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Medical Products Stock Earnings on Jul 30: BAX, SYK & More

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The Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification) seems to have shown more resilience compared to others in the first quarter of 2020. However, unlike first-quarter, which had witnessed partial impact of the COVID-19 pandemic, the second quarter bore the brunt of it.

The first quarter saw most of the medical companies either withdrawing or lowering their guidance in the wake of uncertainty arising out of the pandemic. Moreover, manufacturing and supply chain disruptions have been putting substantial pressure on the performance of the companies. Also, companies depending on elective and non-critical procedures (orthopaedic, cardiac and dental comprising the major portion) have been hit significantly and anticipate the procedure volume and system replacement disruption to intensify in the second quarter. These factors might get reflected in the second-quarter performance.

Integral to the broader Medical sector, Medical Products companies’ growth is likely to have taken hit owing to the pandemic. Nonetheless, most of them have been gaining from this public health crisis. These companies have been able to partially mitigate the downsides on the back of significant market adoption of their COVID-19-related healthcare-support products and services. Also, this sector’s new COVID-19-related healthcare offerings have been widely adopted and may have contributed to the second-quarter performance.

Going by the latest Earnings Preview, this sector’s total second-quarter earnings are expected to fall 6.9%, while revenues are projected to exhibit growth of 1.2%.

Let us take a look at five Medical Product companies that are scheduled to announce results on Jul 30.

Baxter International Inc.’s (BAX - Free Report) new product launches, including PrisMax in the United States, and rising global demand for its continuous renal replacement therapies are likely to get reflected in Acute Therapies business’ second-quarter performance. Moreover, the company’s strong product portfolio, and the planned launch of therapies and products might have contributed to the to-be-reported quarter’s performance. However, the deferral of elective and non-critical procedures may have weighed on Baxter’s Advanced Surgery segment in the second quarter. (Read more: Baxter to Report Q2 Earnings: What’s in the Cards?)

Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baxter International Inc. Price and EPS Surprise

Baxter International Inc. Price and EPS Surprise

Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote

Stryker Corporation’s (SYK - Free Report) MedSurg and Neurotechnology & Spine segments performance in second-quarter 2020 are likely to reflect the impact of the pandemic. Also, weak performing Knee and Hips sub segment may have weighed on the company’s Orthopaedic segment’ performance in the second quarter. Nonetheless, sustained strong demand for Mako TKA (Total Knee Arthoplasty) platform or cementless knee and other 3D printed products is anticipated to get reflected in the segment’s second-quarter performance. (Read more: Stryker to Report Q2 Earnings: What's in the Cards?)

Stryker has an Earnings ESP of -12.58% and a Zacks Rank #3.

Stryker Corporation Price and EPS Surprise

Stryker Corporation Price and EPS Surprise

Stryker Corporation price-eps-surprise | Stryker Corporation Quote

Teleflex Incorporated (TFX - Free Report) second-quarter 2020 revenues are likely to reflect balanced growth across the majority of segments and geographies. Further, continued momentum in UroLift may have contributed to the second-quarter performance.

Teleflex has an Earnings ESP of +5.77% and a Zacks Rank #3.

Teleflex Incorporated Price and EPS Surprise

Teleflex Incorporated Price and EPS Surprise

Teleflex Incorporated price-eps-surprise | Teleflex Incorporated Quote

Bio-Rad Laboratories, Inc. (BIO - Free Report) , during its first-quarter 2020 earnings call, had confirmed adverse impact on worldwide sales on account of the pandemic. The demand slowdown in the United States and Europe, which was felt toward the end of the first quarter, is likely to have continued in second-quarter 2020. (Read more: Bio-Rad to Report Q2 Earnings: What's in the Offing?)

Bio-Rad has an Earnings ESP of 0.00% and a Zacks Rank #3.

BioRad Laboratories, Inc. Price and EPS Surprise

BioRad Laboratories, Inc. Price and EPS Surprise

BioRad Laboratories, Inc. price-eps-surprise | BioRad Laboratories, Inc. Quote

Per the preliminary announcement, Quidel Corporation’s (QDEL - Free Report) fiscal second-quarter revenues are expected between $201 million and $202 million, suggesting an improvement of 86-87% from the year-ago period. The company is likely to have witnessed solid performance by its COVID-19 Molecular Diagnostics and Rapid Immunoassay products. (Read more: Quidel to Report Q2 Earnings: What's in the Offing?)

Quidel has an Earnings ESP of -21.43% and a Zacks Rank of 3.

Quidel Corporation Price and EPS Surprise

Quidel Corporation Price and EPS Surprise

Quidel Corporation price-eps-surprise | Quidel Corporation Quote

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