Shares of Inogen (NSDQ:INGN) came under intense pressure today after the home oxygen generator maker yesterday posted first-quarter results that missed the mark on Wall Street and lowered its top-line outlook for the rest of the year.
Goleta, Calif.-based Inogen said profits slid -49.5% to $5.4 million, or 24¢ per share, on sales growth of 15.3% to $84.8 million for the three months ended March 31. Analysts on The Street were looking for EPS of 30¢ on sales of $89.6 million.
“The first quarter of 2019 was a tough quarter for us given the decline in domestic business-to-business sales and the increased direct-to-consumer sales and marketing expenditures,” president & CEO Scott Wilkinson said in prepared remarks. “We believe there is still a large opportunity for portable oxygen concentrator adoption worldwide; however, there are patient access issues given the current reimbursement environment and the restructuring challenges that some providers are facing in converting their oxygen business to a non-delivery model. As a result, we are focused on multiple initiatives to drive sales and marketing efficiencies and build a more predictable revenue stream over time.”
Inogen cut its revenues outlook for the full year, saying it now expects to log sales of $405 million to $415 million, down from $430 to $440 million previously.
INGN shares were off by -23.3% to $69.95 apiece today in mid-morning trading.