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Omnicell, Inc.OMCL delivered adjusted earnings per share (EPS) of 70 cents in fourth-quarter 2018, beating the Zacks Consensus Estimate of 67 cents.

Adjusted earnings improved 27.3% from the year-ago figure and also surpassed the company's guided range of 64-69 cents.

Full-year adjusted earnings came in at $2.09 per share, reflecting a 48.2% surge from the year-ago period. Moreover, the figure exceeded the Zacks Consensus Estimate of $2.04

Revenues in Detail

Adjusted revenues in the fourth quarter increased 7.7% year over year to $211.8 million. However, the top line missed the Zacks Consensus Estimate by 1.3%.

Omnicell, Inc. Price, Consensus and EPS Surprise

Omnicell, Inc. Price, Consensus and EPS Surprise | Omnicell, Inc. Quote



The company reported 2018 revenues of $787.3 million, up 10.3% from the year-earlier period. But the number lagged the Zacks Consensus Estimate of $790.2 million.

Quarterly Details

On a segmental basis, Automation and Analytics revenues increased 9.9% year over year in the reported quarter to $177.6 million.

Moreover, revenues at the Medication Adherence segment inched up 1.9% year over year to $34.1 million.

Operational Update

Omnicell's gross profit in the reported quarter rose 9.3% to $102.1 million. Gross margin expanded 65 basis points (bps) to 48.3%.

SG&A expenses in the fourth quarter escalated 7.9% year over year to $66.3 million. Research and development expenses were up 6.9% year over year to $16.9 million. Operating expenses were $83.3 million in the fourth quarter, up 7.7% year over year.

Operating profit in the quarter under review totaled $18.9 million, up 16.8% from the prior-year quarter. Operating margin in the fourth quarter rose 69 bps to 8.9%.

Financial Update

Omnicell exited 2018 with cash and cash equivalents of $67.2 million compared with $32.4 million at the end of 2017.

2019 Guidance

For the first quarter of 2019, Omnicell expects adjusted revenues in the band of $196-$202 million. The company expects first-quarter adjusted earnings per share within 38-43 cents. The Zacks Consensus Estimate for first-quarter revenues is pegged at $204.2 million, ahead of the guided range. The consensus estimate for EPS of 37 cents lies below the projected range.

For 2019, Omnicell raised product bookings to $745-$780 million.

The company's full year expects adjusted revenues in the band of $880-$900 million. The Zacks Consensus Estimate for full-year revenues stands at $878.1 million, falling short of the company's forecast.

Omnicell expects adjusted EPS in the range of $2.40-$2.60. The Zacks Consensus Estimate for full-year earnings is pegged at $2.40, in line with the lower end of the company's expectation.

Our Take

Omnicell's fourth-quarter 2018 performance was mixed. While earnings exceeded the Zacks Consensus Estimate, revenues fell shy of the same. The company continued to see a solid uptake of Omnicell XT. It also inked various deals for both the XR2 and the IVX Workflow products. A rise in bookings and product backlogs was also observed in the reported quarter. We are encouraged to note that the company is working on product innovation through R&D. Also, Omnicell is expected to gain traction from launches, strategic partnerships and digital transformation.

However, a tough competitive landscape acts as a dampener.

Zacks Rank & Key Picks

Omnicell has a Zacks Rank #3 (Hold). Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Abbott Laboraories ABT , AngioDynamics ANGO and CONMED Corp. CNMD .

Abbot t report ed fourth-quarter 2018 adjusted EPS of 81 cents, in line with the Zacks Consensus Estimate. Revenues of $7.77 billion remained slightly below the Zacks Consensus Estimate of $7.79 billion. The stock has a Zacks Rank #2 (Buy).

AngioDynamics' second-quarter fiscal 2019 adjusted EPS of 22 cents trumped the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, surpassing the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

CONMED delivered fourth-quarter adjusted EPS of 73 cents, matching the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.

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