Omnicell Earnings: Here’s Why Investors are Ambivalent Now

Omnicell Inc. (NASDAQ:OMCL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Omnicell Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35% to $0.27 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 24.3% to $93.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Omnicell Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.25. It beat the average revenue estimate of $92.42 million.

Quoting Management: “By all measures, Omnicell continues to perform well against competition. Thirty percent of bookings were from competitive conversions such as the 14-hospital Baptist Memorial Health Care system, Wisconsin’s ProHealth Care and other first-time customers,” added Mr. Lipps. “And recently KLAS, a leading independent healthcare research firm, named Omnicell the 2013 number one overall pharmacy equipment vendor. Further validating Omnicell value, our automated medication dispensing system achieved the top ranking, ‘Best in KLAS’, for the eighth consecutive year, and the company’s central pharmacy products received top ratings in three categories.”

Key Stats (on next page)…

Revenue increased 7.57% from $87.11 million in the previous quarter. EPS increased 28.57% from $0.21 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.28 and has not changed. For the current year, the average estimate is a profit of $1.04, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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