Why Omnicell Stock Crushed the Market Today

Healthcare tech company Omnicell (NASDAQ: OMCL) was quite the picture of health on Thursday, at least as far as its equity was concerned. An encouraging quarterly earnings report sent its shares heading steeply uphill, to the point where they finished the trading day with an almost 14% gain in price. That looked especially good next to the 1% drop of the S&P 500 (SNPINDEX: ^GSPC) that session.

Healthy improvements

Revenue for Omnicell in its third quarter amounted to $311 million, notching the company a 10% gain in the key line item. Going in the opposite direction was net income not according to generally accepted accounting principles (GAAP), which slid to $24 million ($0.51 per share) from the year-ago profit of $26 million.

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Despite the slight bottom-line erosion, both metrics came in well above the average analyst estimates. Pundits tracking Omnicell stock collectively felt the company would earn under $296 million, and non-GAAP (adjusted) net income of only $0.36 per share.

Omnicell said that its foundational point-of-care connected devices continued to propel revenue growth. It added that rises in connected devices and technical services also played a role in this.

Top-line guidance topped up

It's clear that management is expecting these dynamics to continue, as it raised its guidance for total revenue -- it now feels it'll take in nearly $1.18 billion to just under $1.19 billion this year. Adjusted earnings per share are anticipated to be $1.63 to $1.73 for 2025.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.