What's Going On With MedTech Focused Inogen Stock On Wednesday?

Medical Technology company Inogen Inc INGN reported a fourth-quarter adjusted EPS loss of 24 cents, compared to a loss of 83 cents a year ago, beating the consensus loss of 61 cents.

The company reported sales of $80.1 million, beating the consensus of $73.9 million.

Total revenue in the fourth quarter of 2024 increased 5.5% year over year, primarily driven by higher demand and new customers in international and domestic business-to-business sales, partially offset by lower direct-to-consumer sales and lower rental revenue as a result of the company's initiatives to enhance overall profitability.

"2024 was a stellar year for Inogen. With our new leadership team in place, we returned the company to growth, achieved significant milestones, and made meaningful steps towards profitability," said Kevin Smith, president and CEO. "With our leading portfolio of innovative respiratory care products, the pending introduction of Simeox in the U.S. and our recently announced collaboration with Yuwell, we believe we are well positioned to drive future growth, profitability, and sustained success."

Adjusted EBITDA loss was $3.6 million in the fourth quarter of 2024 compared to $17.3 million a year ago.

Guidance: Inogen expects first quarter 2025 sales of $79 million-$81 million versus consensus of $78.1 million.

The company expects fiscal year 2025 sales of $352 million-$355 million versus a consensus of $344.61 million.

Analyst Reaction:

• JP Morgan writes, “With initial guidance for 1Q25 also starting off a step above the Street, we view today as another step forward towards what we hope to be fully normalized trends in 2H25 ahead of more meaningful contribution from strategic initiatives in 2026+.”
• Analyst Robbie Marcus notes that while the company has a strong product in the underdeveloped POC market, its short-term outlook is uncertain. Supply challenges remain unresolved, and another sales team restructuring adds to the uncertainty.
• JP Morgan maintains the Underweight rating with a price target of $10.
• Needham analyst Mike Matson reiterates Inogen with a Hold rating.
• William Blair says, “Despite the softer DTC and rental segments, Inogen continues to see strength in its B2B segments in the U.S. and internationally. In our view, strength in this segment is durable and, although stepping down in 2025 off tougher comps, should continue to drive performance.”
• Analyst Margaret Kaczor Andrew says the company is on a clear path to profitability and will soon benefit from recent management-driven changes in strategy, culture, and organization.

Price Action: INGN stock reached as high as $11.85 during the premarket trading before falling 9.45% to $8.60 at the last check Wednesday.

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