Medical is one of the seven sectors in the S&P 500 cohort that is expected to witness earnings growth in the second quarter. The sector is likely to record earnings growth of 3.4% on revenue improvement of 7.7%.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for the S&P 500 companies are expected to be down 3.4% year over year on 0.4% revenue decline.
Medical Product, being an important component of the Medical sector, is expected to follow the same growth trajectory this earnings season.
Here, we take a look at four Medical product stocks set to report their quarterly figures on Aug 4:
Nxstage Medical Inc develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure.
Notably, the company is set to report second-quarter earnings before the opening bell. We believe that Nxstage Medical is well poised for growth, thanks to solid sales at the System One segment. Moreover, Nocturnal Home Hemodialysis Therapy and Nx2me Connected Health are also expected to expand the company’s network in the skilled nursing market.
However, our proven model does not predict a beat for the company, given the combination of a Zacks Rank #3 (Hold) and 0.00% Earnings ESP. We note that the Most Accurate estimate and Zacks Consensus Estimate stand at a loss of 4 cents.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
We also note that Nxstage Medical’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 35.63%.
Hill-Rom Holdings Inc is a medical technology company. The company is scheduled to report ITS third-quarter earnings, before the market opens.
Hill-Rom is poised to benefit from strong growth in its Welch Allyn business and robust performance from products like the VisiVest System.
Nevertheless, the company is not likely to beat earnings as it has a Zacks Rank #3 (Hold) and Earnings ESP of -1.32%. We note the Most Accurate estimate for the company stands at 75 cents, while the Zacks Consensus Estimate is pegged at 76 cents.
We also note that Hill-Rom’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 5.94%.
Agios Pharmaceuticals Inc (AGIO - Free Report) is engaged in the discovery and development of medicines for the treatment of cancer and rare genetic metabolic disorders in the U.S. We note that the company is scheduled to report second-quarter earnings results, before the opening bell.
Agios’ collaboration with Celgene, which is primarily focused on metabolic immuno-oncology, is encouraging. We are also positive on the company’s efforts to develop its IDH mutant inhibitors and PKR activators.
Nevertheless, our proven model does not conclusively show that the company is likely to beat estimates, given the combination of a Zacks Rank #3 and Earnings ESP of -11.72%. The Most Accurate estimate for the company stands at a loss of $1.43 while the Zacks Consensus Estimate is pegged at a loss of $1.28.
AtriCure Inc (ATRC - Free Report) provides atrial fibrillation solutions to hospitals and medical centers in the U.S. and international markets. The company is set to report second-quarter results, after the closing bell.
We believe that the FDA approval of AtriClip PRO2 Exclusion System is the key growth driver. The company is also expected to benefit from the strong sales in US.
Nevertheless, the company is not likely to beat estimates, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. Notably, the Zacks Consensus Estimate and the Most Accurate estimate for the company is currently pegged at a loss of 31 cents.
We also note that the results of AtriCure compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 6.28 %.
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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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Medical is one of the seven sectors in the S&P 500 cohort that is expected to witness earnings growth in the second quarter. The sector is likely to record earnings growth of 3.4% on revenue improvement of 7.7%.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for the S&P 500 companies are expected to be down 3.4% year over year on 0.4% revenue decline.
Medical Product, being an important component of the Medical sector, is expected to follow the same growth trajectory this earnings season.
Here, we take a look at four Medical product stocks set to report their quarterly figures on Aug 4:
Nxstage Medical Inc develops, manufactures and markets products and services for patients suffering from chronic or acute kidney failure.
Notably, the company is set to report second-quarter earnings before the opening bell. We believe that Nxstage Medical is well poised for growth, thanks to solid sales at the System One segment. Moreover, Nocturnal Home Hemodialysis Therapy and Nx2me Connected Health are also expected to expand the company’s network in the skilled nursing market.
However, our proven model does not predict a beat for the company, given the combination of a Zacks Rank #3 (Hold) and 0.00% Earnings ESP. We note that the Most Accurate estimate and Zacks Consensus Estimate stand at a loss of 4 cents.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 going into the earnings announcement, especially when the company is seeing negative estimate revisions.
We also note that Nxstage Medical’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 35.63%.
Hill-Rom Holdings Inc is a medical technology company. The company is scheduled to report ITS third-quarter earnings, before the market opens.
Hill-Rom is poised to benefit from strong growth in its Welch Allyn business and robust performance from products like the VisiVest System.
Nevertheless, the company is not likely to beat earnings as it has a Zacks Rank #3 (Hold) and Earnings ESP of -1.32%. We note the Most Accurate estimate for the company stands at 75 cents, while the Zacks Consensus Estimate is pegged at 76 cents.
We also note that Hill-Rom’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 5.94%.
Agios Pharmaceuticals Inc (AGIO - Free Report) is engaged in the discovery and development of medicines for the treatment of cancer and rare genetic metabolic disorders in the U.S. We note that the company is scheduled to report second-quarter earnings results, before the opening bell.
Agios’ collaboration with Celgene, which is primarily focused on metabolic immuno-oncology, is encouraging. We are also positive on the company’s efforts to develop its IDH mutant inhibitors and PKR activators.
Nevertheless, our proven model does not conclusively show that the company is likely to beat estimates, given the combination of a Zacks Rank #3 and Earnings ESP of -11.72%. The Most Accurate estimate for the company stands at a loss of $1.43 while the Zacks Consensus Estimate is pegged at a loss of $1.28.
AtriCure Inc (ATRC - Free Report) provides atrial fibrillation solutions to hospitals and medical centers in the U.S. and international markets. The company is set to report second-quarter results, after the closing bell.
We believe that the FDA approval of AtriClip PRO2 Exclusion System is the key growth driver. The company is also expected to benefit from the strong sales in US.
Nevertheless, the company is not likely to beat estimates, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. Notably, the Zacks Consensus Estimate and the Most Accurate estimate for the company is currently pegged at a loss of 31 cents.
We also note that the results of AtriCure compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 6.28 %.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 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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