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Inogen (INGN) to Report Q1 Earnings: What's in the Offing?

Zacks Equity Research

Inogen, Inc. INGN is scheduled to report first-quarter 2019 earnings on May 7, after the market closes. Product launches are expected to aid the company in first-quarter results.


Over the trailing four quarters, the company delivered a positive average earnings surprise of 60.5%.


Which Way are Estimates Treading?


For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 29 cents, depicting a decline of 39.6% from the year-ago quarter’s reported figure. The same for revenues stands at $90 million, reflecting a year-over-year increase of 13.9%.


Let’s see how things are shaping up prior to the first-quarter earnings release.

Inogen, Inc Price, Consensus and EPS Surprise


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

Factors to Consider


We believe that an under-penetrated international market and favorable reimbursement scenario in Europe are currently favoring Inogen.


Inogen has been gaining from strength in the Europe business. In fact, management expects tender activity to increase in the region and its partners to continue adopting portable oxygen concentrators, which might drive first-quarter revenues.


Additionally, management is optimistic to gain from the launch of the next-generation portable oxygen concentrator, the Inogen One G5. Notably, this might boost the company’s direct-to-consumer revenues in the to-be-reported quarter.


Another crucial platform, the Inogen Connect, launched in 2018, is also expected to aid first-quarter results.


However, the company continues to face headwinds.


Management at Inogen anticipates full impact of tariffs in results of the quarter-to-be-reported. Additionally, international revenues are likely to remain weak, owing to adverse foreign currency exchange rates in the first quarter.


What Does Our Model Say?


Our proven model indicates that a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to deliver a positive earnings surprise. This is precisely the case here.


Earnings ESP: Inogen has an Earnings ESP of +3.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter


Zacks Rank: The company currently carries a Zacks Rank #3.


Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.


Stocks Worth a Look


Here are a few stocks that are likely to post an earnings beat this season.


Cardinal Health CAH has an Earnings ESP of +1.13% and a Zacks Rank #3 at present. You can see  the complete list of today’s Zacks #1 Rank stocks here .


Aurora Cannabis ACB currently has an Earnings ESP of +55.88% and a Zacks Rank #3.


HEXO Corp. HEXO presently has an Earnings ESP of +27.08% and a Zacks Rank #3.


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Inogen, Inc (INGN) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report
HEXO Corp. (HEXO) : Free Stock Analysis Report
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