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Omnicell (OMCL) Q2 Earnings Top Estimates, 2021 EPS View Up

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·4 min read
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Omnicell, Inc. OMCL reported second-quarter 2021 adjusted earnings per share (EPS) of 97 cents, up 162.2% year over year. The metric also beat the Zacks Consensus Estimate by 21.3%.

The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, acquisition-related expenses and others.

On a GAAP basis, earnings per share were 43 cents for the quarter under review, reflecting an improvement from the net loss per share of 10 cents in the year-ago quarter.

Revenues in Detail

Second-quarter revenues of $272.7 million rose 36.6% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 2.1%.

Segmental Details

On a segmental basis, Product revenues rose 41.7% year over year to $196.9 million in the reported quarter.

Omnicell, Inc. Price, Consensus and EPS Surprise

Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise

Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. Quote

Service and other revenues climbed 24.9% year over year to $75.8 million.

Operational Update

In the quarter under review, company-adjusted gross profit rose 63.8% to $136.3 million. Company-adjusted gross margin expanded 828 basis points (bps) to 49.9%.

Adjusted operating profit in the second quarter totaled $28.9 million against adjusted operating loss of $6.9 million in the year-ago quarter.

Financial Update

Omnicell exited the second quarter with cash and cash equivalents of $614.2 compared with $548.1 million at the end of first-quarter 2021.

Cumulative cash flow from operating activities at the end of the reported quarter was $129.2 million compared with $72.7 million a year ago.

Guidance for Q3 & 2021

For the third quarter of 2021, Omnicell expects revenues between $281 million and $286 million. The Zacks Consensus Estimate for the metric is pegged at $275.56 million. Product revenues are forecast between $202 million and $205 million, while service revenues are projected within $79 million and $81 million for the quarter.

Third-quarter adjusted EPS is envisioned in the band of 89-94 cents. The Zacks Consensus Estimate for the same is pegged at 86 cents.

For the full year, the company has narrowed its product bookings guidance to the range of $1.11 billion to $1.15 billion, compared to the April-announced band of $1.09 billion to $1.15 billion.

Revenues are estimated between $1.10 billion and $1.11 billion, suggesting an improvement from the previously-estimated $1.08-$1.10 billion. The Zacks Consensus Estimate for the same stands at $1.10 billion.

For 2021, the currently-projected ranges for product and service revenues are $785-$795 million (previously $770-$785 million) and $315-$320 million (unchanged), respectively.

Full-year adjusted EPS is expected between $3.65 and $3.75 (an improvement from the earlier-provided view of $3.50 and $3.70). The Zacks Consensus Estimate for the metric stands at $3.56.

Our Take

Omnicell exited the second quarter with better-than-expected revenues and earnings. The company reported strong revenues and adjusted EPS growth in the reported quarter. Growth across both the operating segments contributed to the top line. Expansion in gross margin is another upside.

The company’s strong performance in the quarter and year-to-date is reflective of the robust demand for its solutions and services. The company recently announced its intent to acquire FDS Amplicare in an effort to strengthen its Advanced Services portfolio, which continues to gain momentum in the market. The raised adjusted EPS guidance for 2021 also buoys optimism.

Zacks Rank and Key Picks

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

Some better-ranked stocks in the broader medical space that have announced their quarterly results are Boston Scientific Corporation BSX, West Pharmaceutical Services, Inc. WST and Laboratory Corporation of America Holdings LH, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific reported second-quarter 2021 adjusted EPS of 40 cents, which beat the Zacks Consensus Estimate by 8.1%. Revenues of $3.08 billion outpaced the consensus mark by 4.4%.

West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Revenues of $723.6 million outpaced the consensus estimate by 8.7%.

LabCorp reported second-quarter 2021 adjusted EPS of $6.13, surpassing the Zacks Consensus Estimate by 8.7%. Revenues of $3.84 billion exceeded the Zacks Consensus Estimate by 6.9%.


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