Inogen Stock Plunges As Supply Chain Constraints Pile Up To Hit 2H FY21; Analysts Downgrade Stock

Inogen Inc INGN reported Q2 revenue of $101.6 million, +41.7% Y/Y, beating the consensus of $88.75 million.
The sales growth was driven primarily due to strong consumer demand, improved average selling prices in all channels, and reduced COVID-19 pandemic-related impacts.
The Company reported domestic direct-to-consumer revenue of $40.9 million, a 35.6% increase. Rental revenue was $11.3 million, an 85.2% increase.
“We are pleased with our recovery in our core business. Demand and average selling prices for portable oxygen concentrators increased primarily due to higher consumer confidence and higher COVID-19 vaccination rates, leading to increased patient ambulation in Q2,” said Nabil Shabshab, president and CEO.
Inogen reported an operating income of $11.7 million, adjusted EBITDA of $12.4 million.
Inogen posted Q2 EPS of $0.22, beating the consensus of EPS loss of $(0.11).
Inogen expects revenue growth constraints starting Q3 FY21, however, until the availability of semiconductor chips improves.
Inogen expects total revenue in 2H FY21 to be lower than 1H FY21, with the most significant negative impact on its domestic business-to-business channel.
It expects net losses in Q3 & Q4 and a net loss for full-year 2021, reflecting the anticipated supply-constrained revenue decline, increased cost of goods sold per unit, and higher operating expense in the 2H of 2021 compared to 1H of 2021.
Keybanc downgraded the stock from Overweight to Sector Weight.
Price Action: INGN shares are down 32% at $55.95 during the market session on the last check Thursday.

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