Omnicell, Inc. OMCL 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.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise | Omnicell, Inc. Quote
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.
Operational Update
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.
Financial Update
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.
2018 Guidance
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.
Our Take
Omnicell’s first-quarter 2018 performance was impressive. Further, both the company’s segments witnessed year-over-year growth. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain from recent launches and strategic partnerships.
However, a tough competitive landscape acts as a dampener.
Zacks Rank & Key Picks
Omnicell has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space, which reported solid earnings this season, are Laboratory Corporation of America Holdings LH, Chemed Corporation CHE and Intuitive Surgical, Inc. ISRG. While Intuitive Surgical sports a Zacks Rank #1 (Strong Buy), LabCorp and Chemed carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported first-quarter 2018 EPS of $2.44 per share, which beat the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, also surpassing the Zacks Consensus Estimate by 10.6%.
LabCorp reported first-quarter 2018 EPS of $2.78, beating the Zacks Consensus Estimate by 5.3%. Revenues came in at $2.85 billion, steering past the Zacks Consensus Estimate of $2.78 billion.
Chemed posted first-quarter 2018 EPS of $2.72, beating the Zacks Consensus Estimate of $2.37. Revenues came in at $439.2 million, surpassing the Zacks Consensus Estimate of $420 million.
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