Omnicell (NASDAQ:OMCL), Inc. OMCL recently announced preliminary financial results for 2020 as well as provided 2021 guidance.
The company is scheduled to provide its complete fourth-quarter 2020 and full-year 2020 results plus 2021 guidance on Feb 1, 2021.
Following the preliminary result announcement on Jan 13, shares of the company inched up 2.5% to $120.67.
Results in Detail
Per the preliminary release, for 2020, the company anticipates exceeding its pre-pandemic product booking guidance and also expects to surpass its October 2020 view across all key metrics including revenues, total product bookings and non-GAAP earnings per share.
According to the preliminary report, Omnicell projects its 2020 product bookings to be around $1 billion, surpassing its previously-issued guidance of $865-$900 million. The company predicts 2020 total revenues to be $890-$892 million, topping its past guidance of $881-$887 million. The Zacks Consensus Estimate for the same is pegged at $884.2 million.
The company expects its 2020 GAAP net income to be $28.6-$30.6 million and 2020 non-GAAP EBITDA to be $157-$159 million. It also anticipates its 2020 GAAP earnings in the range of 65-70 cents per share and 2020 adjusted earnings to be $2.46-$2.51. The adjusted EPS view exceeds the company’s previous outlook of $2.35-$2.40. The Zacks Consensus Estimate for the metric is pegged at $2.44 per share.
2021 Guidance
Along with the preliminary announcement, the company provided its 2021 expectations. Omnicell projects total revenues between $1.09 billion and $1.11 billion. This indicates an increase from its preliminary guidance issued on Oct 27, 2020.
The company expects 2021 non-GAAP EBITDA within $228-$240 million. It anticipates adjusted earnings between $3.38 and $3.58 per share. The Zacks Consensus Estimate for adjusted EPS is pegged at $3.29.
Highlights
The company achieved significant growth in new customer wins and bookings plus broadened its portfolio of solutions, both organically and through a lucrative acquisition strategy. It also expedited its shift to cloud technology and reaped high revenue gains from its recurring revenues, long-term, sole-source agreements within the top 300 U.S. health systems as well as a strong product backlog.
2025 Goals
The company set a total revenue target of $1.9-$2 billion for 2025, expecting to witness a 14-15% CAGR for the 2021-2025 forecast period. On an organic basis, it is targeting a CAGR of 11-12% for revenues over the same time period with total organic revenues projected to be $1.65-$1.75 billion for 2025.
The company aims to see a CAGR of around 50% for Software-as-a-Service (SaaS), Subscription Software and Technology-Enabled Services revenues from 2020 to 2025. The same is anticipated to account for 20-30% of Omnicell’s top line by 2025.
Omnicell also envisioned a non-GAAP operating margin target of nearly 21% and a non-GAAP EBITDA margin target of almost 25% by 2025. This reflects a non-GAAP EBITDA margin expansion of almost 400 bps from 2021.
Price Performance
In the past three months, the stock has gained 49.5% compared with 17.6% growth of its industry.
Zacks Rank and Other Key Picks
Omnicell currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks from the broader medical space are Hologic (NASDAQ:HOLX) HOLX, PerkinElmer (NYSE:PKI) PKI and IDEXX Laboratories IDXX. While Hologic flaunts a Zacks Rank of 1, the other two carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a projected long-term earnings growth rate of 17.4%.
PerkinElmer has a projected long-term earnings growth rate of 19.5%.
IDEXX has an estimated long-term earnings growth rate of 15.8%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Omnicell, Inc. (OMCL): Free Stock Analysis Report
Hologic, Inc. (HOLX): Free Stock Analysis Report
PerkinElmer, Inc. (PKI): Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research