Back to top

Image: Bigstock

Invitae (NVTA) to Report Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Invitae Corporation (NVTA - Free Report) is scheduled to release first-quarter 2021 results on May 4, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 8.6%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $102 million, suggesting growth of 58.8% from the year-ago reported figure. The consensus estimate for the bottom line stands at a loss of 60 cents per share.

Factors to Note

Over the last few quarters, genetic testing, one of Invitae’s key business segments, has been consistently delivering robust results, a trend that is likely to have continued in the first quarter.

The company is likely to have displayed robust volume growth across legacy Invitae product offerings in the first quarter, while witnessing sustained test mix. This, in turn, might have driven first-quarter performance.

The company’s non-invasive prenatal screening (NIPS) using maternal cell-free DNA has been strengthening its portfolio of comprehensive women's health genetic testing services lately. This is expected to get reflected in the first-quarter results.

Moreover, Invitae is likely to have displayed third-party payer revenue growth in the first quarter on the back of higher Medicare payments and continued improvement in commercial third-party payer performance, especially with the company’s hereditary cancer and NIPS test.

Invitae Corporation Price and EPS Surprise

Invitae Corporation Price and EPS Surprise

Invitae Corporation price-eps-surprise | Invitae Corporation Quote

In February 2021, Invitae added tools from a digital health artificial intelligence (AI) company — Medneon — to its solid clinical workflow and patient education support offerings. Patients with cancer and clinicians will receive help from these additional capabilities, which in turn will make it easier to determine who needs testing and how to utilize genetic information to customize treatment.

Also in the same month, the company expanded its capabilities of its advanced clinical chatbot Gia, thereby boosting telemedicine support for patients and clinicians.

Further, the company completed the buyout of ArcherDX in October 2020, which will enable Invitae to bring comprehensive cancer genetics and precision oncology to patients globally.

These developments are likely to have contributed to the to-be-reported quarter’s performance.

What Our Quantitative Model Suggests

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.

Earnings ESP: Invitae has an Earnings ESP of -2.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Invitae carries a Zacks Rank #4 (Sell).

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.

McKesson Corporation (MCK - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AmerisourceBergen Corporation (ABC - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank of 3.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>