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Peek Into Aug 1 Healthcare Stocks' Q2 Earnings: ADUS, THC
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Medical is one of the seven sectors in the S&P 500 cohort that is expected to record growth in earnings in the second quarter. The sector is likely to post earnings growth of 2.3% on revenue improvement of 7.7%.
We note that 278 S&P companies have already reported their quarterly numbers, with 75.2% of them beating the EPS estimates and 54.3% surpassing the top-line estimate.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 3.4% year over year on revenue decline of 0.4%.
Healthcare is an important component of the Medical sector and is expected follow the earnings growth trajectory in the quarter.
Here, we take a sneak peek at two healthcare stocks scheduled to report their second-quarter figures on Aug 1:
Addus HomeCare Corporation (ADUS - Free Report) is a provider of a broad range of home and community based social and medical services to older adults and younger disabled persons in the U.S.
The expanded partnership of Addus HomeCare with Cell-Trak to strengthen mobile technology for the care-givers is a significant positive in our view. Additionally, the acquisition of South Shore has paved way for the company’s foray into the New York market, which is also a noteworthy development.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 (Hold) and Earnings ESP of 0.00%.
That is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. 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.
Headquartered in Dallas, TX, Tenet Healthcare Corporation (THC - Free Report) is a healthcare services company, which owns and operates general hospitals and related healthcare facilities for urban and rural communities.
Tenet Healthcare has been gaining strong market traction from the acquisitions in the recent past, addition of outpatient facilities, product launches and solid capital structure. Moreover, Tenet Healthcare continues to divest the less profitable hospitals to improve its service offerings.
Notably, Tenet Healthcare sold St. Louis University Hospital to SSM Health, five of its hospitals to WellStar Health System along with two hospitals and 19 physician groups in North Carolina to Duke LifePoint, to focus exclusively on its core business.
Nevertheless, our proven model does not show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of -2.04%
We note that Tenet Health’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 23.04%.
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Peek Into Aug 1 Healthcare Stocks' Q2 Earnings: ADUS, THC
Medical is one of the seven sectors in the S&P 500 cohort that is expected to record growth in earnings in the second quarter. The sector is likely to post earnings growth of 2.3% on revenue improvement of 7.7%.
We note that 278 S&P companies have already reported their quarterly numbers, with 75.2% of them beating the EPS estimates and 54.3% surpassing the top-line estimate.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 3.4% year over year on revenue decline of 0.4%.
Healthcare is an important component of the Medical sector and is expected follow the earnings growth trajectory in the quarter.
Here, we take a sneak peek at two healthcare stocks scheduled to report their second-quarter figures on Aug 1:
Addus HomeCare Corporation (ADUS - Free Report) is a provider of a broad range of home and community based social and medical services to older adults and younger disabled persons in the U.S.
ADDUS HOMECARE Price and EPS Surprise
ADDUS HOMECARE Price and EPS Surprise | ADDUS HOMECARE Quote
The expanded partnership of Addus HomeCare with Cell-Trak to strengthen mobile technology for the care-givers is a significant positive in our view. Additionally, the acquisition of South Shore has paved way for the company’s foray into the New York market, which is also a noteworthy development.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 (Hold) and Earnings ESP of 0.00%.
That is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. 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.
Headquartered in Dallas, TX, Tenet Healthcare Corporation (THC - Free Report) is a healthcare services company, which owns and operates general hospitals and related healthcare facilities for urban and rural communities.
TENET HEALTH Price and EPS Surprise
TENET HEALTH Price and EPS Surprise | TENET HEALTH Quote
Tenet Healthcare has been gaining strong market traction from the acquisitions in the recent past, addition of outpatient facilities, product launches and solid capital structure. Moreover, Tenet Healthcare continues to divest the less profitable hospitals to improve its service offerings.
Notably, Tenet Healthcare sold St. Louis University Hospital to SSM Health, five of its hospitals to WellStar Health System along with two hospitals and 19 physician groups in North Carolina to Duke LifePoint, to focus exclusively on its core business.
Nevertheless, our proven model does not show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of -2.04%
We note that Tenet Health’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 23.04%.
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 >>