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Look at Aug 2 Medical Instrument Earnings: IDXX, DXCM, CGNT
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As we get into the thick of the Q2 earning season, we observe that the magnitude of the earnings decline, which we had expected at the beginning of the reporting cycle, is slowly changing for better though only slightly. With more than 60% of the reports already out, we are optimistic of this improving trend to continue through the season. Nevertheless, growth is still unlikely and the analysts are, by now, quite certain this will be the fifth straight quarter of an earnings decline for the S&P 500 index.
As per our latest Earnings Preview report, around 317 S&P 500 members (73.5% of the index’s total market capitalization) have released their results, and the scorecard shows 3.3% year-over-year decline in the index’ Q2 earnings on 0.9% lower revenues. Medical, one of the 16 broader Zacks sectors, has however exhibited a promising performance so far. Earnings growth rate stood at 5.4% year over year on account of a 1.2% rise in revenues. For the remaining the season, earnings are expected to grow 3.4%, driven by impressive top-line growth expectation of 7.7% in this sector.
What’s in Store for the Med-Instrument Space?
Medical Instrument, a specialized sub-sector within the broader Medical sector, is showing a lot of potential as of now. This is impressive given the severe economic instability, fierce competition, and increasing cost related hazards leading to regulatory complexities. The success of the medical instrument industry comes on the back of successful execution of some top strategic priorities, which include R&D and product development; strategic M&A and alliances and a focus on emerging market expansion.
Needless to say that factors like the recent exemption of the Medical Device Excise tax for the next two years has also come in as a much-needed breather for these Medical instrument stocks. We believe this exemption, albeit temporary, has boosted the positive sentiment in the medical device investment world, as most analysts believe it to be sufficient for companies to address pressing issues such as a lack of opportunity for R&D, innovation, pipeline development, and to make investments needed to accelerate patient and provider access to innovative health care products.
Let’s take a look at the Medical Instruments stocks slated to release their quarterly reports on Aug 2:
Headquartered in Delaware NJ, IDEXX is a developer, manufacturer and distributer of products and services primarily for the companion animal veterinary, livestock and poultry along with water testing and dairy markets. IDEXX’s robust worldwide commercial capabilities and best-in-class products, which include the next-generation chemistry analyzer – Catalyst One, are the key growth drivers over the near term.
IDEXX is scheduled to report second-quarter 2016 numbers on Aug 2. The company currently carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP of 1.61%. That is because both the Most Accurate estimate stands higher at 63 cents per share as compared to the Zacks Consensus Estimate which remains at 62 cents. We note that while a favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise, a bullish Zacks rank #1 (Strong Buy), 2 (Buy) or #3 (Hold) increases the predictive power of the ESP. We also observe that IDEXX’ trailing 12-month earnings surprise is 6.33%.
San Diego, CA-based DexCom is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems (CGM). The large and growing diabetes market, strong product portfolio, innovative product pipeline, collaborative agreements with several companies and focus on international markets are key catalysts for Dexcom.
Dexcom is scheduled to report second-quarter 2016 numbers on Aug 2. However, our proven model does not conclusively show that Dexcom is likely to beat earnings this quarter. This is because Dexcom currently carries a Zacks Rank #3 (Hold) and has a negative Earnings ESP of 36.36%. That is because both the Most Accurate Estimate remains at loss of 15 cents which the Zacks Consensus Estimate remains higher at a loss of 11 cents per share. We also note that Dexcom’s trailing 12-month earnings surprise is a negative 223.74%.
This medical device provider catering to urology market and flexible endoscopy is scheduled to report second-quarter 2016 earnings on Aug 2. While a favorable Zacks Rank #3 (Hold) increases the predictive power of the ESP, a 0.00% ESP makes a surprise prediction difficult. We also note in the last reported quarter, the company registered an earnings miss of 33.33%. However, the trailing 12-month average surprise came in at a positive 24.17%.
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Look at Aug 2 Medical Instrument Earnings: IDXX, DXCM, CGNT
As we get into the thick of the Q2 earning season, we observe that the magnitude of the earnings decline, which we had expected at the beginning of the reporting cycle, is slowly changing for better though only slightly. With more than 60% of the reports already out, we are optimistic of this improving trend to continue through the season. Nevertheless, growth is still unlikely and the analysts are, by now, quite certain this will be the fifth straight quarter of an earnings decline for the S&P 500 index.
