What happened

Shares of Omnicell (NASDAQ:OMCL), a medication management company focused on automating the pharmacy, rose 13% as of 11:20 a.m. EDT on Friday. The jump was caused by a well-received second-quarter earnings report that featured expectation-topping guidance. 

So what

Here's a review of the highlights from the report:

  • Non-GAAP revenue jumped 4% to $188.7 million.
  • Non-GAAP gross margin expanded 380 basis points to 49.1%. 
  • Non-GAAP net income grew 44% to $18.4 million.
  • Non-GAAP EPS was $0.46 per share. This was far ahead of the $0.39 that Wall Street had projected.
Pills are dispensed into bottles on a conveyor belt

Image source: Getty Images.

Turning to guidance, here's what the company is projecting:

  • Third-quarter revenue will land between $200 million and $206 million. The midpoint of this range is ahead of what market watchers were expecting.
  • Third-quarter EPS is expected to land between $0.52 and $0.57.
  • Full-year 2018 revenue is projected to land between $780 million and $800 million. The middle of this range is in line with Wall Street's estimate.
  • Full-year 2018 EPS is expected to land between $1.90 and $2.05. The midpoint of this range is ahead of the $1.95 that market watchers were expecting.

Given the upbeat results, it isn't hard to figure out why shares are up by double digits today.

Now what

Omnicell's second-quarter results show that the business is scaling nicely as revenue continues to tick higher. That's a great development for investors and bodes well for profit growth from here as the company continues to ride the pharmacy automation wave.