Omnicell, Inc. OMCL reported first-quarter 2025 adjusted earnings per share (EPS) of 26 cents compared with 3 cents in the year-ago period. The metric beat the Zacks Consensus Estimate by 62.5%.
Adjustments include one-time expenses like share-based compensations, the amortization of acquired intangibles, acquisition-related expenses and RDS restructuring.
GAAP loss per share was 15 cents compared with a loss of 34 cents in the year-ago period.
Following the announcement, OMCL shares gained 3.7% in the after-market trading session yesterday.
OMCL’s Q1 Revenues
Revenues totaled $269.7 million, up 9.6% year over year. The figure beat the Zacks Consensus Estimate by 4.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Segmental Analysis of Omnicell’s Q1 Revenues
On a segmental basis, Product revenues rose 8.9% year over year to $145.2 million in the reported quarter.
Service and other revenues climbed 10.3% year over year to $124.5 million.
OMCL’s Margin Performance
In the quarter under review, the gross profit increased 19.8% year over year to $110.9 million. The gross margin expanded 351 basis points (bps) to 41.1% despite a 3.4% rise in the cost of revenues.
Operating expenses amounted to $122.6 million, up 7.1% year over year. The company incurred an operating loss of $11.6 million compared with $21.8 million in the year-ago period.
Omnicell’s Financial Update
Omnicell exited the first quarter of 2025 with cash and cash equivalents of $386.8 million compared with $369.2 million at the end of the fourth quarter of 2024.
Net cash flow provided by operating activities in the first quarter was $25.9 million compared with $49.9 million in the year-ago period.
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. Price, Consensus and EPS Surprise
Omnicell, Inc. price-consensus-eps-surprise-chart | Omnicell, Inc. Quote
Omnicell Updates 2025 EPS Outlook
For the full year, the company still expects total revenues to be in the range of $1.105-$1.155 billion.
Of this, product revenues are expected to be in the band of $610-$640 million and service revenues in the $495-$515 million range. The Zacks Consensus Estimate for total revenues is pegged at $1.13 billion.
The adjusted EPS for the year is now expected to be in the range of $1.00-$1.65 (down from the previous guidance of $1.65-$1.85). The Zacks Consensus Estimate is pegged at $1.78.
For the second quarter of 2025, Omnicell expects revenues to be between $270 million and $280 million, including product revenues of $148-$153 million and service revenues of $122-$127 million. The adjusted EPS for the second quarter is expected to be between 19 cents and 32 cents.
Our Take on OMCL
Omnicell delivered better-than-expected earnings and revenues in the first quarter of 2025. The top line benefited from the increased contribution of the XT Amplify program, along with continued growth in the SaaS and Expert Services (formerly Advanced Services), including an increase in revenues from Specialty Pharmacy Services offerings. Impressively, the company made a return to year-over-year revenue growth and is on track to meet its objective of delivering consistent GAAP profitability. The expansion of the gross margin in the quarter is highly impressive.
Omnicell had several notable wins in the first quarter, including the opening of the Austin Innovation Lab, as well as several leading healthcare organizations choosing Omnicell solutions to increase pharmacy and nursing efficiency.
On the flip side, the company incurred an operating loss in the quarter, which does not bode well for the stock. Also, the company’s lowered 2025 adjusted EPS guidance adds to the worry.
Zacks Rank & Key Picks
Omnicell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 70.9%.
Veeva Systems, sporting a Zacks Rank #2 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.
VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.9%.
Masimo, currently sporting a Zacks Rank #2, reported first-quarter 2025 adjusted EPS of $1.36, which surpassed the Zacks Consensus Estimate by 9.7%. Revenues of $372 million topped the Zacks Consensus Estimate by 1.3%.
MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.
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