The moderately fair bank results have given an encouraging start to the second-quarter 2016 earnings season. However, growth trends are still dreary, particularly due to weaknesses in the energy and technology sectors.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 5.4% from the year-ago quarter on revenues that are estimated to decline 0.5%.
Total earnings for the energy sector are expected to be down 77.1% on lower revenues (down 25.7%). Excluding the energy sector, earnings for the rest of the index are estimated to be down 2.1%.
The current week (Jul 18-22) will see releases from more than 299 companies, out of which 92 companies are S&P 500 members. Notably, Medical companies will start reporting this week. Medical is one of the seven sectors in the S&P 500 that are expected to report earnings growth in the second quarter.
Here are three medical product companies lined up to report earnings on Jul 20.
Before market open, St. Jude Medical Inc is scheduled to report its quarterly numbers. Strong momentum at Heart Failure (HF), Neuromodulation and Atrial Fibrillation (AF) businesses are key growth drivers.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 (Buy) and an Earnings ESP of -1.89%.
That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
(Read more: St. Jude Medical Q2 Earnings: What's in the Cards?)
Medidata Solutions Inc. offer cloud-based solutions for clinical research organizations. We believe a growing clientele driven by rapid adoption of products is the primary catalyst. The Intelemage acquisition also expands the company’s total addressable market.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.
We also note that Medidata's results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 35.61%.
Natus Medical Inc. is a provider of newborn care and neurology healthcare products. We believe increasing demand for Peloton (newborn hearing screening tests), NicView (provides streaming video for families and babies in the neonatal intensive care unit (NICU) 24/7), and Global Neurodiagnostic (GND) services will drive top-line growth.
Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 and an Earnings ESP of 0.00%.
Notably, Natus Medical results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 8.27%.
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Medical Product Earnings on Jul 20: STJ, MDSO, BABY
The moderately fair bank results have given an encouraging start to the second-quarter 2016 earnings season. However, growth trends are still dreary, particularly due to weaknesses in the energy and technology sectors.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 5.4% from the year-ago quarter on revenues that are estimated to decline 0.5%.
Total earnings for the energy sector are expected to be down 77.1% on lower revenues (down 25.7%). Excluding the energy sector, earnings for the rest of the index are estimated to be down 2.1%.
The current week (Jul 18-22) will see releases from more than 299 companies, out of which 92 companies are S&P 500 members. Notably, Medical companies will start reporting this week. Medical is one of the seven sectors in the S&P 500 that are expected to report earnings growth in the second quarter.
Here are three medical product companies lined up to report earnings on Jul 20.
Before market open, St. Jude Medical Inc is scheduled to report its quarterly numbers. Strong momentum at Heart Failure (HF), Neuromodulation and Atrial Fibrillation (AF) businesses are key growth drivers.
ST JUDE MEDICAL Price and EPS Surprise
ST JUDE MEDICAL Price and EPS Surprise | ST JUDE MEDICAL Quote
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 (Buy) and an Earnings ESP of -1.89%.
That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
(Read more: St. Jude Medical Q2 Earnings: What's in the Cards?)
Medidata Solutions Inc. offer cloud-based solutions for clinical research organizations. We believe a growing clientele driven by rapid adoption of products is the primary catalyst. The Intelemage acquisition also expands the company’s total addressable market.
MEDIDATA SOLUTN Price and EPS Surprise
MEDIDATA SOLUTN Price and EPS Surprise | MEDIDATA SOLUTN Quote
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.
We also note that Medidata's results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 35.61%.
Natus Medical Inc. is a provider of newborn care and neurology healthcare products. We believe increasing demand for Peloton (newborn hearing screening tests), NicView (provides streaming video for families and babies in the neonatal intensive care unit (NICU) 24/7), and Global Neurodiagnostic (GND) services will drive top-line growth.
NATUS MEDICAL Price and EPS Surprise
NATUS MEDICAL Price and EPS Surprise | NATUS MEDICAL Quote
Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 and an Earnings ESP of 0.00%.
Notably, Natus Medical results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 8.27%.
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 >>