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The Zacks Analyst Blog Highlights Nevro, Masimo, Abiomed and Glaukos

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For Immediate Release

Chicago, IL – October 28, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nevro (NVRO - Free Report) , Masimo (MASI - Free Report) , Abiomed and Glaukos (GKOS - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

4 MedTech Stocks Set to Outpace Q3 Earnings Estimates

The third-quarter 2022 reporting cycle of the Medical sector has just started. The sector primarily comprises pharma/biotech and medical device companies.

The Earnings Trends report indicates that as of Oct 26, 23.2% of the companies in the Medical sector — representing 43% of the sector's market capitalization — reported quarterly earnings. While 92% of participants beat on revenues, 84.6% outperformed on earnings. While revenues increased 7.5% year over year, earnings declined 1.8%. Overall, third-quarter earnings of the Medical sector are expected to fall 8.3%, while sales are expected to rise 3.8%.

Throughout the third quarter, most players in the industry reeled under a greater-than-anticipated surge in inflationary pressure across the world. Mounting raw material costs, labor-supply constraints and supply-chain disruptions hampered the entire production and distribution process. Despite the challenging situation, the consistent opening up of economies, with countries lifting COVID-19 restrictions, might have favored the growth process in Q3.

Zeroing in on Winners

Here we have highlighted four MedTech companies — Nevro, Masimo, Abiomed and Glaukos — that are expected to deliver a beat in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The selection can be made with the help of the Zacks Stock Screener.

Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Nevro

An uptick in total U.S. permanent implant procedures and trial procedures, and a sequential improvement in PDN trial procedures are likely to have supported Nevro's top line. Nevro has an Earnings ESP of +10.91% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter loss stands at 71 cents per share.

Nevro beat earnings estimates in two of the last four quarters while beating the mark on one occasion and meeting the same once. NVRO has a trailing four-quarter earnings surprise of 5.73%, on average. Nevro is scheduled to release its third-quarter 2022 results on Nov 2, after market close.

Masimo

Robust order shipments and expansion of its installed base are likely to have boosted Masimo's top line during the third quarter. Moreover, the addition of Sound United is likely to have brought additional revenues. Masimo has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter earnings stands at 92 cents per share.

Masimo beat estimates in each of the last four quarters, delivering an average earnings surprise of 6.96%. MASI is scheduled to release its third-quarter 2022 results on Nov 8, after market close.

Abiomed

Favorable market trends for coronary heart diseases, recent regulatory approvals and robust demand for Abiomed's products are likely to have been key drivers of its revenues in the soon-to-be-reported quarter. Abiomed has an Earnings ESP of +4.18% and a Zacks Rank #3. The Zacks Consensus Estimate for Abiomed's third-quarter earnings is pegged at $1.04 per share.

Abiomed beat estimates in each of the last four quarters, delivering an earnings surprise of 10.89%. Abiomed is set to report earnings on Nov 1, before the opening bell.

Glaukos

Solid execution across Glaukos' global glaucoma and Corneal Health franchises are likely to have helped offset pandemic-induced volatility and global headwinds. Glaukos has an Earnings ESP of +4.03% and a Zacks Rank of 3. The Zacks Consensus Estimate for the third quarter is pegged at a loss of 53 cents per share. Glaukos is scheduled to release results on Nov 2, after market close.

GKOS beat estimates in three of the last four quarters and missed the same once, with the average negative surprise being 7.03%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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