INGN Stock Gains Following Q1 Earnings Beat, Revenues Up Y/Y

Inogen, Inc. INGN incurred an adjusted loss per share of 11 cents for first-quarter 2025, which was narrower than the adjusted loss per share of 45 cents in the year-ago period and the Zacks Consensus Estimate of a loss of 52 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

GAAP loss per share for the quarter was 25 cents, narrower than the year-earlier loss of 62 cents.

INGN’s Revenues in Detail

Inogen registered revenues of $82.3 million for the first quarter, up 5.5% year over year. The figure surpassed the Zacks Consensus Estimate by 3.3%.

At constant exchange rate (CER), total revenues for the reported quarter increased 7.1% year over year.

Per management, the year-over-year uptick in the top line was primarily driven by higher demand and new customer gains across the domestic and international business-to-business channels. However, this was partially offset by lower direct-to-consumer sales and rental revenues.

Shares of this company gained nearly 3.9% in yesterday’s after-hours trading.

Inogen’s Segmental Details

Inogen derives revenues from two sources — rental and sales.

Rental revenues for the reported quarter grossed $13.8 million, down 7.5% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from continued lower average billing rates due to the mixed shift to private payers.

Sales revenues were $68.5 million, up 8.5% from the prior-year quarter.

INGN’s Revenues by Region & Category

Domestic business-to-business sales for first-quarter 2025 amounted to $21.5 million, up 29.9% on a year-over-year basis. Per management, this was driven by increased demand from new customers and resellers.

International business-to-business sales for the reported quarter amounted to $31.9 million, up 22.9% year over year on a reported basis and up 27.9% at CER. Per management, this was driven by an increase in demand from new and existing customers.

Domestic direct-to-consumer sales decreased 26.8% year over year to $15. million for the quarter.

Inogen, Inc Price, Consensus and EPS Surprise

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

Inogen’s Margins

In the quarter under review, Inogen’s adjusted gross profit rose 4.9% from the year-ago period to $39.4 million. However, the adjusted gross margin contracted 20 basis points to 47.9%.

Sales and marketing expenses decreased 11.8% from the year-ago quarter to $23.8 million. Research and development expenses decreased 38.7% year over year to $4 million, while general and administrative expenses decreased 5.2% year over year to $16.2 million. Adjusted operating expenses of $40.7 million declined 12.4% year over year.

Adjusted operating loss totaled $4.4 million compared with the prior-year quarter’s $12.1 million.

INGN’s Financial Position

Inogen exited first-quarter 2025 with cash and cash equivalents of $118.9 million compared with $113.8 million at 2024-end.

The company ended the quarter with no debt on its balance sheet.

Net cash used in operating activities at the end of first-quarter 2025 was $16.8 million compared with net cash used in operating activities of $4.7 million a year ago.

Inogen’s Guidance

Inogen has provided its revenue outlook for the second quarter and 2025.

For the second quarter of 2025, Inogen expects revenues in the range of $89 million-$91 million (reflecting growth of flat to 3% from the comparable second quarter 2024 revenues). The Zacks Consensus Estimate is currently pegged at $91.8 million.

For 2025, Inogen continues to expect revenues in the range of $352 million-$355 million (reflecting growth of 5-6% from the comparable 2024 revenues). The Zacks Consensus Estimate is currently pegged at $352.8 million.

Our Take

Inogen exited the first quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.

INGN finalized the strategic collaboration with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. The strategic collaboration is expected to broaden Inogen’s product portfolio through the distribution of certain respiratory products in the United States and select other territories, expand and enhance Inogen’s innovation pipeline through R&D collaboration, and accelerate the entry of Inogen’s brand into the Chinese market. This looks promising for the stock.

Yet, a decline in domestic direct-to-consumer sales and rental revenues was concerning. Inogen continued to incur operating losses in the first quarter, which did not bode well.

INGN’s Zacks Rank and Key Picks

Inogen currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the industry that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and Boston Scientific Corporation BSX.

CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.

Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1 (Strong Buy).

Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.

Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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