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Medical Product Stocks' Earnings on Aug 5: XRAY, HMSY & More
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We are nearing the end of the second-quarter earnings season, with more than 1,000 companies, including 116 S&P 500 members, slated to report their financial numbers this week. As the numbers pour in, investors are waiting to see which sectors ultimately stand out, beating all odds. After analysing more than 60% of the reports that are out so far, it is only rational to say that a moderate improvement has been observed compared to the prior-quarter’s trend.
Although the second quarter is still heading into the negative territory which will make it the fifth straight quarter of earnings decline for the S&P 500 index, the modest improving trend has certainly buoyed investors’ spirits and encouraged them to put their money, in the top performing sectors. That said, it is worth mentioning that, as per the Earnings Preview Report, among the 16 broader Zacks sectors, the Medical sector has been a standout performer so far, exhibiting better-than-expected results.
Encouragingly, results from 71.9% of the Medical sector’s market cap in the S&P 500 index are already out (as of Jul 29), among which 87.9% exceeded EPS estimates while 81.8% surpassed revenue estimates. In fact, as per our report, the proportion of companies in the Medical sector beating revenue estimates is currently the highest within the S&P 500 index.
What’s in Store for Medical Product Stocks?
In spite of widespread challenges like severe macroeconomic fluctuation, fiercely competitive market, regulatory complexities putting severe strain on pricing structure; Medical sector has been weathering all this headwinds and performing steadily on the back of its fundamentally strong foundation. Medical Product, a niche area under the medical device subcategory within the broader Medical sector, holds a lot of potential at this moment.
Factors like rapid innovation of breakthrough products enabling physicians to offer seamless healthcare to patients and strong product cycle has always been a strong suit of this industry. Additionally, the recent transformation in consumer demand and market dynamics brought about a drastic change in the entire healthcare system. This is evident from the growing prevalence of minimally invasive surgeries, rising demand for liquid biopsy tests, increasing predominance of data management software, widespread adoption of digital wearables like patient tracking device as well as increased use of IT services for ensuring quick and improved patient care along with the shift of the payment system to a value-based model.
Here is a sneak peek into four medical products companies that are lined up to report earnings on Aug 5:
DENTSPLY Sirona Inc. (XRAY - Free Report) : This global manufacturer of professional dental products and technologies is scheduled to report its second-quarter 2016 earnings on Aug 5, before the opening bell. The recently closed merger between Sirona Dental and Dentsply International led to the formation of DENTSPLY Sirona, which is expected to gain from revenue and cost synergies arising out of the merger in 2016 and beyond. However, integration might be a concern in the near term.
Currently, DENTSPLY Sirona has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 70 cents. On average, the company delivered a positive earnings surprise of 5.41% for the trailing four quarters.
HMS Holdings Corp. : This company provides information-based outsourcing services to healthcare providers and payors, in the U.S. healthcare insurance benefit cost containment market. It is scheduled to report second-quarter 2016 financial numbers on Aug 5, before market open.
Currently, HMS Holdings 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 stand at 11 cents. Last quarter, the company delivered a positive earnings surprise of 10%. On average, the company delivered a negative earnings surprise of 1.56% for the last four quarters.
Roka Bioscience, Inc. : This is a molecular diagnostics company that develops highly accurate molecular assays and instrument systems for the Food Safety Industry. It carries a Zacks Rank #3 and is slated to release second-quarter 2016 financial numbers on Aug 5, before the opening bell. Roka has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 51 cents.
Last quarter, the company posted a negative earnings surprise of 2.17%. On average, the company delivered a negative earnings surprise of 5.25% through the last four quarters.
TransEnterix, Inc. : TransEnterix is a medical device company that is pioneering the use of robotics to improve minimally invasive surgery by addressing the clinical and economic challenges associated with current laparoscopic and robotic options. It carries a Zacks Rank #4 (Sell) and is slated to release second-quarter 2016 financial numbers on Aug 5, before the opening bell. TransEnterix has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 13 cents.
Last quarter, the company posted a positive earnings surprise of 7.69%. On average, the company delivered a negative earnings surprise of 0.16% for the last four quarters.
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Medical Product Stocks' Earnings on Aug 5: XRAY, HMSY & More
We are nearing the end of the second-quarter earnings season, with more than 1,000 companies, including 116 S&P 500 members, slated to report their financial numbers this week. As the numbers pour in, investors are waiting to see which sectors ultimately stand out, beating all odds. After analysing more than 60% of the reports that are out so far, it is only rational to say that a moderate improvement has been observed compared to the prior-quarter’s trend.
