Omnicell Beats On Q2 Earnings, Issues Promising Q3 Guidance

Omnicell Inc OMCL reported second-quarter FY21 revenue growth of 36.6% year-on-year to $272.7 million, beating the analyst consensus of $268.5 million.
The increase in revenues reflects momentum in commercial business and customer implementations and pandemic recovery.
Product revenue increased 41.7% Y/Y to $196.9 million, while Services and other revenue rose 25% to $75.8 million.
The non-GAAP gross margin expanded 670 bps to 51.7%, while the non-GAAP operating margin expanded by 1,060 bps to 18.3%. The non-GAAP EBITDA margin expanded 930 bps to 22.4%.
Non-GAAP EPS of $0.97 beat the analyst consensus of $0.82.
The company held $614.2 million in cash and equivalents. It generated $71.8 million in operating cash flow during the quarter.
The company focuses on improving patient health outcomes and supporting its healthcare systems partners on their journey to the Autonomous Pharmacy, Chair and CEO Randall Lipps stated.
Outlook: Omnicell sees Q3 revenue of $281 million - $286 million, above the consensus of $278.7 million. It sees non-GAAP EPS of $0.89 - $0.94 versus the consensus of $0.92.
For 2021, it forecast total revenues of $1.100 billion to $1.115 billion, up from the prior view of $1.085 billion to $1.105 billion, versus the consensus of $1.10 billion. It sees non-GAAP EPS of $3.65 - $3.75, up from the previous $3.50 - $3.70 outlook, compared to the consensus of $3.59.
Price action: OMCL shares traded lower by 5.06% at $140.67 in the on the last check Thursday.

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