As per our latest Earnings Preview report, around 317 S&P 500 members (73.5% of the index’s total market capitalization) have released their results, and the scorecard shows 3.3% year-over-year decline in the index’ Q2 earnings on 0.9% lower revenues. Medical, one of the 16 broader Zacks sectors, has however exhibited a promising performance so far. Earnings growth rate stood at 5.4% year over year on account of a 1.2% rise in revenues. For the remaining the season, earnings are expected to grow 3.4%, driven by impressive top-line growth expectation of 7.7% in this sector.
What’s in Store for the Med-Instrument Space?
Medical Instrument, a specialized sub-sector within the broader Medical sector, is showing a lot of potential as of now. This is impressive given the severe economic instability, fierce competition, and increasing cost related hazards leading to regulatory complexities. The success of the medical instrument industry comes on the back of successful execution of some top strategic priorities, which include R&D and product development; strategic M&A and alliances and a focus on emerging market expansion.
Needless to say that factors like the recent exemption of the Medical Device Excise tax for the next two years has also come in as a much-needed breather for these Medical instrument stocks. We believe this exemption, albeit temporary, has boosted the positive sentiment in the medical device investment world, as most analysts believe it to be sufficient for companies to address pressing issues such as a lack of opportunity for R&D, innovation, pipeline development, and to make investments needed to accelerate patient and provider access to innovative health care products.
Let’s take a look at the Medical Instruments stocks slated to release their quarterly reports on Aug 2:
IDEXX Laboratories, Inc. (IDXX - Free Report)
Headquartered in Delaware NJ, IDEXX is a developer, manufacturer and distributer of products and services primarily for the companion animal veterinary, livestock and poultry along with water testing and dairy markets. IDEXX’s robust worldwide commercial capabilities and best-in-class products, which include the next-generation chemistry analyzer – Catalyst One, are the key growth drivers over the near term.
IDEXX is scheduled to report second-quarter 2016 numbers on Aug 2. The company currently carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP of 1.61%. That is because both the Most Accurate estimate stands higher at 63 cents per share as compared to the Zacks Consensus Estimate which remains at 62 cents. We note that while a favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise, a bullish Zacks rank #1 (Strong Buy), 2 (Buy) or #3 (Hold) increases the predictive power of the ESP. We also observe that IDEXX’ trailing 12-month earnings surprise is 6.33%.
IDEXX LABS INC Price and EPS Surprise
IDEXX LABS INC Price and EPS Surprise | IDEXX LABS INC Quote
DexCom, Inc. (DXCM - Free Report)
San Diego, CA-based DexCom is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems (CGM). The large and growing diabetes market, strong product portfolio, innovative product pipeline, collaborative agreements with several companies and focus on international markets are key catalysts for Dexcom.
Dexcom is scheduled to report second-quarter 2016 numbers on Aug 2. However, our proven model does not conclusively show that Dexcom is likely to beat earnings this quarter. This is because Dexcom currently carries a Zacks Rank #3 (Hold) and has a negative Earnings ESP of 36.36%. That is because both the Most Accurate Estimate remains at loss of 15 cents which the Zacks Consensus Estimate remains higher at a loss of 11 cents per share. We also note that Dexcom’s trailing 12-month earnings surprise is a negative 223.74%.
DEXCOM INC Price and EPS Surprise
DEXCOM INC Price and EPS Surprise | DEXCOM INC Quote
Cogentix Medical, Inc. (CGNT - Free Report)
This medical device provider catering to urology market and flexible endoscopy is scheduled to report second-quarter 2016 earnings on Aug 2. While a favorable Zacks Rank #3 (Hold) increases the predictive power of the ESP, a 0.00% ESP makes a surprise prediction difficult. We also note in the last reported quarter, the company registered an earnings miss of 33.33%. However, the trailing 12-month average surprise came in at a positive 24.17%.
COGENTIX MEDICL Price and EPS Surprise
COGENTIX MEDICL Price and EPS Surprise | COGENTIX MEDICL Quote
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