Benzinga | Jul 29, 2021 11:11AM EDT

Omnicell Beats On Q2 Earnings, Issues Promising Q3 Guidance

* Omnicell Inc (NASDAQ:OMCL) reported second-quarter FY21 revenue growth of 36.6% year-on-year to $272.7 million, beating the analyst consensus of $268.5 million.

* The increase in revenues reflects momentum in commercial business and customer implementations and pandemic recovery.

* Product revenue increased 41.7% Y/Y to $196.9 million, while Services and other revenue rose 25% to $75.8 million.

* The non-GAAP gross margin expanded 670 bps to 51.7%, while the non-GAAP operating margin expanded by 1,060 bps to 18.3%. The non-GAAP EBITDA margin expanded 930 bps to 22.4%.

* Non-GAAP EPS of $0.97 beat the analyst consensus of $0.82.

* The company held $614.2 million in cash and equivalents. It generated $71.8 million in operating cash flow during the quarter.

* The company focuses on improving patient health outcomes and supporting its healthcare systems partners on their journey to the Autonomous Pharmacy, Chair and CEO Randall Lipps stated.

* Outlook: Omnicell sees Q3 revenue of $281 million - $286 million, above the consensus of $278.7 million. It sees non-GAAP EPS of $0.89 - $0.94 versus the consensus of $0.92.

* For 2021, it forecast total revenues of $1.100 billion to $1.115 billion, up from the prior view of $1.085 billion to $1.105 billion, versus the consensus of $1.10 billion. It sees non-GAAP EPS of $3.65 - $3.75, up from the previous $3.50 - $3.70 outlook, compared to the consensus of $3.59.

* Price action: OMCL shares traded lower by 5.06% at $140.67 in the on the last check Thursday.