues in Detail
The Zacks Rank #3 (Hold) company’s adjusted revenues in the first quarter increased 10.9% year over year to $202.5 million. The top line also surpassed the Zacks Consensus Estimate by of $199.4 million.
On a segmental basis, Product revenues increased 11.4% year over year to $145.6 million in the reported quarter.
Moreover, Service and other revenues climbed 9.5% year over year to $56.9 million.
Operational Update
In the quarter under review, Omnicell's adjusted gross profit rose 16.7% to $100.6 million. Adjusted gross margin expanded 250 basis points (bps) to 49.7%.
Adjusted operating profit totaled $26.2 million, up significantly by 78.5% from the prior-year quarter. Adjusted operating margin in the first quarter rose 490 bps to 13%.
SG&A expenses escalated 4.6% year over year to $68.3 million. However, research and development expenses declined 2.8% year over year to $16.1 million. Adjusted operating expenses were $74.4 million in the first quarter, up 4% year over year.
Financial Update
Omnicell exited the first quarter with cash and cash equivalents of $77.2 million compared with $67.2 million at the end of 2018.
Guidance
For the second quarter of 2019, Omnicell expects adjusted revenues between $211 million and $217 million. The Zacks Consensus Estimate stands at $212.7 million, within the guided range.
On an adjusted basis, product revenues are expected between $153 million and $158 million, while service revenues are projected within $58-$59 million.
Second-quarter adjusted EPS is expected in the band of 61-66 cents. The Zacks Consensus Estimate stands at 56 cents, below the projected range.
For 2019, adjusted revenues are expected within $880-$900 million. The Zacks Consensus Estimate stands at $892.3 million, within the guided range.
Product revenues for the full year are projected within $652-$668 million, while service revenues are expected between $228 million and $232 million. Moreover, product bookings are anticipated in the $745-$780 million range.
Adjusted EPS are expected between $2.62 and $2.82 for 2019. The Zacks Consensus Estimate stands at $2.52, below the guided range.
Our Take
Omnicell delivered impressive first-quarter 2019 results. The company continued to see solid segmental contributions. Its solid year-over-year EPS growth is a major positive. Moreover, Omnicell inked various deals for both the XR2 and the IVX Workflow products. It issued an upbeat guidance for second-quarter and 2019.
Currently, the company is working on product innovation through R&D. Moving ahead, Omnicell is expected to gain traction from product launches, strategic partnerships and digital transformation. Expansion of gross and operating margins in the quarter is encouraging as well.
However, a tough competitive landscape acts as a dampener.
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, which outpaced the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
Abbott’s first-quarter 2019 adjusted earnings came in at 63 cents per share, which exceeded the Zacks Consensus Estimate by 3.3%. First-quarter worldwide sales of $7.54 billion surpassed the Zacks Consensus Estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which outshined the Zacks Consensus Estimate of 54 cents. Revenues of $218.4 million beat the Zacks Consensus Estimate of $213 million.
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