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Inogen (INGN) Down 11.5% Since Last Earnings Report: Can It Rebound?

·3 min read

It has been about a month since the last earnings report for Inogen (INGN). Shares have lost about 11.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Inogen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Inogen Q1 Loss Narrower Than Expected, Revenues Beat

Inogen reported first-quarter 2021 loss per share of 3 cents, narrower than the Zacks Consensus Estimate of a loss of 28 cents as well as the year-ago loss of 7 cents.

Revenues came in at $86.9 million, which beat the Zacks Consensus Estimate by 0.8%. On a year-over-year basis, the top line, however, dropped 1.8%, mainly due to the impact of the COVID-19 pandemic.

Segmental Details

Rental revenues grossed $9.9 million, up 84.2% from the year-ago period.

Sales revenues came in at $77.1 million, down 7.2%.

Revenues by Region & Category

Business-to-business revenues in the United States amounted to $30.7 million, up 11.6% on a year-over-year basis. Per management, this upside was driven by solid demand for POCs for COVID-19 patients upon hospital discharge.

Internationally, this segment recorded revenues of $15.7 million, down 21.7% year over year and 23% at CER. Per management, the decline was mainly due to the persistence of the pandemic with recurrent lockdowns in many European nations as well as reduced operational capacity of certain European respiratory assessment centers.

Direct-to-consumer revenues fell 13.8% year over year to $30.6 million in the quarter, attributable to lower average inside sales representative headcount stemming from COVID-19 adversity.

Margins

In the first quarter, gross profit was $39.9 million, up 3.9% year over year. Gross margin came in at 45.9%, up a significant 251 basis points.

Total operating costs came in at $42 million, up 3.6%.

Loss from operations in the quarter was $2.1 million, narrower than the year-ago quarter’s operating loss of $2.2 million.

Cash Position

The company exited the first quarter of 2021 with cash and cash equivalents of $220 million compared with $211.9 million at the end of the fourth quarter of 2020.

Guidance

Due to the uncertainty emanating from the impact and scope of the COVID-19 pandemic, the company could not issue full-year outlook yet.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 34.34% due to these changes.

VGM Scores

At this time, Inogen has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Inogen has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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