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. 

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.