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What's in Store for Intersect ENT's (XENT) Q1 Earnings?
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Intersect ENT, Inc. is slated to report first-quarter results on May 10, before the opening bell.
In the last-reported quarter, the company reported net loss of 54 cents, wider than the Zacks Consensus Estimate of a loss of 31 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on one occasion and missed in three, the average miss being 25.37%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
With the pandemic situation more or less remaining unchanged through the months of the first quarter, we expect Intersect ENT to have witnessed a persistent decline in hospitals suspending elective procedures and reduced ENT office visits, thus impacting overall revenues. In this regard, the company in its March update noted that it is worried about its first-quarter performance as well on the significant surge in COVID-19 cases that began in mid-December and continued into the first quarter, affecting ENT procedures. Even with the vaccine rollout, we expect the adverse impact to reflect on first-quarter results.
However, the company’s SINUVA business has achieved record revenue growth over the last couple of quarters driven by expanded SINUVA payer coverage, an enhanced go-to-market model enabling coverage, benefit verification, and distribution and payment to physicians, who are initiating drug therapy in the office with SINUVA. Additionally, SINUVA is benefitting from the pandemic-led accelerated shift of care from the hospital and ambulatory surgery centers to the office setting. With the expanded payer coverage continuously broadening the customer base and the shift of care to office settings still taking place, we expect this trend to have added to overall first-quarter growth.
In addition, the VenSure sinus balloon acquired in the Fiagon transaction recorded its first sales in the fourth quarter of 2020. The company increased its relevance with the ENT surgery community with the addition of Fiagon-developed Cube, sinus navigation and its associated consumable tools portfolio. We expect this acquisition to have recorded sales in the first quarter.
In January 2021, CMS approved a revised coding application for a distinct code for PROPEL and the consolidation of the two SINUVA codes into a single product code. We expect these changes to have positively impacted both the PROPEL and SINUVA businesses and revenues in the first quarter.
PROPEL’s in-office registered significant growth in the last-reported quarter as physicians are using PROPEL more frequently along with office-space balloon sinuplasty. With the situation remaining the same, we expect this trend to have continued and contributed to first-quarter sales.
The Estimate Picture
For first-quarter 2021, the Zacks Consensus Estimate for total revenues is pegged at $23.30 million, implying a rise of 17.5% year over year.
The consensus estimate for loss per share is pegged at 42 cents. The company had reported loss of 54 cents per share in the year-ago quarter.
What Our Model Suggests
Our proven model does not conclusively predict an earnings beat for Intersect ENT this time around. 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. But this is not the case here as you will see below.
Earnings ESP: Intersect ENT 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 currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Encompass Health Corporation (EHC - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +3.89%.
Elanco Animal Health Incorporated (ELAN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank of 2, at present.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
What's in Store for Intersect ENT's (XENT) Q1 Earnings?
Intersect ENT, Inc. is slated to report first-quarter results on May 10, before the opening bell.
In the last-reported quarter, the company reported net loss of 54 cents, wider than the Zacks Consensus Estimate of a loss of 31 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on one occasion and missed in three, the average miss being 25.37%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
With the pandemic situation more or less remaining unchanged through the months of the first quarter, we expect Intersect ENT to have witnessed a persistent decline in hospitals suspending elective procedures and reduced ENT office visits, thus impacting overall revenues. In this regard, the company in its March update noted that it is worried about its first-quarter performance as well on the significant surge in COVID-19 cases that began in mid-December and continued into the first quarter, affecting ENT procedures. Even with the vaccine rollout, we expect the adverse impact to reflect on first-quarter results.
However, the company’s SINUVA business has achieved record revenue growth over the last couple of quarters driven by expanded SINUVA payer coverage, an enhanced go-to-market model enabling coverage, benefit verification, and distribution and payment to physicians, who are initiating drug therapy in the office with SINUVA. Additionally, SINUVA is benefitting from the pandemic-led accelerated shift of care from the hospital and ambulatory surgery centers to the office setting. With the expanded payer coverage continuously broadening the customer base and the shift of care to office settings still taking place, we expect this trend to have added to overall first-quarter growth.
In addition, the VenSure sinus balloon acquired in the Fiagon transaction recorded its first sales in the fourth quarter of 2020. The company increased its relevance with the ENT surgery community with the addition of Fiagon-developed Cube, sinus navigation and its associated consumable tools portfolio. We expect this acquisition to have recorded sales in the first quarter.
Intersect ENT, Inc. Price and EPS Surprise
Intersect ENT, Inc. price-eps-surprise | Intersect ENT, Inc. Quote
In January 2021, CMS approved a revised coding application for a distinct code for PROPEL and the consolidation of the two SINUVA codes into a single product code. We expect these changes to have positively impacted both the PROPEL and SINUVA businesses and revenues in the first quarter.
PROPEL’s in-office registered significant growth in the last-reported quarter as physicians are using PROPEL more frequently along with office-space balloon sinuplasty. With the situation remaining the same, we expect this trend to have continued and contributed to first-quarter sales.
The Estimate Picture
For first-quarter 2021, the Zacks Consensus Estimate for total revenues is pegged at $23.30 million, implying a rise of 17.5% year over year.
The consensus estimate for loss per share is pegged at 42 cents. The company had reported loss of 54 cents per share in the year-ago quarter.
What Our Model Suggests
Our proven model does not conclusively predict an earnings beat for Intersect ENT this time around. 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. But this is not the case here as you will see below.
Earnings ESP: Intersect ENT 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 currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +3.26% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health Corporation (EHC - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +3.89%.
Elanco Animal Health Incorporated (ELAN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank of 2, at present.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>