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Co-Diagnostics (CODX) to Post Q2 Earnings: What's in Store?

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Co-Diagnostics, Inc. (CODX - Free Report) is expected to release second-quarter 2020 results in the early weeks of August.

In the last reported quarter, the company delivered a negative earnings surprise of 25%. Further, it missed estimates in each of the trailing four quarters, the average negative surprise being 60.4%.

Q2 Estimates

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $27 million, suggesting significant growth from the prior-year quarter. The same for earnings per share stands at 61 cents.

Factors to Note

Co-Diagnostics has been increasing production capacity to cater to rising demand for its COVID-19 tests. Hence, the company’s second-quarter revenues are likely to reflect increase in COVID-19 test sales.

Further, sales of Logix Smart COVID-19 test kits might have contributed to expansion in gross margin.

CoDiagnostics, Inc. Price and EPS Surprise

CoDiagnostics, Inc. Price and EPS Surprise

CoDiagnostics, Inc. price-eps-surprise | CoDiagnostics, Inc. Quote

On Feb 24, 2020, Co-Diagnostics became the first company in the United States to receive CE marking for COVID-19 test kit.

Moreover, on Apr 6, 2020, the company received FDA Emergency Use Authorization (EUA) for its Logix Smart COVID-19 test.

The company has also received COVID-19 test orders from public and private organizations in about 50 countries and over 15 states in the United States.

These positive developments are likely to get reflected in the company’s second-quarter results.

However, the Co-Diagnostics may have experienced a rise in operating expenses, which in turn might have weighed on the to-be-reported quarter’s performance.

What Our Quantitative Model Suggests

Per our proven model, the 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.

Earnings ESP: Co-Diagnostics 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: Co-Diagnostics 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.

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +15.15% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Frequency Therapeutics, Inc. has an Earnings ESP of +12.31% and a Zacks Rank of 3.

NuCana plc (NCNA - Free Report) has an Earnings ESP of +8.07% and a Zacks Rank of 2.

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