Omnicell Q4 Earnings & Revenues Beat, Stock Up, Gross Margin Rises

Omnicell, Inc. OMCL reported fourth-quarter 2024 adjusted earnings per share (EPS) of 60 cents, which surged 81.8% year over year. The metric also beat the Zacks Consensus Estimate by 5.2%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Adjustments include one-time expenses like share-based compensations, the amortization of acquired intangibles, acquisition-related expenses and RDS restructuring.GAAP EPS was 34 cents compared to a loss of 32 cents in the year-ago period.For the full year, adjusted earnings were $1.71 per share, down 10.4% from the year-ago period.Revenues totaled $306.9 million, up 18.6% year over year. The figure beat the Zacks Consensus Estimate by 3.3%.Total revenues for 2024 were $1.11 billion, down 3% from the year-ago period.Following the announcement on Feb. 6, OMCL shares gained 1.9% on Friday, finishing the session at $40.16.Segmental Analysis of Omnicell’s Q4 RevenuesOn a segmental basis, Product revenues declined 25.1% year over year to $182.3 million in the reported quarter.Omnicell, Inc. Price, Consensus and EPS Surprise Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. QuoteService and other revenues climbed 10.1% year over year to $124.6 million.OMCL’s Margin PerformanceIn the quarter under review, the gross profit increased 34.5% year over year to $141.8 million. The gross margin expanded 547 basis points (bps) to 46.2% despite a 7.6% rise in the cost of revenues.Operating expenses amounted to $129.4 million, up 0.5% year over year. The operating profit in the quarter totaled $12.4 million compared to an operating loss of 23.4 million in the year-ago period.Omnicell’s Financial UpdateOmnicell exited the fourth quarter of 2024 with cash and cash equivalents of $369.2 million compared with $468 million at the end of the fourth quarter of 2023.The cumulative cash flow provided by operating activities at the end of the fourth quarter was $187.7 million compared with $181.1 million in the year-ago period.Omnicell Initiates 2025 OutlookFor the full year, the company expects total revenues in the range of $1.105-$1.155 billion.Of this, product revenues are expected in the band of $610-$640 million and service revenues are anticipated in the $495-$515 million band. The Zacks Consensus Estimate for total revenues is pegged at $1.80 billion.The adjusted EPS for the year is expected in the range of $1.65-$1.85. The Zacks Consensus Estimate is pegged at $1.80.For the first quarter of 2025, Omnicell expects revenues between $255 and $265 million, including product revenues of $137-$142 million and service revenues of $118-$123 million. The adjusted EPS for the first quarter is expected between 15 cents and 25 cents.Our Take on OMCLOmnicell delivered better-than-expected earnings and revenues in the fourth quarter of 2024. The top line benefited from the improvement of the macroeconomic environment and the timing of the implementation of XT Series systems, along with continued growth in the SaaS and Expert Services (formerly Advanced Services), including an increase in revenues from Specialty Pharmacy Services offerings. Impressively, the company made a return to year-over-year revenue growth and is on track to meet its objective of delivering consistent GAAP profitability. The expansion of the gross margin in the quarter is highly impressive.Omnicell had several notable wins in the fourth quarter, including the renewal and expansion of services with a large academic medical center, a contract for a new specialty pharmacy program with a health system in the Northeast and a new collaboration to optimize a specialty pharmacy program for health systems in the Southeast. The multi-year XT Amplify innovation program, announced in April 2024, also continues to gain traction with strong portfolio-wide momentum.Zacks Rank & Other Key PicksOmnicell currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-Rad Laboratories BIO.ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Bio-Rad Laboratories, carrying a Zacks Rank #2, posted a third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Omnicell, Inc. (OMCL): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks