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Can Inogen (INGN) Pull a Surprise this Earnings Season?

Inogen Inc. INGN is scheduled to report third-quarter 2015 earnings results on Nov 10. Last quarter, the company reported earnings of 17 cents per share which beat the Zacks Consensus Estimate by a couple of cents (13.3%).

Notably, the company beat the Zacks Consensus Estimate in the last four consecutive quarters, with an average earnings surprise of 52.74%.

Let us see how things are shaping up for this announcement.

Factors Influencing This Quarter

Inogen's unique direct-to-customer business model, innovative product portfolio and growing patient base are key growth catalysts. Increasing international sales and expansion also bode well. Rising patient awareness about the benefits of Inogen's POC is another major positive, in our view.

Inogen expects steady growth in the direct-to-consumer business to continue for the rest of 2015 driven by an increase in the number of sales representatives and enhanced productivity. Additionally, upcoming product upgrades (Inogen One G3 and G4) are expected to propel growth.

Earnings Whispers

Our proven model does not conclusively show that Inogen is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP : Inogen has a 0.00% ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 13 cents.

Zacks Rank : Inogen carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.

We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Opko Health OPK has an Earnings ESP of +100% and a Zacks Rank #2.

CoLucid Pharmaceuticals CLCD has an Earnings ESP of +11.27% and a Zacks Rank #2.

Intercept Pharmaceuticals ICPT has an Earnings ESP of +1.54% and a Zacks Rank #2.

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OPKO HEALTH INC (OPK): Free Stock Analysis Report

INTERCEPT PHARM (ICPT): Free Stock Analysis Report

INOGEN INC (INGN): Free Stock Analysis Report

COLUCID PHARMA (CLCD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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