- Inogen was hit hard on management's guidance for weaker second half revenue, as semiconductor supply shortages will limit sales volumes and drive weaker gross margins.
- Underlying sales trends have been better than expected, with growth not only in the B2B and rental channels, but the historically core DTC channel as well.
- COVID-19 has a mixed near-term impact on the business, with the pandemic discouraging some usage in the short-term, but also creating new customers who need supplemental oxygen.
- I continue to believe Inogen is following a better long-term strategy, and the valuation is getting pretty interesting relative to the likely growth, even though the second half looks capped.
For further details see:
Supply Chain Issues Knock Inogen Back, But Underlying Growth Is Encouraging