With 951 companies slated to report their quarterly figures this week, including 189 S&P 500 members, all eyes are now on the outcome of this year’s second-quarter reporting cycle. Notably a modest improvement has been observed in the performance of the 126 S&P 500 members that have reported their numbers so far (as of Jul 22), compared to the extremely weak levels that prevailed in the last couple of quarters. However, the overall earnings scenario still remains quite bleak with earnings from the total S&P 500 cohort expected to be down 3.4% on the back of 0.5% lower revenues.
Thus, analysts remain in a state of uncertainty in terms of how the entire second quarter will be, as to whether this trend of dreary performance will continue or a widespread improvement will be observed. However, despite the finality of second quarter still under doubt, Medical is one sector that has stood out amid all uncertainties surrounding this reporting cycle.
In fact, as per our Earnings Trend Report, Medical is one of the 7 broader sectors among the 16 Zacks sectors that are expected to report earnings growth. The sector is anticipated to deliver 1.8% earnings growth on the back of 7.7% higher revenues in the second quarter.
What’s in Store for Medical Information Stocks?
The widespread challenges like severe macroeconomic turmoil, fiercely competitive market, increasing cost related hazards arising from regulatory complexities along with reimbursement issues putting severe strain on pricing structure have been plaguing the Medical sector. Still the sector has been performing steadily on the back of its fundamentally strong foundation. Medical information, a growing subsector under this broader space, is no exception to this trend.
Factors like increasing predominance of data management software, widespread adoption of digital wearables like patient tracking device, need for extensive interoperability services among care givers have lately enhanced growth in the healthcare information systems market. Increased implementation of IT services in the healthcare sector is another underlying reason behind the expansion of this market, especially in the U.S. Consequently, companies in the Medical information space holds a lot of promise at this moment.
Let’s take a look at the major Medical Information stocks slated to release their quarterly reports on Jul 28:
Quality Systems Inc. : This company develops and markets electronic health records (EHR), practice management, revenue cycle management, and interoperability solutions as well as clinical workflow and operations consulting services for medical and dental group practices along with hospitals throughout the U.S. It carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 18 cents.
Last quarter, the company posted a positive earnings surprise of 12.50%. Encouragingly, Quality Systems’ earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 18.37%.
Omnicell, Inc. OMCL: This company is a global provider of automation and business analytics software solutions for medication and supply management in healthcare. It carries a Zacks Rank #1 and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 21 cents.
Last quarter, the company posted a positive earnings surprise of 87.50%. Moreover, Omnicell’s earnings outpaced the Zacks Consensus Estimate in two of the past four quarters, with an average beat of 20.92%.
Digirad Corporation : This company offers a wide range of mobile and on-site imaging solutions for health care systems and physicians. It carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 10 cents.
Last quarter, the company posted a positive earnings surprise of 133.33%. Moreover, Digirad's earnings exceeded the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 48.09%.
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Medical Information Earnings on Jul 28: DRAD, OMCL, QSII
With 951 companies slated to report their quarterly figures this week, including 189 S&P 500 members, all eyes are now on the outcome of this year’s second-quarter reporting cycle. Notably a modest improvement has been observed in the performance of the 126 S&P 500 members that have reported their numbers so far (as of Jul 22), compared to the extremely weak levels that prevailed in the last couple of quarters. However, the overall earnings scenario still remains quite bleak with earnings from the total S&P 500 cohort expected to be down 3.4% on the back of 0.5% lower revenues.
Thus, analysts remain in a state of uncertainty in terms of how the entire second quarter will be, as to whether this trend of dreary performance will continue or a widespread improvement will be observed. However, despite the finality of second quarter still under doubt, Medical is one sector that has stood out amid all uncertainties surrounding this reporting cycle.
In fact, as per our Earnings Trend Report, Medical is one of the 7 broader sectors among the 16 Zacks sectors that are expected to report earnings growth. The sector is anticipated to deliver 1.8% earnings growth on the back of 7.7% higher revenues in the second quarter.
What’s in Store for Medical Information Stocks?
The widespread challenges like severe macroeconomic turmoil, fiercely competitive market, increasing cost related hazards arising from regulatory complexities along with reimbursement issues putting severe strain on pricing structure have been plaguing the Medical sector. Still the sector has been performing steadily on the back of its fundamentally strong foundation. Medical information, a growing subsector under this broader space, is no exception to this trend.
Factors like increasing predominance of data management software, widespread adoption of digital wearables like patient tracking device, need for extensive interoperability services among care givers have lately enhanced growth in the healthcare information systems market. Increased implementation of IT services in the healthcare sector is another underlying reason behind the expansion of this market, especially in the U.S. Consequently, companies in the Medical information space holds a lot of promise at this moment.
Let’s take a look at the major Medical Information stocks slated to release their quarterly reports on Jul 28:
Quality Systems Inc. : This company develops and markets electronic health records (EHR), practice management, revenue cycle management, and interoperability solutions as well as clinical workflow and operations consulting services for medical and dental group practices along with hospitals throughout the U.S. It carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 18 cents.
Last quarter, the company posted a positive earnings surprise of 12.50%. Encouragingly, Quality Systems’ earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 18.37%.
QUALITY SYS Price and EPS Surprise
QUALITY SYS Price and EPS Surprise | QUALITY SYS Quote
Omnicell, Inc. OMCL: This company is a global provider of automation and business analytics software solutions for medication and supply management in healthcare. It carries a Zacks Rank #1 and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 21 cents.
Last quarter, the company posted a positive earnings surprise of 87.50%. Moreover, Omnicell’s earnings outpaced the Zacks Consensus Estimate in two of the past four quarters, with an average beat of 20.92%.
OMNICELL INC Price and EPS Surprise
OMNICELL INC Price and EPS Surprise | OMNICELL INC Quote
Digirad Corporation : This company offers a wide range of mobile and on-site imaging solutions for health care systems and physicians. It carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 10 cents.
Last quarter, the company posted a positive earnings surprise of 133.33%. Moreover, Digirad's earnings exceeded the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 48.09%.
DIGIRAD CORP Price and EPS Surprise
DIGIRAD CORP Price and EPS Surprise | DIGIRAD CORP Quote
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