Although the second quarter is still heading into the negative territory which will make it the fifth straight quarter of earnings decline for the S&P 500 index, the modest improving trend has certainly buoyed investors’ spirits and encouraged them to put their money, in the top performing sectors. That said, it is worth mentioning that, as per the Earnings Preview Report, among the 16 broader Zacks sectors, the Medical sector has been a standout performer so far, exhibiting better-than-expected results.
Encouragingly, results from 71.9% of the Medical sector’s market cap in the S&P 500 index are already out (as of Jul 29), among which 87.9% exceeded EPS estimates while 81.8% surpassed revenue estimates. In fact, as per our report, the proportion of companies in the Medical sector beating revenue estimates is currently the highest within the S&P 500 index.
What’s in Store for Medical Product Stocks?
In spite of widespread challenges like severe macroeconomic fluctuation, fiercely competitive market, regulatory complexities putting severe strain on pricing structure; Medical sector has been weathering all this headwinds and performing steadily on the back of its fundamentally strong foundation. Medical Product, a niche area under the medical device subcategory within the broader Medical sector, holds a lot of potential at this moment.
Factors like rapid innovation of breakthrough products enabling physicians to offer seamless healthcare to patients and strong product cycle has always been a strong suit of this industry. Additionally, the recent transformation in consumer demand and market dynamics brought about a drastic change in the entire healthcare system. This is evident from the growing prevalence of minimally invasive surgeries, rising demand for liquid biopsy tests, increasing predominance of data management software, widespread adoption of digital wearables like patient tracking device as well as increased use of IT services for ensuring quick and improved patient care along with the shift of the payment system to a value-based model.
Here is a sneak peek into four medical products companies that are lined up to report earnings on Aug 5:
DENTSPLY Sirona Inc. (XRAY - Free Report) : This global manufacturer of professional dental products and technologies is scheduled to report its second-quarter 2016 earnings on Aug 5, before the opening bell. The recently closed merger between Sirona Dental and Dentsply International led to the formation of DENTSPLY Sirona, which is expected to gain from revenue and cost synergies arising out of the merger in 2016 and beyond. However, integration might be a concern in the near term.
Currently, DENTSPLY Sirona has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 70 cents. On average, the company delivered a positive earnings surprise of 5.41% for the trailing four quarters.
(Read More: Can DENTSPLY Spring an Earnings Surprise in Q2?)
DENTSPLY SIRONA Price and EPS Surprise
DENTSPLY SIRONA Price and EPS Surprise | DENTSPLY SIRONA Quote
HMS Holdings Corp. : This company provides information-based outsourcing services to healthcare providers and payors, in the U.S. healthcare insurance benefit cost containment market. It is scheduled to report second-quarter 2016 financial numbers on Aug 5, before market open.
Currently, HMS Holdings 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 stand at 11 cents. Last quarter, the company delivered a positive earnings surprise of 10%. On average, the company delivered a negative earnings surprise of 1.56% for the last four quarters.
HMS HLDGS CP Price and EPS Surprise
HMS HLDGS CP Price and EPS Surprise | HMS HLDGS CP Quote
Roka Bioscience, Inc. : This is a molecular diagnostics company that develops highly accurate molecular assays and instrument systems for the Food Safety Industry. It carries a Zacks Rank #3 and is slated to release second-quarter 2016 financial numbers on Aug 5, before the opening bell. Roka has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 51 cents.
Last quarter, the company posted a negative earnings surprise of 2.17%. On average, the company delivered a negative earnings surprise of 5.25% through the last four quarters.
ROKA BIOSC INC Price and EPS Surprise
ROKA BIOSC INC Price and EPS Surprise | ROKA BIOSC INC Quote
TransEnterix, Inc. : TransEnterix is a medical device company that is pioneering the use of robotics to improve minimally invasive surgery by addressing the clinical and economic challenges associated with current laparoscopic and robotic options. It carries a Zacks Rank #4 (Sell) and is slated to release second-quarter 2016 financial numbers on Aug 5, before the opening bell. TransEnterix has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 13 cents.
Last quarter, the company posted a positive earnings surprise of 7.69%. On average, the company delivered a negative earnings surprise of 0.16% for the last four quarters.
TRANSENTERX INC Price and EPS Surprise
TRANSENTERX INC Price and EPS Surprise | TRANSENTERX INC Quote
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