Why Omnicell Is Soaring Today
What happened
Shares of Omnicell (NASDAQ: OMCL), a medication management company focused on automating the pharmacy, rose 13% as of 11:20 a.m. EDT on Friday. The jump was caused by a well-received second-quarter earnings report that featured expectation-topping guidance.
So what
Here's a review of the highlights from the report:
Non-GAAP revenue jumped 4% to $188.7 million.
Non-GAAP gross margin expanded 380 basis points to 49.1%.
Non-GAAP net income grew 44% to $18.4 million.
Non-GAAP EPS was $0.46 per share. This was far ahead of the $0.39 that Wall Street had projected.
Image source: Getty Images.
Turning to guidance, here's what the company is projecting:
Third-quarter revenue will land between $200 million and $206 million. The midpoint of this range is ahead of what market watchers were expecting.
Third-quarter EPS is expected to land between $0.52 and $0.57.
Full-year 2018 revenue is projected to land between $780 million and $800 million. The middle of this range is in line with Wall Street's estimate.
Full-year 2018 EPS is expected to land between $1.90 and $2.05. The midpoint of this range is ahead of the $1.95 that market watchers were expecting.
Given the upbeat results, it isn't hard to figure out why shares are up by double digits today.
Now what
Omnicell's second-quarter results show that the business is scaling nicely as revenue continues to tick higher. That's a great development for investors and bodes well for profit growth from here as the company continues to ride the pharmacy automation wave.
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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
