Inogen (INGN) reports fourth-quarter loss, misses revenue estimates

Inogen (INGN) came out with a quarterly loss of $1.01 per share versus the Zacks Consensus Estimate of a loss of $0.74. That compares to a loss of $0.23 per share a year ago. The figure is adjusted for one-time items.

This quarterly report represents an earnings surprise of -36.49%. A quarter ago, it was expected that this company, which produces oxygen concentrators for patients with chronic respiratory conditions, would post a loss of $0.29 per share when it actually produced earnings of $0.53, representing a surprise of 282.76%.

The company has topped consensus earnings per share estimates three times over the last four quarters.

Inogen, which belongs to the Zacks Medical – Instruments industry, posted revenues of $76.4 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $73.98 million. The company has topped the consensus revenue estimate three times over the last four quarters.

The sustainability of current share price movements based on recently released data and future earnings expectations will depend primarily on management’s commentary following the earnings conference call.

Year to date, Inogen shares have lost about 17.4%, while the S&P 500 is down -11.3%.

What’s next for Inogen?

While Inogen stock has been the worst performer of any stock on the market this year, investors are wondering: What’s next for this stock?

There are no easy answers to this key question, but one reliable indicator that can help investors address this is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings report, the estimate revision trend for Inogen is mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. As such, the stock is expected to perform in line with the market in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the upcoming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.56 on $78.2 million in revenue for the coming quarter and -$0.39 on $363.23 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the industry can also have a significant impact on stock performance. In terms of the Zacks Industry Rank, Medical – Instruments is currently in the bottom 30% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another company in the same industry, Veracyte (VCYT), is yet to release its results for the quarter ended December 2021. The results are expected to be released on February 28.

The molecular diagnostics company is expected to report a quarterly loss of $0.14 per share in its upcoming report, which would be unchanged from the year-ago quarter. The consensus EPS estimate for the quarter has been revised up 4.8% over the past 30 days to the current level.

Veracyte revenue is expected to be $63.48 million, representing an increase of 83.8% compared to the same quarter last year.

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