Why Is Cohen & Steers (CNS) Up 3% Since Last Earnings Report?
It has been about a month since the last earnings report for Omnicell, Inc. OMCL. Shares have added about have added about 2.6% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is OMCL due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Omnicell reported adjusted earnings per share of 29 cents in first-quarter 2018, beating the Zacks Consensus Estimate of 27 cents. Earnings improved from the year-ago figure of 7 cents and are above the company’s guided range of 22-28 cents.
Revenues in Detail
Adjusted revenues in the first quarter increased 22.9% year over year to $182.6 million, also above the Zacks Consensus Estimate of $177.4 million.
On a segmental basis, Automation and Analytics revenues increased 23.9% year over year in the first quarter to $151.4 million.
Also, revenues at the Medication Adherence segment rose 18.3% year over year to $31.2 million.
Omnicell's gross profit during the reported quarter increased 32.6% to $82.5 million. Gross margin expanded 330 basis points (bps) to 45.2%.
SG&A expenses in the first quarter increased 5.4% year over year to $65.3 million. Research and development expenses decreased 1.6% year over year to $16.5 million. Operating expenses were $81.8 million in the first quarter, up 3.9% year over year.
Operating profit in the quarter totaled $0.6 million, compared with $16.6 million in the year-ago quarter.
Omnicell exited first-quarter 2018 with cash and cash equivalents of $43.8 million, compared with $32.4 million at the end of fourth-quarter 2017.
For the second quarter of 2018, Omnicell expects adjusted revenues in the band of $185-$190 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The company expects second-quarter 2018 adjusted earnings per share in the band of 36-42 cents. The Zacks Consensus Estimate for second-quarter revenues is pegged at $194.7 million and earnings per share at 45 cents. Both the estimates fall above the guided range.
For 2018, Omnicell reaffirmed the product bookings at the range of $625-$660 million. Also, the company expects adjusted revenues in the band of $780-$800 million, which includes the impact of reclassification of selling costs as a reduction of revenues. The company also projects adjusted earnings in the band of $1.85-$2.05 per share.
The Zacks Consensus Estimate for full-year earnings is pegged at $2.00, within the company’s guided range. The Zacks Consensus Estimate for full-year revenues stands at $789.4 million, within the company’s guided range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
Omnicell, Inc. Price and Consensus
Omnicell, Inc. Price and Consensus | Omnicell, Inc. Quote
At this time, OMCL has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for growth and momentum investors.
OMCL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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