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Inogen (INGN) Earnings and Revenues Surpass Estimates in Q3

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·4 min read
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  • INGN
  • TMO
  • ANGO
  • WST

Inogen, Inc. INGN reported third-quarter 2021 adjusted earnings per share (EPS) of 53 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 29 cents. The company reported a loss of 8 cents in the year-ago quarter.

GAAP EPS in the quarter was 54 cents, against a loss of 8 cents in the prior-year quarter.

Revenue Details

Revenues were $93.1 million, which beat the Zacks Consensus Estimate by 9%. On a year-over-year basis, the top line improved 25.3%, driven by sustained consumer demand, higher average selling prices in all channels, and lower COVID-19 pandemic-induced impacts.

Segmental Details

Rental revenues grossed $12.1 million, up 61.3% from the year-ago period.

Sales revenues were $80.9 million, up 21.2%.

Revenues by Region & Category

Business-to-business revenues in the United States amounted to $22.8 million, down 1.1% on a year-over-year basis.

Internationally, this segment recorded revenues of $21.8 million, up 49.7% year over year and 46.9% at constant currency. Per management, higher COVID-19 vaccination rates and increased ambulation of patients in Europe, and rise in operational capacity of certain European respiratory assessment centers closer to normal levels contributed to the upside.

Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc Price, Consensus and EPS Surprise
Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote

Direct-to-consumer revenues increased 24.6% year over year to $36.3 million in the quarter, attributable to enhanced demand for portable oxygen concentrators (POCs) on account of higher COVID-19 vaccination rates within the company’s patient pool, and easing of COVID-19 restrictions resulting in increased ambulation and improved consumer confidence.

Margins

In the third quarter, gross profit was $47.7 million, up 44.5% year over year. Gross margin came in at 51.2%, up 680 basis points (bps).

Research and development expenses were $3.8 million, up 6.9% from the year-ago quarter. General and administrative expenses amounted to $9.3 million, up 7.8%.

Operating income in the quarter was $6.4 million, against the year-ago quarter’s operating loss of $1.9 million.

Cash Position

The company exited the third quarter of 2021 with cash, cash equivalents and marketable securities of $241.6 million, down from $250 million at the end of the second quarter of 2021.

Cumulative cash flow provided by operating activities at the end of the third quarter totaled $17.1 million compared with $20.8 million in the prior-year period.

Guidance

Due to the continued uncertainty in the business on account of supply chain disruptions, higher cost of critical components, and the impact and scope of the COVID-19 pandemic, the company refrained from providing a full-year outlook yet.

Wrapping Up

Inogen ended the third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company saw growth in revenues within its segments. In the third quarter, the company witnessed strength across direct-to-consumer and international business-to-business segments. The significant expansion in gross margin is positive.

However, weakness in the domestic business-to-business segment is a headwind. Increase in operating expenses remains a concern.

Zacks Rank

Currently, Inogen carries a Zacks Rank of 4 (Sell).

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, West Pharmaceutical Services, Inc. WST, and AngioDynamics, Inc. ANGO. While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%.

West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.


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