Omnicell Beats Estimates Yet Again

Seth Jayson, The Motley Fool
Updated

Omnicell (NAS: OMCL) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Omnicell met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share expanded significantly.

Margins improved across the board.

Revenue details
Omnicell booked revenue of $62.9 million. The six analysts polled by S&P Capital IQ expected sales of $63.2 million. Sales were 9.9% higher than the prior-year quarter's $57.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.19. The six earnings estimates compiled by S&P Capital IQ averaged $0.16 per share on the same basis. GAAP EPS of $0.12 for Q4 were 492% higher than the prior-year quarter's $0.02 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.0%, 220 basis points better than the prior-year quarter. Operating margin was 9.8%, 710 basis points better than the prior-year quarter. Net margin was 6.6%, 540 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $64.8 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $275.4 million. The average EPS estimate is $0.71.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 160 members out of 170 rating the stock outperform, and 10 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Omnicell a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Omnicell is buy, with an average price target of $19.67.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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