Why Is Inogen Stock Plummeting Today?

Inogen Inc INGN, a medical technology company, reported fourth-quarter 2023 revenues of $75.90 million, missing the consensus of $76.99 million.

Fourth quarter total revenue fell from $88.1 million in the fourth quarter of 2022. This was primarily due to a decrease in domestic business-to-business and direct-to-consumer sales, partially offset by higher rental revenue.

Inogen reported an adjusted EPS loss of $(0.83). While the company missed the consensus of $(0.62), it reported higher than the $(0.57) reported a year ago.

Also Read: Competitor Exit A Boom For Respiratory Device-Focused Inogen, Earns Analyst Upgrade.

Guidance: Inogen expects first quarter 2024 revenue of $73 million-$74 million versus the consensus of $80.63 million.

William Blair acknowledges the uncertainties in international tenders and the company’s commercial strategy adjustments, such as discontinuing a third-party rental partnership. 

Despite these challenges, the analyst writes that the provided guidance is realistic and potentially surpassable under the new management team. 

There are positive indicators of market improvement and Inogen’s enhanced market position, particularly with a significant competitor exiting.

Specific market share figures for Respironics before its January exit from the POC market were not disclosed. Inogen is described as a market leader with an estimated 40%-50% share. 

The departure of the competitor has created an opportunity for Inogen to capture additional market share (estimated at 15%-25% for Respironics). Although this potential benefit is not included in the first-quarter guidance, management has indicated early interest from some HME customers.

William Blair reiterates the Outperform rating in the stock.

Price Action: INGN shares are down 31.1% at $6.44 on the last check Wednesday.