Inogen, Inc. INGN incurred an adjusted loss per share of 11 cents for third-quarter 2024, which was narrower than the adjusted loss per share of 36 cents in the year-ago period and the Zacks Consensus Estimate of a loss of 51 cents per share.
GAAP loss per share for the quarter was 25 cents, narrower than the year-earlier loss of $1.97 per share.
INGN’s Revenues in Detail
Inogen registered revenues of $88.8 million for the third quarter, up 5.8% year over year. The figure surpassed the Zacks Consensus Estimate by 6.2%.
At constant exchange rate (CER), total revenues for the reported quarter increased 6% year over year.
Per management, the year-over-year uptick in the top line was primarily driven by higher demand and new customer gains across the domestic and international business-to-business channels. However, this was partially offset by lower direct-to-consumer sales and rental revenues.
Shares of this company gained nearly 17.2% till last trading.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Inogen’s Segmental Details
Inogen derives revenues from two sources — rental and sales.
Rental revenues for the reported quarter grossed $13.9 million, down 13.1% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from continued lower average billing rates due to the mixed shift to private payers.
Sales revenues were $74.9 million, up 10.2% from the prior-year quarter.
INGN’s Revenues by Region & Category
Domestic business-to-business sales for third-quarter 2024 amounted to $16.5 million, up 35.1% on a year-over-year basis. Per management, this was driven by increased demand from new customers and resellers.
International business-to-business sales for the reported quarter amounted to $32.3 million, up 26.2% year over year on a reported basis and up 26.9% at CER. Per management, this resulted from increased demand from new and existing customers.
Domestic direct-to-consumer sales decreased 23.2% year over year to $19.2 million for the quarter.
For the quarter under review, Inogen’s adjusted gross profit rose 20.1% from the year-ago period to $44.6 million. The adjusted gross margin expanded 598 basis points to 50.2%.
Sales and marketing expenses increased 1% from the year-ago quarter to $26.4 million. Research and development expenses decreased 21.6% year over year to $3.5 million, while general and administrative expenses increased 13.2% year over year to $19.3 million. Adjusted operating expenses of $49.1 million rose 3.2% year over year.
Adjusted operating loss totaled $4.5 million compared with the prior-year quarter’s $10.5 million.
INGN’s Financial Position
Inogen exited third-quarter 2024 with cash and cash equivalents of $105.7 million compared with $97.9 million at the first-quarter end.
The company ended the quarter with no debt on its balance sheet.
Cumulative net cash provided by operating activities at the end of third-quarter 2024 was $8.9 million against cumulative net cash used in operating activities of $0.1 million a year ago.
Inogen’s Guidance
Inogen has provided its revenue outlook for the full year.
The company now expects the metric to lie between $329 million and $331 million (reflecting growth of 4-5% from the comparable 2023 revenues), up from the prior outlook of $325 million to $330 million (reflecting growth of 3-5% from the comparable 2023 revenues). The Zacks Consensus Estimate currently stands at $326.9 million.
Our Take
Inogen exited the third quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.
Last month, INGN commenced the U.S. market release of the Inogen Rove 4 Portable Oxygen Concentrator. This looks promising for the stock.
Yet, a decline in domestic direct-to-consumer sales and rental revenues was concerning. Inogen continued to incur operating losses for the third quarter, which did not bode well.
INGN’s Zacks Rank and Key Picks
Inogen currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated DGX, ResMed Inc. RMD and Boston Scientific Corporation BSX.
Quest Diagnostics, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2024 adjusted earnings per share (EPS) of $2.30, beating the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion outpaced the consensus mark by 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has a long-term estimated growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.4%.
ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, beating the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.
ResMed has a long-term estimated growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.4%.
Boston Scientific reported third-quarter 2024 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.
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