Omnicell, Inc. OMCL reported first-quarter 2016 adjusted earnings per share (EPS) of 30 cents (considering stock-based compensation as a regular expense), reflecting year-over-year improvement of 57.9%. EPS was also 87.5% ahead of the Zacks Consensus Estimate of 16 cents.Per management, strong revenue growth drove the year-over-year improvement in the quarter’s adjusted EPS.Including one-time items, the company reported net loss of 1 cent per share, a huge slash from the year-ago earnings of 17 cents per share.Notably, Omnicell completed its acquisition of Aesynt Holding in Jan 2016 and its first-quarter results include the consolidated statement of operations of the combined company. Omnicell Inc. (OMCL) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany Revenues in DetailRevenues surged 47.1% year over year to $171 million, beating the Zacks Consensus Estimate of $167 million.According to management, the company witnessed strong demand in the first quarter on account of both expansion and upgrades by existing customers, as well as new and competitive conversion customers. Strength has been noted particularly in the combined product portfolio to enable strategic and tailored solutions for customers.On a segmental basis, during the quarter, Omnicell’s Automation and Analytics segment’s revenues increased 60.1% to $148.9 million. The year-over-year surge was driven by the acquisition of Aesynt. Meanwhile, revenues from the Medication Adherence segment improved 5.8% to $22.1 million.Omnicell witnessed strong momentum in bookings in the first quarter. With the acquisition of Aesynt, Omnicell has gained an additional 10% of the medication automation and analytics market. On a combined basis, new and competitive conversions accounted for approximately 34% of first-quarter bookings.Operational UpdateOmnicell's gross profit during the reported quarter improved 22.8% to $79.9 million. However, gross margin contracted 319 basis points (bps) to 46.8%.Adjusted operating expenses in the first quarter surged 47% to $78.1 million. Consequently, adjusted operating profit plunged 84.5% to $1.9 million, with adjusted operating margin contracting 810 bps to 1.1% in the quarter.Financial UpdateOmnicell exited the first quarter of 2016 with cash and cash equivalents of $53.5 million, compared with $82.2 million at the end of full-year 2015.Outlook Omnicell reiterated its earlier provided full-year 2016 guidance. The company expects to deliver adjusted EPS in the range of $1.50–$1.60 on revenues of $695–$715 million. The company also expects to generate product bookings in the range of $540–$560 million, during 2016.For the second quarter of 2016, management expects to deliver adjusted EPS in the 30–34 cents range on revenues of $168–$175 million.Our TakeOmnicell’s outperformance in first-quarter 2016, both on the EPS and revenue front is heartening. We are encouraged to note that with the recent completion of the acquisition of Aesynt, Omnicell has gained an additional 10% of the medication automation and analytics market. This quarter was strong in terms of bookings for the company’s legacy products. It was a robust quarter for the Aesynt products as well.Management expects this acquisition to widen Omnicell’s product portfolio for the point-of-care and centralized medication management equipment and solutions. It should also expand Omnicell’s presence in hospitals by adding world leading IV solutions, while also accelerating the development of enterprise software and real-time analytics.Omnicell’s first-quarter margin contractions are disappointing. Nevertheless, post the Aesynt takeover, management’s confidence in delivering significant revenue and earnings growth over the coming years, bolsters our confidence in the stock. Going forward, its recent Aesynt buyout is expected to be accretive to Omnicell’s adjusted earnings in 2016. We believe such strategic acquisitions will add value to the company’s growth profile significantly, apart from expanding its product portfolio and geographic presence.Zacks RankCurrently, Omnicell sports a Zacks Rank #1 (Strong Buy). Some other favorably ranked medical stocks are Computer Programs & Systems Inc. CPSI, Medidata Solutions, Inc. MDSO and Quality Systems Inc. QSII. All these stocks carry the same Zacks Rank as Omnicell.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OMNICELL INC (OMCL): Free Stock Analysis Report QUALITY SYS (QSII): Free Stock Analysis Report MEDIDATA SOLUTN (MDSO): Free Stock Analysis Report COMPUTER PRGRMS (CPSI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research