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Inogen (INGN) Stock Loses 9.2% After Delivering Loss in Q3

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Inogen, Inc. INGN fell 9.2% on Nov 5 after reporting its earnings results.

The company reported third-quarter 2020 loss per share of 8 cents, wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the company had reported earnings per share (EPS) of 31 cents in the year-ago quarter.

Revenues of this company came in at $74.3 million, which missed the Zacks Consensus Estimate by 0.8%. On a year-over-year basis, the top line dropped 19.1% mainly due to the impact of the COVID-19 pandemic.

Segmental Details

Rental revenues grossed $7.5 million, up 40.1% from the year-ago period.

Sales revenues came in at $66.8 million, down 22.7%.

Revenues by Region & Category

Business-to-business revenues in the United States amounted to $23.1 million, down 23.5% on a year-over-year basis. Per management, the decline was primarily owing to lower demand from resellers and home medical equipment (“HME”) providers for portable oxygen concentrators (“POCs”).

Internationally, this segment recorded revenues of $14.6 million, down 21.1% year over year and 23% at constant currency. Per management, the decline was mainly led by temporary lowering of operating capacity of certain European respiratory assessment centers as a result of the COVID-19 pandemic, consistent tender delays in certain European markets, and decline in sales in other markets, primarily Canada and Australia.

Direct-to-consumer revenues fell 22.7% year over year to $29.2 million in the quarter.Sales declined due to the impact of the COVID-19 pandemic on consumer travel and mobility along with lower consumer confidence.

Margins

In the third quarter, gross profit was $33 million, down 23.8% year over year. Gross margin came in at 44.4%, down a significant 280 basis points (bps).

Total operating costs came at $34.9 million, down 0.7%.

Loss from operations in the quarter was $1.9 million against the year-ago quarter’s operating profit of $8.1 million.

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

Cash Position

The company exited the third quarter with cash and cash equivalents of $213.9 million, compared with $214.1 million at the end of the second quarter.

Guidance

Due to the uncertainty around the impact and scope of the COVID-19 pandemic on its business, the company has not issued full-year 2020 or 2021 guidance.

Wrapping Up

Inogen ended the third quarter on a weak note.The company reported decline in business-to-business international and domestic revenues in the quarter under review. Also, decline in direct-to-consumer revenues during the quarter is concerning. The significant contraction in gross margin and operating loss add to the woes.

However, the company saw growth in revenues within its Rental segment in the third quarter. Sequential growth in total revenues is encouraging. Inogen expects the business-to-business arm to be a strong contributor to revenues in 2020, thanks to the Tidal Assist Ventilator.

Zacks Rank and Key Picks

Inogen currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Thermo Fisher Scientific Inc. TMO, Align Technology, Inc. ALGN and AngioDynamics, Inc. ANGO, each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.

Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.

AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.

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