Omnicell Delivers Solid Q4 Results On record Bookings; Issues Guidance

Omnicell (OMCL) delivered solid fourth-quarter and full-year results characterized by record bookings and supported by robust customer demand. OMCL shares fell 4.40% to close at $147.60 on February 14.

Omnicell is a U.S. company that provides medication management automation solutions. It also offers adherence tools to healthcare systems and pharmacies.

Omnicell Earnings

Revenue in the quarter was up 25% year-over-year to $311.7 million, beating consensus estimates of $311.07 million. The increase is attributed to the strong demand for the company’s medication management adherence automation solutions. The company also benefited from the acquisition of FDS Amplicare. Full-year revenue was up 27% year-over-year to $1.13 billion.

Omnicell posted non-GAAP net income of $43.5 million or $0.92 a share, in line with consensus estimates. Full-year net income totaled $175.1 million or $3.81 a share, an improvement from $111.3 million or $2.54 a share for the year ended December 31, 2020.

Total product bookings for the year increased 21% year-over-year to $1.22 billion and Omnicell ended the year with a product backlog of $1.25 billion. During the fourth quarter, the company also completed the acquisition of pharmacy software solutions provider MarkeTouch Media and ReCept Holdings, a specialty pharmacy management services provider.

Omnicell expects first-quarter revenue of between $312 million and $318 million. Non-GAAP EBITDA is expected to range between $45 million and $49 million, leading to non-GAAP earnings of between $0.65 and $0.72 a share. Full-year revenues are expected to range between $1.385 billion and $1.410 billion.

Stock Rating

Last week, Berenberg Bank analyst Dev Weerasuriya reiterated a Buy rating on Omnicell with a $176 price target, implying 19.24% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 4 Buys. The average Omnicell price target of $202.50 implies 37.20% upside potential to current levels.

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