It has been about a month since the last earnings report for Inogen, Inc INGN. Shares have added about 8% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Inogen Beats Earnings and Revenue Estimates in Q1

Goleta, CA-based Inogen reported first-quarter 2017 earnings of $0.27 per share, which comfortably beat the Zacks Consensus Estimate and the year-ago figure of $0.12.

The upside was driven by roughly 22.1% growth in revenues, which totaled $52.5 million, beating the Zacks Consensus Estimate of almost $49.6 million.

Segment Details

Sales revenues surged 40.1% to $46 million, while rental revenues plunged 35.8% to $6.5 million.

Business-to-business: Business-to-business domestic sales were up 84.2% on a year-over-year basis to almost $17.4 million, primarily driven by traditional home medical equipment provider purchases and the consistent strength of the private label partner.

Meanwhile, business-to-business International sales rose around 14.6% to almost $11.4 million on the back of solid demand.

Direct-to-consumer: Direct-to-consumer domestic sales advanced 27.8% to almost $17 million.

However, direct-to-consumer rental sales fell 35.8% to $6.5 million.

Margin Details

In the reported quarter, Inogen registered a gross margin of 49% (as a percentage of revenues), down 50 basis points (bps) on a year-over-year basis.

Meanwhile, sales gross margin expanded 260 bps in the quarter to 52.3%, as a percentage of revenues. Per management, an increase in sales gross margin was driven by lower cost of goods sold in the quarter.

Rental gross margin was 25.9% in the reported quarter, much lower than 48.9% in the first quarter of 2016. This was primarily driven by lower net revenue per rental patient.

Adjusted EBITDA rose 34% to $10.9 million on a year-over-year basis.

Guidance

Inogen reiterated its 2017 revenue and adjusted EBITDA guidance. However, the company raised its full-year adjusted net income guidance.

Inogen projects revenues in the range of $233–$239 million, higher than the previous range of $230–$236 million. This represents year-over-year growth of 14.9%–17.8%. The company expects rental revenue to decline in 2017, courtesy of lower average rental revenue per patient.

Adjusted EBITDA is projected in the band of $46–$50 million, representing an increase of 6%–15.2% year over year.