Inogen raises FY17 revenue view to $239M-$243M from $233M-$239M
Consensus $238.31M. Inogen is increasing its guidance range for full year 2017 revenue to $239 to $243 million, which represents year-over-year growth of 17.8% to 19.8%, and compares to previous guidance of $233 to $239 million. The Company expects direct-to-consumer sales and domestic business-to-business sales to be our strongest growing channels and to have similar growth rates, and international business-to-business sales to have a more modest growth rate where the market penetration strategy is expected to be primarily focused on the European markets. Inogen expects rental revenue to decline in 2017 compared to 2016 by approximately 30% based on lower average rental revenue per patient and a focus on sales versus rentals. Inogen is increasing its guidance range for full year 2017 net income and Adjusted net income to $25 to $27 million, which represents 21.8% to 31.6% year-over-year growth, and compares to previous guidance of $22 to $24 million. Inogen estimates that the adoption of ASU No. 2016-09 will lead to a decrease in provision for income taxes of approximately $8.0 million in 2017 based on forecasted stock activity, which will continue to lower its effective tax rate. Excluding the $8.0 million decrease in provision for income taxes expected in 2017, the Company expects an effective tax rate of approximately 36% compared to its previous expectations of 37%. After giving effect to ASU No. 2016-09, the Company expects an effective tax rate including stock compensation deductions to vary quarter-to-quarter depending on the amount of pre-tax net income and on the timing and size of stock option exercises. Inogen is narrowing its guidance range for full year 2017 Adjusted EBITDA to $48 to $50 million, which represents year-over-year growth of 10.6% to 15.2%, and compares to previous guidance of $46 to $50 million.