jurgenfr
Omnicell, Inc. (NASDAQ:OMCL) lost ~13% pre-market Thursday after the company, with its Q3 2023 results, revised its full-year outlook and announced an enterprise-wide initiative to reduce costs.
The California-based developer of medication management solutions said that the cost containment exercise would also involve layoffs and generate $45M–$55M in annualized cost savings, mostly related to operating expenses.
The company projects most of its benefits will be realized at the start of Q1 2024, with a smaller portion anticipated in the remainder of the year.
In connection with the plan, Omnicell (OMCL) expects to recognize $12M–$18M of one-off charges related to restructuring and related activities, mostly in Q4 2023. It anticipates most of the activities related to the program will conclude by Q2 2024.
However, the company’s Q3 2023 financials exceeded Street forecasts even as revenue fell ~14% YoY to $299M, indicating lower point-of-care revenues. Its forecast for Q4 2023 revenue at $247M–$267M stands below $297.1M in the consensus.
As for near-term guidance, Omnicell (OMCL) lowered its full-year revenue outlook to $1.135B–$1.155B from the $1.16B–$1.20B it projected three months ago and compared to $1.18B in the consensus.