INGN Stock Gains Following Q3 Earnings Beat, Adjusted Gross Margin Up

Bruker Corporation BRKR recently announced a new technology, EpicIF (Enhanced photobleaching in cyclic immunofluorescence), to further enhance the CellScape Precise Spatial Proteomics platform for highly multiplexed immunofluorescence (IF).

The new technology is likely to enhance the CellScape platform by expanding antibody compatibility and doubling throughput while maintaining tissue integrity and lack of cross-reactivity.

Likely Trend of BRKR Stock Following the News

Following the announcement, shares of the company moved nearly 4.6% south to $57.73 at Friday’s close. In the year-to-date period, BRKR shares have plunged 21.5% compared with the industry’s decline of 4%. The S&P 500 increased 26.1% in the same time frame.

Meanwhile, BRKR currently has a market capitalization of $8.8 billion.

More on BRKR’s CellScape Precise Spatial Proteomics Platform

Launched in 2022, The CellScape Spatial Proteomics Platform is an advanced platform designed to analyze protein expression within cellular contexts, offering high-resolution insights into spatial proteomics.

This platform allows researchers to precisely map proteins in tissue samples, which can reveal cell-specific protein patterns, interactions, and functions within complex tissue architectures. By combining spatial information with proteomic data, CellScape enhances understanding of cellular behavior and disease mechanisms, facilitating breakthroughs in cancer research, drug discovery, and personalized medicine.

CellScape captures minute morphological characteristics and the full range of protein expression in a biological sample, from the least to the most abundant. The platform also utilizes directly-labeled primary antibodies, enabling a robust and modular chemistry that allows researchers to build assays by combining panels and/or individual markers, even after the conclusion of an experimental run.

More on BRKR’s EpicIF Technology

With the new EpicIF technology, Bruker further advanced CellScape chemistry by expanding the range of compatible commercially available fluorophore-conjugated antibodies by nearly 10-fold, simplifying assay development and increasing throughput by up to two-fold.

EpicIF enhances photobleaching efficacy by combining a proprietary reagent with visible light to gently erase fluorescence signals from nearly any fluorophore. Like the prior version, the epitopes are preserved while maintaining tissue integrity.

EpicIF is supported by the concurrent release of new software, CellScape Navigator, which introduces a more intuitive user interface and easy experiment setup. EpicIF and CellScape Navigator will likely be available as upgrades to current CellScape instruments.

Favorable Industry Prospects for BRKR

Per a reportby Grand View Research, the global spatial proteomics market size was valued at $77.6 billion in 2023 and is expected to witness a CAGR of 14.8% from 2024-2030.

The market has seen significant growth, driven by technological advancements and increasing demand for in-depth protein analysis. One of the primary drivers is the rapid development of advanced imaging and mass spectrometry techniques that enable the visualization and quantification of proteins within their native tissue environments.

Bruker’s Zacks Rank & Stocks to Consider

BRKR carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the broader medical space are AngioDynamics ANGO, Quest Diagnostics DGX and RadNet RDNT. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.

Quest Diagnostics’ shares have risen 42% year to date compared with the industry's 14.9% growth.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 98.2%.

RDNT’s shares have soared 93.7% year to date compared with the industry’s 14.8% growth.

Zacks Investment Research

Amedisys, Inc. AMED reported adjusted earnings per share (EPS) of $1.00 in the third quarter of 2024, up 2% year over year. However, the metric missed the Zacks Consensus Estimate by 12.3%.

The quarter’s adjustments include certain merger-related expenses and other (income)/expenses, net.

GAAP EPS was 51 cents compared with 79 cents in the corresponding period of 2023.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Following the earnings announcement, AMED’s shares lost 0.1% to reach $96.71 last Friday.

AMED’s Q3 Revenues

Net service revenues totaled $587.7 million, up 5.7% year over year. The top line missed the Zacks Consensus Estimate marginally by 0.1%.

AMED’s Q3 Segmental Performance

Net service revenues from the Home Health division totaled $372.1 million, up 5.8% year over year.

Within the segment, Medicare revenues of $212.1 million decreased 2.7% year over year. Non-Medicare revenues improved 19.7% year over year to $160 million.

Within the Hospice division, net service revenues were $207.9 million (up 3.8% year over year), including Medicare revenues of $197.8 million (up 4.7%) and non-Medicare revenues of $10.1 million (down 10.6%).

The High Acuity Care segment reported net service revenues of $7.7 million compared with $4.4 million in the year-ago quarter. The Corporate segment did not register any recognizable revenues in the third quarter.

Margins

The company's gross profit climbed 2.2% to $250.1 million in the quarter under review. However, the gross margin fell 142 basis points (bps) to 42.6% due to an 8.3% increase in the cost of services (including depreciation).

SG&A expenses on salaries and benefits rose 4.4% to $134.8 million. Other expenses fell 0.9% to $56.8 million. The adjusted operating profit amounted to $58.5 million, up 0.4% from the year-ago level. The adjusted operating margin contracted 52 bps to 9.9% from the prior-year figure.

AMED’s Q3 Liquidity and Cash Position

Amedisys exited the third quarter with cash and cash equivalents of $245.4 million compared with $149.9 million at the end of the second quarter of 2024. The company's long-term obligations (excluding the current portion) totaled $344.4 million at the end of the third quarter of 2024 compared with $351.4 million at the end of the second quarter.

Cumulative net cash provided by operating activities at the end of the third quarter was $151.4 million compared with $76.9 million a year ago.

Developments on the Pending Merger

Amedisys’ impending merger with UnitedHealth Group’s Optum, announced in June 2023, brings together two organizations dedicated to providing compassionate, value-based, comprehensive care to patients and their families. The deal is expected to be closed in the second half of 2024.

On June 28, 2024, Amedisys, UnitedHealth Group and certain of their respective subsidiaries entered into a purchase agreement and agreements relating to the sale of certain Amedisys home health care centers and certain UnitedHealth Group care centers to VCG Luna, LLC, an affiliate of VitalCaring. The divestiture is subject to several conditions, including the successful closing of the merger.

Amedisys, Inc. Price, Consensus and EPS Surprise

Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote

Our Take

Amedisys ended the third quarter of 2024 with lower-than-expected results, wherein both earnings and revenues missed estimates. Home Health service revenues benefited from total volume growth as well as Medicare and per-visit rate increases. The Hospice segment’s growth was supported by an increase in reimbursement (effective Oct. 1, 2023) and a slight increase in the average daily census. The High Acuity Care segment achieved its highest total admissions volume since inception during the quarter.

However, the cost of services in the Hospice and Home Health segments rose mainly due to planned wage increases, wage inflation, investments in hospice clinical staffing and an increase in health insurance costs.

On the flip side, the contraction of both margins in the quarter does not bode well for the stock. On a positive note, the company’s bottom line surged in the quarter.

AMED’s Zacks Rank & Key Picks

AMED currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Phibro Animal Health PAHC, Quest Diagnostics DGX and HealthEquity HQY.

Phibro Animal Health reported fourth-quarter fiscal 2024 adjusted earnings of 41 cents per share, which topped the Zacks Consensus Estimate by 20.6%. Revenues of $273.2 million beat the Zacks Consensus Estimate by 4.1%. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PAHC’s fiscal 2025 earnings are expected to surge 31.9% compared with the industry’s 11.6% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.1%.

Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30 per share, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%.

DGX carries a Zacks Rank #2 (Buy) at present. DGX’s 2024 earnings are expected to surge 2.1% year over year. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.

HealthEquity, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2025 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate by 22.9%. Revenues of $299.9 million topped the Zacks Consensus Estimate by 5.4%.

HQY has an estimated long-term earnings growth rate of 28.2% compared with the industry’s 13.4%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.8%.

Zacks Investment Research

Haemonetics Corporation HAE delivered adjusted earnings per share (EPS) of $1.12 in the second quarter of fiscal 2025, up 13.1% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.8%.

On a GAAP basis, the EPS was 66 cents compared with 48 cents in the prior-year quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Following the earnings announcement on Nov. 7, shares of HAE increased 1% in Friday’s session, finishing at $87.42.

HAE’s Q2 Total Revenues

Revenues increased 8.6% (up 3.7% on an organic basis) to $345.5 million in the second quarter of fiscal 2025. The top line beat the Zacks Consensus Estimate by 0.7%.

HAE’s Q2 Segmental Details

At Plasma, revenues of $138.6 million (accounting for 40.1% of the total revenues) were down 3% year over year (same on an organic basis) in the reported quarter. Our model projected the unit’s revenues to be $135.4 million.

The decrease resulted from lower sales volumes in North America is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.

Revenues at Blood Center (19.8%) fell 1.6% (down 0.9% on an organic basis) to $68.5 million. Our model forecast stood at $67.6 million. The downside was due to declines in the Whole Blood business.

Hospital revenues (40.1%) rose 30.9% (up 15.8% on an organic basis) to $138.4 million. Our model projected $138.2 million in revenues for this segment.

The revenue increase was led by product lines within the Interventional Technologies franchise and the benefits of Sensor Guided Technologies and Esophageal Protection that were recently acquired. Growth in the Vascular Closure and Blood Management Technologies also contributed.

Haemonetics Corporation Price, Consensus and EPS Surprise

Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote

HAE’s Margin Performance

In the second quarter of fiscal 2025, the company-adjusted gross margin was 56.7%, up 270 basis points (bps) year over year. The primary drivers of the increase were volume, mix and price.

Company-adjusted operating expenses, as a percentage of revenues, were 32.5% in the second quarter of fiscal 2025 compared with 34.2% in the prior-year period.

The decrease was driven by operating leverage and decreased performance-based compensation, partially offset by costs associated with the operations of recent acquisitions and increased headcount.

The company-adjusted operating income was $83.5 million in the quarter under discussion, up 22.2% year over year. The adjusted operating margin was 24.2%, up 270 bps from the year-ago quarter’s levels.

HAE’s Financial Position

Haemonetics exited the second quarter of fiscal 2025 with cash and cash equivalents of $299.3 million compared with $344.4 million at the end of the fiscal first quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal first-quarter figure.

The cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2025 was $48.8 million compared with $99.1 million in the year-ago period.

HAE’s Updated 2025 Guidance

The company now expects fiscal 2025 GAAP revenue growth in the range of 5-8% on a reported basis (same as earlier).

Organic revenue growth is anticipated in the range of 1-4% (earlier 0-3%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.

HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75 (unchanged). The Zacks Consensus Estimate for the same is pegged at $4.59.

Our Take on HAE

Haemonetics exited the second quarter of fiscal 2025 with earnings and revenues topping estimates. The solid performance reflects the company’s progress with the execution of its long-range plan and response to market trends. The company continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies, while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. Expansion of both margins in the quarter bodes well as well.

Meanwhile, both Plasma and Blood Center businesses saw a decrease in revenues in the quarter.

HAE’s Zacks Rank & Other Key Picks

Haemonetics currently carries a Zacks Rank #2 (Buy).

Some other stocks from the broader medical space are Quest Diagnostics DGX, Intuitive Surgical ISRG and Boston Scientific Corporation BSX.

Quest Diagnostics reported third-quarter 2024 adjus

ted earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.

Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.

ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.

Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.

BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Zacks Investment Research

For Immediate Release

Chicago, IL – November 11, 2024 – Stocks in this week’s article are Greenbrier Companies Inc. GBX, Walmart Inc. WMT, Leidos Holdings Inc. LDOS, InterDigital, Inc. IDCC and ResMed Inc. RMD.

5 Dividend Stocks to Buy on Trump Win and Interest Rate Cut

Donald Trump’s win and the Fed’s second rate cut this year have brought back the lure for dividend investing. Trump's pro-growth policies are expected to drive inflation higher and dividend-paying stocks can serve as a hedge against inflation. Meanwhile, the Fed cut rates by 25 bps after a 50-bps cut in September. The lower rates have made dividend investing tempting.

While several dividend stocks could provide capital appreciation, zeroing in on stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. Further, dividend-paying securities are major sources of consistent income when returns from the equity market are at risk.

We have selected five dividend growth stocks — Greenbrier Companies Inc., Walmart Inc., Leidos Holdings Inc.,InterDigital, Inc. and ResMed Inc. — that could be compelling picks.

Why Dividend Growth?

Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.

Additionally, these stocks have superior fundamentals that make them quality and promising investments for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that such increases are likely in the future.

Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.

Just these few criteria narrowed down the universe from over 7,700 stocks to just 11.

Here are five of the 11 stocks that fit the bill:

Oregon-based Greenbrier is a leading supplier of transportation equipment and services to the railroad and related industries. The company saw a solid earnings estimate of 80 cents over the past 30 days for the fiscal year ending in August 2025 and has an estimated growth rate of 4.8%.

Greenbrier currently has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arkansas-based Walmart has evolved from being just a traditional brick-and-mortar retailer into an omnichannel player. It is engaged in the operation of retail, wholesale and other units worldwide. The company has an estimated earnings growth rate of 9.91% for the fiscal year ending January 2025 and delivered an average earnings surprise of 6.89% in the last four reported quarters.

Presently, WMT has a Zacks Rank #2 and a Growth Score of A.

Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It saw a solid earnings estimate of 50 cents over the past 30 days for this year and has an estimated earnings growth rate of 29.4%.

Leidos Holdings carries a Zacks Rank #1 and has a Growth Score of A.

Delaware-based InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. IDCC saw a negative earnings estimate of a penny over the past 30 days for this year. It has an estimated earnings growth rate of 12.2%

InterDigital has a Zacks Rank #1 and a Growth Score of A.

California-based ResMed holds a major position as a designer, manufacturer, as well as a distributor of generators, masks and related accessories for the treatment of sleep-disordered breathing and other respiratory disorders worldwide. The stock saw a positive earnings estimate revision of 20 cents over the past 30 days for the fiscal year (ending June 2025) and has an estimated earnings growth rate of 19.4%.

ResMed has a Zacks Rank #2 and a Growth Score of A.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2367458/5-dividend-growth-stocks-to-buy-on-trump-win-fed-rate-cut

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Zacks Investment Research

For the quarter ended September 2024, Inogen (INGN) reported revenue of $88.83 million, up 5.8% over the same period last year. EPS came in at -$0.25, compared to -$1.97 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $83.68 million, representing a surprise of +6.16%. The company delivered an EPS surprise of +50.98%, with the consensus EPS estimate being -$0.51.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Inogen performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Sales revenue: $74.93 million compared to the $66.81 million average estimate based on two analysts. The reported number represents a change of +10.2% year over year.
• Revenue- Rental revenue: $13.91 million compared to the $15.21 million average estimate based on two analysts. The reported number represents a change of -13.1% year over year.
• Gross profit- Rental revenue: $6.01 million compared to the $7.26 million average estimate based on two analysts.
• Gross profit- Sales revenue: $35.34 million compared to the $28.85 million average estimate based on two analysts.

View all Key Company Metrics for Inogen here>>>

Shares of Inogen have returned +6.3% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Zacks Investment Research