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VWR Corp Poised on Strong Earnings Amid Currency Headwinds
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On Feb 28, we issued an updated research report on VWR Corporation , an independent worldwide provider of products, services and solutions to laboratory and production facilities.
In the last three months, VWR consistently traded below the broader Medical - Dental Supplies industry, until it has reported a mixed fourth-quarter performance. The trend has gradually started to rebound with the company reporting earnings ahead of the Zacks Consensus Estimate. Despite foreign exchange headwinds, the company’s international performance was strong in the fourth quarter led by higher sales to industrial and healthcare customers. Per the last share price movement, overall the stock gained 11.52%, surpassing the 9.92% gain of the broader industry over this period.
From a product perspective, in the quarter, sales of chemicals grew in low-single digits while sales of consumables grew in mid-single-digits. Going forward, management expects its EMEA-APAC segment to continue its historically strong progress.
This apart, reported revenues in the Americas were up 2.5% year over year. Per management, the company demonstrated decent growth in chemicals and services. Healthcare sales increased in mid-single-digits with solid growth in chemicals and instruments and strong sales to hospitals.
On the flip side, fourth-quarter revenue performance was disappointing with the top line missing our estimates. While the primary reason for negative organic revenue growth in Americas was a difficult year-over-year comparison, the company also witnessed a low single-digit decline in biopharma and relatively weaker performance in equipment and instrumentation.
The EMEA-APAC segment’s stellar performance was offset by the strengthening of the U.S. dollar. A dull 2017 outlook is all the more disappointing as it indicates slim chances of recovery ahead. In addition, margin pressure and a competitive landscape act as major concerns.
Glaukos gained over 100% in the last one year compared with the S&P 500’s gain of 20.2%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year compared with the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 27.9% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared with the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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VWR Corp Poised on Strong Earnings Amid Currency Headwinds
On Feb 28, we issued an updated research report on VWR Corporation , an independent worldwide provider of products, services and solutions to laboratory and production facilities.
In the last three months, VWR consistently traded below the broader Medical - Dental Supplies industry, until it has reported a mixed fourth-quarter performance. The trend has gradually started to rebound with the company reporting earnings ahead of the Zacks Consensus Estimate. Despite foreign exchange headwinds, the company’s international performance was strong in the fourth quarter led by higher sales to industrial and healthcare customers. Per the last share price movement, overall the stock gained 11.52%, surpassing the 9.92% gain of the broader industry over this period.
From a product perspective, in the quarter, sales of chemicals grew in low-single digits while sales of consumables grew in mid-single-digits. Going forward, management expects its EMEA-APAC segment to continue its historically strong progress.
This apart, reported revenues in the Americas were up 2.5% year over year. Per management, the company demonstrated decent growth in chemicals and services. Healthcare sales increased in mid-single-digits with solid growth in chemicals and instruments and strong sales to hospitals.
On the flip side, fourth-quarter revenue performance was disappointing with the top line missing our estimates. While the primary reason for negative organic revenue growth in Americas was a difficult year-over-year comparison, the company also witnessed a low single-digit decline in biopharma and relatively weaker performance in equipment and instrumentation.
The EMEA-APAC segment’s stellar performance was offset by the strengthening of the U.S. dollar. A dull 2017 outlook is all the more disappointing as it indicates slim chances of recovery ahead. In addition, margin pressure and a competitive landscape act as major concerns.
Currently, VWR carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some better-ranked stocks in the medical product sector include Glaukos Corporation (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Glaukos gained over 100% in the last one year compared with the S&P 500’s gain of 20.2%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year compared with the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 27.9% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared with the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>