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EW, VAR Earnings Due on Oct 23: Here Are Key Predictions
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The year 2018 has so far been remarkably rewarding for the global medical instruments space in terms of research and development (R&D). Starting from inventions like an artificial pancreas, human-brain pacemaker, electronic skin that displays vital signs of the body, needle-free injections to many more such wonders, the medical instruments fraternity has been in the limelight this year.
While long-term growth prospects are quite encouraging, the ongoing trade tiff between the United States and China remains a major concern for most investors interested in the medical instrument sphere. Not to forget, a significant amount of these imports comprises medical instruments, devices and medical imaging components. Post announcement of another set of tariffs on about $200 billion of Chinese imports (effective Sep 24), the medical devise fraternity is all the more apprehensive about its far-fetched impact on the industry as a whole.
Nonetheless, the third-quarter earnings season, which commenced last week, has so far picked up steam in this area, remaining unfazed by the international political hullaballoo. Let’s take a look at a couple of major Medical Instruments stocks, scheduled to release results on Oct 23.
Per the quantitative Zacks model, stocks with the advantageous combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP have higher chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Edwards Lifesciences Corporation (EW - Free Report) : The company is gearing up for posting an impressive third-quarter performance, banking primarily on the strength of Transcatheter Heart Valve Therapy (THVT) segment. With consistent therapy adoption across all geographies and a notable success in the United States, the company is expected to continue witnessing a solid uptick in the THVT segment during the to-be-reported quarter.
Edwards Lifesciences is also likely to steadily gain from a robust therapy implementation across all regions. It is anticipated to benefit from a continued TAVR (transcatheter aortic valve replacement) therapy adoption in Japan, driven by a solid uptake of SAPIEN 3. Moreover, some new centers have been opened Japan, which in turn, might have pushed up sales in the quarter to be reported. Accordingly, the Zacks Consensus Estimate for THV sales of $560 million reflects an increase of 16.4% from the year-ago quarter.
This apart, Edwards Lifesciences is estimated to gain traction from an encouraging performance at Surgical Heart Valve Therapy and Critical Care segments. Within the Surgical Heart Valve Therapy product group, the company’s latest aortic valve products are projected to aid underlying sales growth. Critical Care product group should experience solid growth across all product categories, courtesy of a strong performance by the company's core products. (read more: Will Edwards' Steady Overall Growth Drive Q3 Earnings?)
It is important to note that the company’s earnings outpaced the Zacks Consensus Estimate by an average of 5.69% in the trailing four quarters. The consensus mark for third-quarter earnings is pegged at $1.02 per share (21.4% increase from the year-ago period) on revenue estimates of $925 million (a 12.6% improvement from the year-ago figure).
Edwards Lifesciences Corporation Price and EPS Surprise
Further, going by our proven Zacks methodology, Edwards Lifesciences has a Zacks Rank #2 and an Earnings ESP of +0.67%, a combination that suggests that the company is likely to beat estimates this reporting cycle. You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian Medical Systems Inc. : We are upbeat about this company’s oncology business that contributed around 94.1% to the company’s top line in the last reported fiscal third quarter. In the same period, oncology revenues were up 18% year over year. The figure improved 16% at constant currency.
Significantly, a huge prospect in the Halcyon radiotherapy treatment system is likely to be one the key highlights of the fiscal fourth quarter. Moreover, the company has been addressing the tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products and international contract wins in the oncology domain.
Management continues to believe that 360 Oncology will be a driver of future growth for the company, especially in the cancer care coordination market. (read more: Varian Medical Q4 Earnings: Is a Surprise in Store?)
Currently, the Zacks Consensus Estimate for fourth-quarter fiscal 2018 revenues is pegged at $762.7 million, representing a 3.2% rise. The same for adjusted earnings stands at $1.19, indicating 9.2% growth on a year-over-year basis.
Varian Medical Systems, Inc. Price and EPS Surprise
Additional good news is that the company’s bottom line trumped the Zacks Consensus Estimate by an average of 2.81% in the preceding four quarters.
