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Among the broader healthcare space, Abbott Laboratories (ABT - Free Report) ) and Intuitive Surgical (ISRG - Free Report) ) are two medical stocks that will highlight this week’s earnings lineup.
Let’s see if now is a good time to buy either of these renowned medical product producers ahead of their second-quarter results on Thursday, July 20.
Abbott Laboratories Q2 Preview
Multinational healthcare company Abbott Laboratories’ Q2 results are much anticipated as a provider of breakthrough medical products for diagnostics, medical devices, nutrition, and branded generic pharmaceuticals.
Notably, Abbott Laboratories is expected to see a dip in its top and bottom line with the company up against a tough-to-compete against prior-year quarter. Still, the Zacks Expected Surprise Prediction (ESP) indicates Abbott Laboratories could top earnings expectations.
According to Zacks estimates Abbott Laboratories' Q2 sales are projected at $9.70 billion, down -14% from a year ago. Earnings are forecasted to decline -27% at $1.04 per share compared to EPS of $1.43 in the prior-year quarter. With that being said, Abbott Laboratories is expected to post an earnings surprise with the Most Accurate Estimate having Q2 EPS at $1.05 per share and slightly above the Zacks Consensus.
Plus, Abbott Laboratories has surpassed earnings estimates for eight consecutive quarters dating back to July of 2021.
Image Source: Zacks Investment Research
Intuitive Surgical Q2 Preview
Anticipation is high for Intuitive Surgical’s Q2 results as well with the company being a pioneer in robotic-assisted surgery and prospects increasing in regard to the assistance of artificial intelligence (AI).
To that point, Intuitive Surgical is expecting solid top and bottom line growth for the quarter. Earnings are forecasted to jump 16% at $1.32 per share with sales expected at $1.73 billion, up 14% from Q2 2022.
The Zacks ESP does indicate Intuitive Surgical could miss earnings expectations with the Most Accurate Estimate having Q2 EPS at $1.30 and -1% below the Zacks Consensus. With that being said, Intuitive Surgical most recently surpassed Q1 earnings estimates by 3% in April and investors are hoping the company can build on this.
Image Source: Zacks Investment Research
EPS Outlook
Following a very tough to compete against year Abbott Laboratories earnings are now forecasted to decline -18% in fiscal 2023 at $4.39 per share compared to EPS of $5.34 in 2022. However, FY24 earnings are expected to rebound and rise 4% at $4.54 per share which would still represent 24% growth over the last five years with 2020 earnings at $3.65 per share.
Image Source: Zacks Investment Research
Turning to Intuitive Surgical, annual earnings are anticipated to rise 17% this year at $5.47 per share compared to EPS of $4.68 in 2022. Even better, FY24 earnings are expected to jump another 16% at $6.35 per share.
More impressive, fiscal 2024 projections would represent 115% EPS growth over the last five years with 2020 earnings at $2.94 per share.
Image Source: Zacks Investment Research
Takeaway
Abbott Laboratories and Intuitive Surgical stock currently sport a Zacks Rank #2 (Buy). While the expansive growth of these medical product innovators has somewhat slowed in recent years their bottom-line expansion is still attractive.
Furthermore, annual earnings estimate revisions have remained higher over the last 60 days which is a good sign for Abbott Laboratories and Intuitive Surgical stock leading up to their second quarter reports. It would be no surprise if both companies were able to offer favorable guidance which could be a strong catalyst going forward.
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2 Medical Stocks to Buy as Earnings Approach
Among the broader healthcare space, Abbott Laboratories (ABT - Free Report) ) and Intuitive Surgical (ISRG - Free Report) ) are two medical stocks that will highlight this week’s earnings lineup.
Let’s see if now is a good time to buy either of these renowned medical product producers ahead of their second-quarter results on Thursday, July 20.
Abbott Laboratories Q2 Preview
Multinational healthcare company Abbott Laboratories’ Q2 results are much anticipated as a provider of breakthrough medical products for diagnostics, medical devices, nutrition, and branded generic pharmaceuticals.
Notably, Abbott Laboratories is expected to see a dip in its top and bottom line with the company up against a tough-to-compete against prior-year quarter. Still, the Zacks Expected Surprise Prediction (ESP) indicates Abbott Laboratories could top earnings expectations.
According to Zacks estimates Abbott Laboratories' Q2 sales are projected at $9.70 billion, down -14% from a year ago. Earnings are forecasted to decline -27% at $1.04 per share compared to EPS of $1.43 in the prior-year quarter. With that being said, Abbott Laboratories is expected to post an earnings surprise with the Most Accurate Estimate having Q2 EPS at $1.05 per share and slightly above the Zacks Consensus.
Plus, Abbott Laboratories has surpassed earnings estimates for eight consecutive quarters dating back to July of 2021.
Image Source: Zacks Investment Research
Intuitive Surgical Q2 Preview
Anticipation is high for Intuitive Surgical’s Q2 results as well with the company being a pioneer in robotic-assisted surgery and prospects increasing in regard to the assistance of artificial intelligence (AI).
To that point, Intuitive Surgical is expecting solid top and bottom line growth for the quarter. Earnings are forecasted to jump 16% at $1.32 per share with sales expected at $1.73 billion, up 14% from Q2 2022.
The Zacks ESP does indicate Intuitive Surgical could miss earnings expectations with the Most Accurate Estimate having Q2 EPS at $1.30 and -1% below the Zacks Consensus. With that being said, Intuitive Surgical most recently surpassed Q1 earnings estimates by 3% in April and investors are hoping the company can build on this.
Image Source: Zacks Investment Research
EPS Outlook
Following a very tough to compete against year Abbott Laboratories earnings are now forecasted to decline -18% in fiscal 2023 at $4.39 per share compared to EPS of $5.34 in 2022. However, FY24 earnings are expected to rebound and rise 4% at $4.54 per share which would still represent 24% growth over the last five years with 2020 earnings at $3.65 per share.
Image Source: Zacks Investment Research
Turning to Intuitive Surgical, annual earnings are anticipated to rise 17% this year at $5.47 per share compared to EPS of $4.68 in 2022. Even better, FY24 earnings are expected to jump another 16% at $6.35 per share.
More impressive, fiscal 2024 projections would represent 115% EPS growth over the last five years with 2020 earnings at $2.94 per share.
Image Source: Zacks Investment Research
Takeaway
Abbott Laboratories and Intuitive Surgical stock currently sport a Zacks Rank #2 (Buy). While the expansive growth of these medical product innovators has somewhat slowed in recent years their bottom-line expansion is still attractive.
Furthermore, annual earnings estimate revisions have remained higher over the last 60 days which is a good sign for Abbott Laboratories and Intuitive Surgical stock leading up to their second quarter reports. It would be no surprise if both companies were able to offer favorable guidance which could be a strong catalyst going forward.