Omnicell, Inc.
OMCL
reported third-quarter 2021 adjusted earnings per share (EPS) of $1.08, up 80% year over year. The metric also beat the Zacks Consensus Estimate by 18.7%.
The adjustments include one-time expenses like share-based compensation, amortization of acquired intangibles, severance-related and other expenses.
On a GAAP basis, earnings per share were 61 cents for the quarter under review, reflecting an improvement from net loss per share of 20 cents in the year-ago quarter.
Revenues in Detail
Third-quarter revenues of $296.5 millionrose 38.7% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 4.4%.
Segmental Details
On a segmental basis, Product revenues rose 41.4% year over year to $213.9 million in the reported quarter.
Service and other revenues climbed 32.2% year over year to $82.4 million.
Operational Update
In the quarter under review, company-adjusted gross profit rose 50.6% to $151.0035 million. The company-adjusted gross margin expanded 400 basis points (bps) to 51.1%.
Omnicell, Inc. Price, Consensus and EPS Surprise
Company-adjusted operating profit in the third quarter totaled $54.2 million, up 88.2% year over year. The company adjusted operating margin of 18.3% represented a 480 bps of year-over-year expansion.
Financial Update
Omnicell exited the third quarter with cash and cash equivalents of $481.6 compared with $614.2 million at the end of second-quarter 2021.
Cumulative cash flow from operating activities at the end of the reported quarter was $172.3 million compared with $109.4 million a year ago.
Guidance for Q4 & 2021
For the fourth quarter of 2021, Omnicell expects revenues between $308 million and $313 million. The Zacks Consensus Estimate for the metric is pegged at $283.8 million. Product revenues are forecast between $219 million and $222 million, while service revenues are projected within $89 million and $91 million for the quarter.
Fourth-quarter adjusted EPS is envisioned in the band of 90-95 cents. The Zacks Consensus Estimate for the same is pegged at 91 cents.
For the full year, the company upped its product bookings guidance to the range of $1.13 billion to $1.17 billion, from the July-announced band of $1.11 billion to $1.15 billion.
Revenues are estimated between $1.129 billion and $1.134 billion, suggesting an improvement from the previously estimated $1.10 billion and $1.11 billion. The Zacks Consensus Estimate for the same stands at $1.11 billion.
Full-year adjusted EPS is expected between $3.80 and $3.85 (an improvement from the earlier-provided view of $3.65 to $3.75). The Zacks Consensus Estimate for the metric stands at $3.71.
Our Take
Omnicell exited the third quarter with better-than-expected revenues and earnings. The company reported solid revenues and adjusted EPS growth in the reported quarter. Growth across both the operating segments contributed to the top line. Expansion in both the margins was another upside.
The company’s strong performance in the quarter and year to date is reflective of the robust demand for its medication management and adherence automation solutions. The company recently acquired 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 #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
A few better-ranked stocks in the broader medical space that have announced quarterly results are
Medpace Holdings, Inc.
MEDP
,
Thermo Fisher Scientific Inc.
TMO
and
West Pharmaceutical Services, Inc.
WST
.
Medpace, currently carrying a Zacks Rank #1, reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. Thermo Fisher Scientific reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #1.
West Pharmaceutical Services, carrying a Zacks Rank #2, reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the consensus mark by 3.2%.
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