Shares of Omnicell have reached a seven-year low following the company’s downward revision of its 2023 earnings and revenue guidance. This decline in demand has been a significant factor.
Stock Performance and Revised Projections
Currently trading at $29.69, Omnicell’s stock has experienced a 17% decrease during midday trading. Year-to-date, shares have fallen by 41%, hitting their lowest point since April 2016.
In terms of revenue, the healthcare-technology company now expects to generate $1.135 billion to $1.155 billion in 2023, compared to the previously stated guidance of $1.16 billion to $1.2 billion.
Adjusted earnings, excluding one-time items, are projected to be in the range of $1.65 to $1.80 per share for the year, instead of the previously estimated $1.75 to $2 per share.
CEO’s Statement and Positive Third-Quarter Results
Randall Lipps, Chief Executive of Omnicell, acknowledged the downgrade and attributed it to a decrease in demand. However, the company’s third-quarter results surpass analyst expectations.
In Q3, Omnicell reported a profit of $5.6 million, or 12 cents per share, compared to $16.8 million, or 37 cents per share, during the same period the previous year.
Adjusted earnings came in at 62 cents per share, exceeding analysts’ forecast of 47 cents per share according to FactSet data.
Despite the decline in revenue, which fell 14% to $298.7 million, it still managed to outpace the market consensus of $295.5 million as determined by analysts polled by FactSet.