Inogen's (INGN) Q2 Earnings Beat Estimates, Revenues Miss

Inogen, Inc. INGN reported second-quarter 2020 earnings per share (EPS) of 12 cents against the Zacks Consensus Estimate of a loss of 8 cents. However, the bottom line fell 73.3% from year-ago quarter.

Revenues of this company came in at $71.7 million, which missed the Zacks Consensus Estimate by 10.1%. On a year-over-year basis, the top line dropped 29.1% mainly due to the impact of the COVID-19 pandemic.

Segmental Details

Revenues at the Sales segment amounted to $65.6 million in the quarter under review, down 31.6% on a year-over-year basis.

Rental revenues grossed $6.1 million, up 16.9% from the year-ago period.

Revenues by Region & Category

Business-to-business revenues in the United States amounted to $21.6 million, down 27.3% on a year-over-year basis. Per management, the decline was primarily owing to reduced demand from home medical equipment providers and resellers of portable oxygen concentrators.

Internationally, this segment recorded revenues of $13.9 million, down 38.5% year over year and 37.4% at constant currency. Per management, the decline was primarily led by temporary shutdown of certain European respiratory assessment centers due to the COVID-19 pandemic and continued tender delays in few European markets.

Direct-to-consumer revenues fell 30.9% year over year to $30.2 million in the quarter. Sales were adversely impacted by the COVID-19 public health emergency (PHE) due to the lack of mobility from government mandated stay-at-home initiatives and economic uncertainty.

Inogen, Inc Price, Consensus and EPS Surprise


Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote


In the second quarter, gross profit was $32.7 million, down 34.8% year over year. Gross margin came in at 45.7%, down a significant 400 basis points (bps).

Loss from operations in the quarter was $2.4 million against the year-ago quarter’s operating profit of $12.1 million.


Due to the uncertainty around the impact and scope of the COVID-19 pandemic on its business, the company has not issued any quarterly or full-year guidance.

Wrapping Up

Inogen ended the second quarter on a mixed note. The company saw growth in revenues within its Rental segment. Increased patient interest in the company’s products sequentially was observed in May and June. Inogen expects the business-to-business arm to be a strong contributor to revenues in 2020, thanks to the Tidal Assist Ventilator.

On the flip side, the company reported decline in business-to-business international and domestic revenues in the quarter under review. Also, decline in direct-to-consumer revenues during the quarter is concerning. The significant contraction in gross margin and the operating loss add to the woes.

Zacks Rank and Key Picks

Inogen currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While PerkinElmer carries a Zacks Rank #1 (Strong Buy), the other two sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Click to get this free report

PerkinElmer, Inc. (PKI): Free Stock Analysis Report

Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report

OPKO Health, Inc. (OPK): Free Stock Analysis Report

Inogen, Inc (INGN): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More