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T2 Biosystems (TTOO) to Post Q2 Earnings: What's in Store?

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T2 Biosystems, Inc. (TTOO - Free Report) is expected to release second-quarter 2020 results in the early weeks of August. The company reported earnings surprise of 21.4% in the last reported quarter.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2020 bottom line is pegged at a loss of 18 cents per share.

Factors to Note

Growing test panel instrument sales are likely to get reflected in T2 Biosystems’ second-quarter produce revenues. This, in turn, might have contributed to the company’s performance in the to-be-reported quarter.

Per the preliminary announcement, second-quarter 2020 total revenues are expected between $2.4 million and $2.6 million. Product revenues are estimated in the range of $1-$1.1 million.

Further, research and grant contribution revenues are anticipated in the band of $1.4-$1.5 million.

T2 Biosystems, Inc. Price and EPS Surprise

T2 Biosystems, Inc. Price and EPS Surprise

T2 Biosystems, Inc. price-eps-surprise | T2 Biosystems, Inc. Quote

In June, the company announced the U.S. launch of the T2SARS-CoV-2 Panel – the new molecular diagnostic test for the identification of SARS-CoV-2 (the virus causing COVID-19).

In March, T2 Biosystems — the only company with solutions to detect sepsis causing pathogens — received a multiyear Innovative Technology contract from Vizient, Inc.

Further, in the same month, the company announced a worldwide licensing agreement of COVID-19, novel coronavirus assay from Hackensack Meridian Health’s Center for Discovery and Innovation. The assay will be adapted to run on T2 Biosystems’ FDA-cleared T2Dx Instrument.

These developments are likely to have positively impacted the company’s second-quarter performance.

In 2020, the company has been focused on advancing programs funded by the $69 million milestone-based government contract awarded in September 2019. This includes the next generation instrument and expanded panel, and a novel biothreat panel. This, in turn, may get reflected in the company’s second-quarter results.

Earnings Whispers

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see below.

Earnings ESP: T2 Biosystems has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation (IART - Free Report) has an Earnings ESP of +20.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank of 2.

Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +14.56% and a Zacks Rank of 3.

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