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Dental Stocks to Watch for Earnings on Aug 2: ABC, CAH
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With more than 60% of the reports already out for the Q2 earnings season, the overall picture does not seem to be as dreary as the analysts expected when the reporting cycle commenced. Although the quarter is still on track to be the fifth straight quarter of an earnings decline, we observe a modest improvement in Q2 compared to the preceding quarter.
Notably, of the 317 S&P 500 members (accounting for 73.5% of the index’s total market capitalization) which have released results so far (as of Jul 29), 72.9% managed to beat EPS estimates and 53.6% came ahead of top-line expectations. This evidently displays the slight improvement that has been witnessed. That said, it is worth mentioning that Medical has stood out as one of the two top-performing sectors, results from which have been particularly better than expected this earnings season.
In fact, as per our recent Earnings Preview report, the proportion of companies in the Medical sector beating revenue estimates is currently the highest within the S&P 500 index. With results from 71.9% of the Medical sector’s market cap in the S&P 500 index already out, total earnings are up 5.4% on the back of 10.5% higher revenues, with 87.9% beating EPS estimates and 81.8% beating revenue estimates.
What’s in Store for Dental Stocks?
Over the last decade, the aggressive reimbursement policy adopted by the government and insurers has made it difficult for medical companies to market their products due to increased scrutiny and prevented them from recognizing high revenues owing to an increased coverage by public payers. A notable exception to this trend has been stocks concerning dentistry, since consumers pay a higher percentage of costs out of pocket in this particular industry. In fact, the dental business is largely driven by consumer spending.
Apart from this, a high level of traction of 3D printing has been observed lately due to advancements in technology in the overall medical sector, particularly in the dental industry. One of the most significant attributes that 3D printing brings to the dental industry is the capacity to provide customized dental products in a way that wasn’t possible before. Moreover, consistent innovation as well as rapid improvement in the flagship CAD/CAM (computer-aided design and computer-aided manufacturing) system has been a strong suit of this industry. Without a doubt, dental industry – a growing sub-sector under the broader Medical sector -- with the aforementioned trends, holds a lot of potential at this moment.
Let’s take a look at the major dental stocks slated to release their quarterly reports on Aug 2:
AmerisourceBergen Corporation : This renowned pharmaceutical distributor is scheduled to report third-quarter fiscal 2016 earnings on Aug 2, before the opening bell. Factors like contract renewals and lower generic inflation have been consistently plaguing this company’s pharmaceutical distribution segment. Expecting such headwinds to continue in the days ahead, the company lowered its fiscal 2016 earnings guidance to the range of $5.44–$5.54 from its previous projection of $5.73–$5.83.
Currently, AmerisourceBergen holds a Zacks Rank #2 (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 $1.26.
Cardinal Health, Inc. (CAH - Free Report) : This healthcare services provider is scheduled to report its fourth-quarter fiscal 2016 earnings on Aug 2, before the opening bell. Generic pricing pressure remains a matter of concern for Cardinal Health. Consequently, management expects generic sales to remain sluggish in the near term. On a brighter note, synergies from the acquisitions of Metro Medical, The Harvard Drug Group and Cordis remain key catalysts for this corporation’s growth, going forward.
Currently, Cardinal Health holds a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.77%. That is because the Most Accurate estimate is pegged at $1.11, while the Zacks Consensus Estimate is pegged higher at $1.13.
Stay tuned! Check back later for our earnings coverage of these stocks.
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Dental Stocks to Watch for Earnings on Aug 2: ABC, CAH
With more than 60% of the reports already out for the Q2 earnings season, the overall picture does not seem to be as dreary as the analysts expected when the reporting cycle commenced. Although the quarter is still on track to be the fifth straight quarter of an earnings decline, we observe a modest improvement in Q2 compared to the preceding quarter.
Notably, of the 317 S&P 500 members (accounting for 73.5% of the index’s total market capitalization) which have released results so far (as of Jul 29), 72.9% managed to beat EPS estimates and 53.6% came ahead of top-line expectations. This evidently displays the slight improvement that has been witnessed. That said, it is worth mentioning that Medical has stood out as one of the two top-performing sectors, results from which have been particularly better than expected this earnings season.
In fact, as per our recent Earnings Preview report, the proportion of companies in the Medical sector beating revenue estimates is currently the highest within the S&P 500 index. With results from 71.9% of the Medical sector’s market cap in the S&P 500 index already out, total earnings are up 5.4% on the back of 10.5% higher revenues, with 87.9% beating EPS estimates and 81.8% beating revenue estimates.
What’s in Store for Dental Stocks?
Over the last decade, the aggressive reimbursement policy adopted by the government and insurers has made it difficult for medical companies to market their products due to increased scrutiny and prevented them from recognizing high revenues owing to an increased coverage by public payers. A notable exception to this trend has been stocks concerning dentistry, since consumers pay a higher percentage of costs out of pocket in this particular industry. In fact, the dental business is largely driven by consumer spending.
Apart from this, a high level of traction of 3D printing has been observed lately due to advancements in technology in the overall medical sector, particularly in the dental industry. One of the most significant attributes that 3D printing brings to the dental industry is the capacity to provide customized dental products in a way that wasn’t possible before. Moreover, consistent innovation as well as rapid improvement in the flagship CAD/CAM (computer-aided design and computer-aided manufacturing) system has been a strong suit of this industry. Without a doubt, dental industry – a growing sub-sector under the broader Medical sector -- with the aforementioned trends, holds a lot of potential at this moment.
Let’s take a look at the major dental stocks slated to release their quarterly reports on Aug 2:
AmerisourceBergen Corporation : This renowned pharmaceutical distributor is scheduled to report third-quarter fiscal 2016 earnings on Aug 2, before the opening bell. Factors like contract renewals and lower generic inflation have been consistently plaguing this company’s pharmaceutical distribution segment. Expecting such headwinds to continue in the days ahead, the company lowered its fiscal 2016 earnings guidance to the range of $5.44–$5.54 from its previous projection of $5.73–$5.83.
Currently, AmerisourceBergen holds a Zacks Rank #2 (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 $1.26.
(Read More: AmerisourceBergen Q3 Earnings: Stock to Surprise?)
AMERISOURCEBRGN Price and EPS Surprise
AMERISOURCEBRGN Price and EPS Surprise | AMERISOURCEBRGN Quote
Cardinal Health, Inc. (CAH - Free Report) : This healthcare services provider is scheduled to report its fourth-quarter fiscal 2016 earnings on Aug 2, before the opening bell. Generic pricing pressure remains a matter of concern for Cardinal Health. Consequently, management expects generic sales to remain sluggish in the near term. On a brighter note, synergies from the acquisitions of Metro Medical, The Harvard Drug Group and Cordis remain key catalysts for this corporation’s growth, going forward.
Currently, Cardinal Health holds a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.77%. That is because the Most Accurate estimate is pegged at $1.11, while the Zacks Consensus Estimate is pegged higher at $1.13.
(Read More: Cardinal Health (CAH - Free Report) Q4 Earnings: Disappointment in Store?)
CARDINAL HEALTH Price and EPS Surprise
CARDINAL HEALTH Price and EPS Surprise | CARDINAL HEALTH Quote
Stay tuned! Check back later for our earnings coverage of these stocks.
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 >>