Yahoo Finance Inogen (INGN) Down 0.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Inogen (INGN). Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Inogen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Inogen Q1 Earnings Top Estimates, Revenues Up Y/Y
Inogen incurred an adjusted loss per share of 45 cents for first-quarter 2024, which was narrower than the adjusted loss per share of 63 cents in the year-ago period. The Zacks Consensus Estimate was pegged at a loss of 76 cents per share.
GAAP loss per share for the quarter was 62 cents, narrower than the year-earlier loss of 88 cents per share.
Revenues in Detail
Inogen registered revenues of $78 million for the first quarter, up 8.1% year over year. The figure surpassed the Zacks Consensus Estimate by 6.5%.
At constant exchange rate (CER), total revenues for the reported quarter increased 7.6%.
Per management, the year-over-year uptick in the top line was primarily driven by higher international and domestic business-to-business sales. However, this was partially offset by lower direct-to-consumer sales and rental revenues.
Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $14.9 million, down 8.3% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from a higher mix of lower private payer reimbursement rates and higher rental revenue adjustments.
Sales revenues were $63.1 million, down 12.9% from the prior-year quarter.
Revenues by Region & Category
Domestic business-to-business sales for first-quarter 2024 amounted to $16.5 million, up 31.3% on a year-over-year basis.
International business-to-business sales for the reported quarter amounted to $26 million, up 37.2% year over year on a reported basis and up 35.4% at CER.
Domestic direct-to-consumer sales decreased 15.6% year over year to $20.5 million for the quarter.
Margins
For the quarter under review, Inogen’s adjusted gross profit rose 11.1% from the year-ago period to $37.6 million. The adjusted gross margin expanded 127 basis points to 48.1%.
Sales and marketing expenses decreased 5.3% from the year-ago quarter to $26.9 million. R&D expenses increased 23.1% year over year to $6.6 million, while general and administrative expenses decreased 9.2% to $17.1 million. Adjusted operating expenses of $50.6 million decreased 3.8% year over year.
Adjusted operating loss totaled $13.1 million compared with the prior-year quarter’s $18.8 million.
Financial Position
Inogen exited first-quarter 2024 with cash and cash equivalents of $107.4 million compared with $125.5 million at 2023-end.
The company ended the quarter with no debt on its balance sheet.
Net cash used in operating activities at the end of first-quarter 2024 was $4.7 million compared with $6.3 million a year ago.
Guidance
Inogen has provided its revenue outlook for the second quarter of 2024.
The company expects the metric to lie between $81 million and $84 million. The Zacks Consensus Estimate currently stands at $82.8 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 5.76% due to these changes.
VGM Scores
At this time, Inogen has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Inogen has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Inogen belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Accuray (ARAY), has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Accuray reported revenues of $101.13 million in the last reported quarter, representing a year-over-year change of -14.3%. EPS of -$0.06 for the same period compares with $0.01 a year ago.
For the current quarter, Accuray is expected to post earnings of $0.04 per share, indicating a change of +233.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Accuray has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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