Latest news with #OMCL
Yahoo
07-07-2025
- Business
- Yahoo
3 Reasons to Sell OMCL and 1 Stock to Buy Instead
Shareholders of Omnicell would probably like to forget the past six months even happened. The stock dropped 31.2% and now trades at $29.83. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Omnicell, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Even though the stock has become cheaper, we don't have much confidence in Omnicell. Here are three reasons why we avoid OMCL and a stock we'd rather own. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Omnicell's sales grew at a mediocre 4.2% compounded annual growth rate over the last five years. This was below our standard for the healthcare sector. Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right. With just $1.14 billion in revenue over the past 12 months, Omnicell is a small company in an industry where scale matters. This makes it difficult to build trust with customers because healthcare is heavily regulated, complex, and resource-intensive. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Omnicell, its EPS declined by 7.6% annually over the last five years while its revenue grew by 4.2%. This tells us the company became less profitable on a per-share basis as it expanded. We cheer for all companies helping people live better, but in the case of Omnicell, we'll be cheering from the sidelines. Following the recent decline, the stock trades at 16.2× forward P/E (or $29.83 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - we think there are better stocks to buy right now. We'd suggest looking at one of our all-time favorite software stocks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Omnicell's New Perioperative Clinic Setting Products May Boost Stock
Omnicell OMCL has announced new products aimed at streamlining workflows and improving inventory visibility and management in perioperative and clinic settings. The offerings are a new line of RFID products, MedTrack, and a web-enabled software product named MedVision. The latest development expands the company's connected platform, intended to automate medication management processes and deliver intelligent insights to drive clinical and operational outcomes across all settings of care. After the announcement yesterday, OMCL shares remained stable in the after-hours session. The ongoing staffing shortages in healthcare facilities and enterprise expansion lead to disconnected systems and processes, which often introduce opportunities for error and risk. By delivering scalable solutions that are designed to grow visibility, enhance intelligence and streamline workflows, Omnicell is helping close gaps in medication management across the care continuum. Accordingly, we expect the latest development to positively boost market sentiment toward OMCL stock. Omnicell has a market capitalization of $1.31 billion at present. Going by the Zacks Consensus Estimate, the company's 2025 revenues are expected to improve 1.4%. In the last reported quarter, it delivered an earnings surprise of 62.5%. The company believes that the path to the industry-defined vision of the Autonomous Pharmacy demands full visibility into medication use throughout the health system. The new MedTrack line of RFID products is designed to increase the accuracy and visibility of medications, streamline workflows and free time for clinicians to focus on higher-value work. Image Source: Zacks Investment Research The initial offering is MedTrack – OR, an RFID-enabled, single-deep drawer built to support operating room and anesthesia workflows and automatically track non-controlled medications without disrupting provider workflows. In the event of surgical emergencies, MedTrack OR is designed to provide instant access to essential medications while automatically updating Anesthesia WorkStation inventory counts once the user logs out. Meanwhile, Omnicell's MedVision software helps a health system's outpatient clinics restock medications directly from central pharmacies or Centralized Services Centers (CSCs). The solution is intended to provide real-time clinic medication inventory data accessible through intuitive dashboards. It is engineered to trigger automatic reordering from the central pharmacy or CSC when established par levels get low. The software also offers mobile device support for on-the-go inventory management in clinic storerooms and an optional integration with Epic medication administration record (MAR), which is built to automatically update inventory when a medication is administered from the electronic health record. Per a Mordor Intelligence report, the global Hospital Asset Tracking and Inventory Management Systems market is expected to reach $31.05 billion in 2025 and expand at a compound annual growth rate (CAGR) of 5.5% through 2030. The market continues to witness significant transformation driven by technological advancements and the need for operational efficiency. Concurrently, Omnicell announced the opening of its Austin, Texas Innovation Lab, which will serve as a hub focused on addressing challenges along the medication and supply journey. The facility will develop new technologies that are designed to solve evolving challenges faced by the healthcare industry. Over the past three months,Omnicell shares have declined 27.4% compared with the industry's fall of 9.5%. Omnicell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Hims & Hers Health HIMS, Inspira Medical Systems INSP and Cardinal Health CAH. Each of these carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Estimates for Hims & Hers Health's 2025 earnings per share have jumped 9.4% to 70 cents in the past 30 days. Shares of the company have surged 336.5% in the past year compared with the industry's 21% growth. HIMS' earnings surpassed estimates in two of the trailing four quarters, matched in one and missed on another occasion, the average surprise being 19.6%. Inspira shares have dipped 2% in the past year. Estimates for the company's 2025 earnings per share have increased 2.6% to $2.26 in the past 30 days. INSP's earnings beat estimates in each of the trailing four quarters, the average surprise being 356.9%. In the last reported quarter, it posted an earnings surprise of 143.5%. Estimates for Cardinal Health's fiscal 2025 earnings per share have increased 1.9% to $7.94 in the past 30 days. Shares of the company have jumped 50.4% in the past year against the industry's 3.5% fall. CAH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. In the last reported quarter, it delivered an earnings surprise of 9.3%. 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 Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Omnicell, Inc. (OMCL) : Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
06-05-2025
- Business
- Yahoo
Omnicell's (NASDAQ:OMCL) Q1 Sales Top Estimates But Stock Drops
Healthcare tech company Omnicell (NASDAQ:OMCL) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 9.6% year on year to $269.7 million. On the other hand, next quarter's revenue guidance of $275 million was less impressive, coming in 1.8% below analysts' estimates. Its non-GAAP profit of $0.26 per share was 27.1% above analysts' consensus estimates. Is now the time to buy Omnicell? Find out in our full research report. Omnicell (OMCL) Q1 CY2025 Highlights: Revenue: $269.7 million vs analyst estimates of $260 million (9.6% year-on-year growth, 3.7% beat) Adjusted EPS: $0.26 vs analyst estimates of $0.20 (27.1% beat) Adjusted EBITDA: $23.59 million vs analyst estimates of $21.46 million (8.7% margin, 9.9% beat) The company reconfirmed its revenue guidance for the full year of $1.13 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $1.33 at the midpoint, a 24.3% decrease EBITDA guidance for the full year is $122.5 million at the midpoint, below analyst estimates of $145.1 million Operating Margin: -4.3%, up from -8.9% in the same quarter last year Free Cash Flow Margin: 3.8%, down from 16.7% in the same quarter last year Market Capitalization: $1.43 billion Company Overview Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency. Sales Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Omnicell grew its sales at a mediocre 4.2% compounded annual growth rate. This was below our standard for the healthcare sector and is a tough starting point for our analysis. Omnicell Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Omnicell's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 5.4% annually. Omnicell Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its most important segment, Product. Over the last two years, Omnicell's Product revenue averaged 12% year-on-year declines. This segment has lagged the company's overall sales. This quarter, Omnicell reported year-on-year revenue growth of 9.6%, and its $269.7 million of revenue exceeded Wall Street's estimates by 3.7%. Company management is currently guiding for flat sales next quarter.
Yahoo
06-05-2025
- Business
- Yahoo
Omnicell: Q1 Earnings Snapshot
FORT WORTH, Texas (AP) — FORT WORTH, Texas (AP) — Omnicell Inc. (OMCL) on Tuesday reported a loss of $7 million in its first quarter. On a per-share basis, the Fort Worth, Texas-based company said it had a loss of 15 cents. Earnings, adjusted for one-time gains and costs, were 26 cents per share. The Omnicell Inc. posted revenue of $269.7 million in the period, beating Street forecasts. Three analysts surveyed by Zacks expected $258.7 million. For the current quarter ending in June, Omnicell expects its per-share earnings to range from 19 cents to 32 cents. The company said it expects revenue in the range of $270 million to $280 million for the fiscal second quarter. Omnicell expects full-year earnings in the range of $1 to $1.65 per share, with revenue ranging from $1.11 billion to $1.16 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on OMCL at
Yahoo
27-04-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock to Target This Week and 2 to Keep Off Your Radar
The stocks in this article have caught Wall Street's attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street's excitement appears well-founded and two where analysts may be overlooking some important risks. Consensus Price Target: $54.14 (64.9% implied return) Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency. Why Do We Think OMCL Will Underperform? Sales tumbled by 7.4% annually over the last two years, showing market trends are working against its favor during this cycle Earnings per share fell by 9.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Omnicell's stock price of $30.76 implies a valuation ratio of 17.2x forward price-to-earnings. If you're considering OMCL for your portfolio, see our FREE research report to learn more. Consensus Price Target: $78.67 (17.3% implied return) With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments. Why Does ANIP Fall Short? Smaller revenue base of $614.4 million means it hasn't achieved the economies of scale that some industry juggernauts enjoy Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew Negative returns on capital show management lost money while trying to expand the business At $69.82 per share, ANI Pharmaceuticals trades at 13.2x forward price-to-earnings. Read our free research report to see why you should think twice about including ANIP in your portfolio, it's free. Consensus Price Target: $89.67 (16.2% implied return) The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products. Why Do We Love TGLS? Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle Excellent operating margin of 27% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled Earnings per share have massively outperformed its peers over the last five years, increasing by 39.8% annually Tecnoglass is trading at $72 per share, or 17x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
