Stock Alert: Inogen Surges 14% Despite Earnings Miss

(RTTNews) - Shares of medical devices company Inogen, Inc. (INGN) surged $5.9 or 14.05% on Wednesday despite the company's fourth-quarter results missing estimates. The stock closed the day's trade at $47.88 and has been trading in a range of $37.25- $145.74 in the past one year.

Inogen has also trimmed its full-year net income outlook as it sees lower revenue than previously expected, citing shortage of certain component parts, particularly in the first quarter. The company expects to have a net loss in the first quarter of 2020.

Inogen reported net loss in the fourth quarter of $1.4 million or $0.06 per share compared with net income of $10.0 million or $0.44 per share in the same quarter a year ago. Analysts polled by Thomson Reuters were expecting earnings of $0.10 per share.

Revenue for the quarter declined 8.8% to $78.9 million from $86.5 million in the same period last year. Revenue was affected by a significant amount of unshipped orders, primarily in the domestic business-to-business channel, on certain component part shortages.

Looking forward to full-year, Inogen is maintaining its revenue guidance range provided on January 13, 2020, of $385 to $400 million. The consensus estimates stand at $386 million.

Scott Wilkinson, President, Chief Executive Officer and Director said, "Regarding the component part shortage that contributed to unshipped units in the fourth quarter of 2019, we have worked diligently with our supplier, and I'm pleased to say we have currently returned to normal production of the Inogen One G5 now in the first quarter of 2020. However, this situation will have an impact on revenue and profitability in the first quarter of 2020."