CryoLife Inc. is set to report second-quarter 2016 earnings results on Jul 25. Last quarter, the company posted earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 8 cents (400%).
We note that CryoLife surpassed the Zacks Consensus Estimate in the last four quarters, by an average of 486.67%.
Let’s see how things are shaping up for this quarter.
Factors at Play
We believe strong momentum at CryoLife’s tissue processing business, BioGlue business and a string of strategic initiatives are key growth drivers.
The ongoing clinical trial for PerClot IDE is a key catalyst for CryoLife. The company is currently in discussion with the FDA to change the trial protocol. CryoLife expects to resume enrolling patients in the trial during the second half of the year.
CryoLife is also continuing its clinical trial in order to gain FDA approval in China for the BioGlue product.
Meanwhile, CryoLife’s acquisitions of On-X and PhotoFix will drive growth and margin. This will expand the company’s market opportunity with a differentiated mechanical heart valve technology and more than double its U.S. cardiac surgery sales force.
Earnings Whispers
Our proven model does not conclusively show that CryoLife is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or at least 3 (hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CryoLife currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents.
Zacks Rank: CryoLife has a Zacks Rank #2 which increases the possibility of an earnings beat. However, when combined with a 0.00% ESP, it makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Nektar Therapeutics (NKTR - Free Report) , earnings ESP of + 50% and a Zacks Rank #1.
Zoetis Inc. (ZTS - Free Report) , earnings ESP of + 2.27% and a Zacks Rank #1.
CytRx Corporation , earnings ESP of + 15% and a Zacks Rank #1.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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CryoLife Inc. is set to report second-quarter 2016 earnings results on Jul 25. Last quarter, the company posted earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 8 cents (400%).
We note that CryoLife surpassed the Zacks Consensus Estimate in the last four quarters, by an average of 486.67%.
Let’s see how things are shaping up for this quarter.
Factors at Play
We believe strong momentum at CryoLife’s tissue processing business, BioGlue business and a string of strategic initiatives are key growth drivers.
The ongoing clinical trial for PerClot IDE is a key catalyst for CryoLife. The company is currently in discussion with the FDA to change the trial protocol. CryoLife expects to resume enrolling patients in the trial during the second half of the year.
CryoLife is also continuing its clinical trial in order to gain FDA approval in China for the BioGlue product.
Meanwhile, CryoLife’s acquisitions of On-X and PhotoFix will drive growth and margin. This will expand the company’s market opportunity with a differentiated mechanical heart valve technology and more than double its U.S. cardiac surgery sales force.
Earnings Whispers
Our proven model does not conclusively show that CryoLife is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or at least 3 (hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CryoLife currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents.
Zacks Rank: CryoLife has a Zacks Rank #2 which increases the possibility of an earnings beat. However, when combined with a 0.00% ESP, it makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Nektar Therapeutics (NKTR - Free Report) , earnings ESP of + 50% and a Zacks Rank #1.
Zoetis Inc. (ZTS - Free Report) , earnings ESP of + 2.27% and a Zacks Rank #1.
CytRx Corporation , earnings ESP of + 15% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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