Omnicell, Inc. (NASDAQ:OMCL) shares closed more than 5% lower today following the company’s reported Q4 results, with quarterly EPS of $0.92 coming in 3.2% lower than the consensus estimate. Revenue of $311.7 million was in line with the Street estimates.

The company expects Q1/22 EPS in the range of $0.65-$0.72, compared to the consensus estimate of $0.86. Q1 revenue is expected to range from $312 million to 318 million, compared to the consensus estimate of $301.38 million.

According to the analysts at Berenberg Bank, inflationary pressures look more concerning in the near term than previously anticipated, but strong product bookings and backlog support their long-term revenue outlook.

The analysts expect raw material inflation to weigh on profitability longer than initially anticipated and believe conservatively that reaching the 25% adjusted EBITDA margin – previously expected by 2025 – may be delayed a year.

The analysts remain confident that the company can deliver a 15%+ revenue CAGR through 2025, but believe pricing adjustments will now only partially offset raw material inflation, putting pressure on near-term margins.