However, despite such solid prospects, our quantitative model does not conclusively forecast an earnings beat for the company as Varian has an Earnings ESP of -0.57% and a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Moreover, the company needs a positive ESP to be confident about a likely earnings surprise
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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EW, VAR Earnings Due on Oct 23: Here Are Key Predictions
The year 2018 has so far been remarkably rewarding for the global medical instruments space in terms of research and development (R&D). Starting from inventions like an artificial pancreas, human-brain pacemaker, electronic skin that displays vital signs of the body, needle-free injections to many more such wonders, the medical instruments fraternity has been in the limelight this year.
While long-term growth prospects are quite encouraging, the ongoing trade tiff between the United States and China remains a major concern for most investors interested in the medical instrument sphere. Not to forget, a significant amount of these imports comprises medical instruments, devices and medical imaging components. Post announcement of another set of tariffs on about $200 billion of Chinese imports (effective Sep 24), the medical devise fraternity is all the more apprehensive about its far-fetched impact on the industry as a whole.
Nonetheless, the third-quarter earnings season, which commenced last week, has so far picked up steam in this area, remaining unfazed by the international political hullaballoo. Let’s take a look at a couple of major Medical Instruments stocks, scheduled to release results on Oct 23.
Per the quantitative Zacks model, stocks with the advantageous combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP have higher chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Edwards Lifesciences Corporation (EW - Free Report) : The company is gearing up for posting an impressive third-quarter performance, banking primarily on the strength of Transcatheter Heart Valve Therapy (THVT) segment. With consistent therapy adoption across all geographies and a notable success in the United States, the company is expected to continue witnessing a solid uptick in the THVT segment during the to-be-reported quarter.
Edwards Lifesciences is also likely to steadily gain from a robust therapy implementation across all regions. It is anticipated to benefit from a continued TAVR (transcatheter aortic valve replacement) therapy adoption in Japan, driven by a solid uptake of SAPIEN 3. Moreover, some new centers have been opened Japan, which in turn, might have pushed up sales in the quarter to be reported. Accordingly, the Zacks Consensus Estimate for THV sales of $560 million reflects an increase of 16.4% from the year-ago quarter.
This apart, Edwards Lifesciences is estimated to gain traction from an encouraging performance at Surgical Heart Valve Therapy and Critical Care segments. Within the Surgical Heart Valve Therapy product group, the company’s latest aortic valve products are projected to aid underlying sales growth. Critical Care product group should experience solid growth across all product categories, courtesy of a strong performance by the company's core products. (read more: Will Edwards' Steady Overall Growth Drive Q3 Earnings?)
It is important to note that the company’s earnings outpaced the Zacks Consensus Estimate by an average of 5.69% in the trailing four quarters. The consensus mark for third-quarter earnings is pegged at $1.02 per share (21.4% increase from the year-ago period) on revenue estimates of $925 million (a 12.6% improvement from the year-ago figure).
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise | Edwards Lifesciences Corporation Quote
Further, going by our proven Zacks methodology, Edwards Lifesciences has a Zacks Rank #2 and an Earnings ESP of +0.67%, a combination that suggests that the company is likely to beat estimates this reporting cycle. You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian Medical Systems Inc. : We are upbeat about this company’s oncology business that contributed around 94.1% to the company’s top line in the last reported fiscal third quarter. In the same period, oncology revenues were up 18% year over year. The figure improved 16% at constant currency.
Significantly, a huge prospect in the Halcyon radiotherapy treatment system is likely to be one the key highlights of the fiscal fourth quarter. Moreover, the company has been addressing the tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products and international contract wins in the oncology domain.
Management continues to believe that 360 Oncology will be a driver of future growth for the company, especially in the cancer care coordination market. (read more: Varian Medical Q4 Earnings: Is a Surprise in Store?)
Currently, the Zacks Consensus Estimate for fourth-quarter fiscal 2018 revenues is pegged at $762.7 million, representing a 3.2% rise. The same for adjusted earnings stands at $1.19, indicating 9.2% growth on a year-over-year basis.
Varian Medical Systems, Inc. Price and EPS Surprise
Varian Medical Systems, Inc. Price and EPS Surprise | Varian Medical Systems, Inc. Quote
Additional good news is that the company’s bottom line trumped the Zacks Consensus Estimate by an average of 2.81% in the preceding four quarters.
However, despite such solid prospects, our quantitative model does not conclusively forecast an earnings beat for the company as Varian has an Earnings ESP of -0.57% and a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Moreover, the company needs a positive ESP to be confident about a likely earnings surprise
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>