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Medical Products' Aug 4 Earnings Roster: MCK, ABC & More

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The Medical Products companies’, an integral part of the broader Medical sector, quarterly results are likely to reflect improved business growth in this reporting cycle compared to the COVID-19 affected dismal performance in the year-ago quarter.

Given the ramped-up vaccination process, there has been a fall in the number of COVID-19 cases across the United States and other developed markets throughout the second quarter, which has led to substantial rebound in base sales volumes. Non-COVID and elective legacy businesses of such companies have witnessed recovery owing to the easing of restrictions.

Apart from this, substantial market adoption of COVID-19-related healthcare-support products and services is likely to have contributed to the second-quarter results. In fact, Abbott’s (ABT - Free Report) underlying legacy diagnostics business continued to improve in the second quarter, driven by improved routine diagnostic testing levels and the continued rollout of Alinity platforms.

Meanwhile, even though vaccine and therapeutic makers have been gaining from the significant market adoption of their COVID-19-related healthcare-support products and services, the demand for COVID-19 testing has slowed down (owing to mass vaccination).

The Medical sector has delivered encouraging quarterly performance so far this reporting cycle. According to the latest Earnings Preview, this sector’s second-quarter earnings are expected to improve 23.2% on 18.4% revenue growth.

Let’s take a look at four Medical Product stocks that are scheduled to announce results on Aug 4.

McKesson Corporation (MCK - Free Report) : McKesson expects fiscal first-quarter 2022 results to reflect segmental strength. The U.S. Pharmaceutical and Specialty Solutions segment might have acted as a key growth driver in the quarter to be reported. The segment may have benefited from market growth and higher volumes from retail national account customers in the to-be-reported quarter. Also, growing demand for COVID-19 tests and personal protective equipment (PPE) in the Primary Care and Extended businesses is likely to have favored the company’s Medical-Surgical solutions segment. (Read more: McKesson to Report Q1 Earnings: What’s in the Offing?)

Our proven model predicts an earnings beat for McKesson 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. 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 +9.28%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

McKesson Corporation Price and EPS Surprise

McKesson Corporation Price and EPS Surprise

McKesson Corporation price-eps-surprise | McKesson Corporation Quote

AmerisourceBergen Corporation : Sustained growth in specialty product sales, including COVID-19 treatments, at the Pharmaceutical Distribution segment is likely to have benefited AmerisourceBergen’s fiscal third-quarter 2021 performance. Solid organic growth rates in the U.S. pharmaceutical market, population demographics and improving patient access to medical care might get reflected in the to-be-reported quarter’s results. (Read more: AmerisourceBergen to Post Q3 Earnings: What’s in Store?)

AmerisourceBergen has a Zacks Rank #3 and an Earnings ESP of +1.58%.

10x Genomics Inc. (TXG - Free Report) : Robust growth across 10x Genomics’ three product platforms, Chromium Single Cell, Visium Spatial and In Situ Analysis, is likely to have contributed to the company’s second-quarter 2021 performance. Apart from this, the company is likely to have witnessed top-line growth as a result of higher consumables revenue driven by growth in the instrument installed base.

10x Genomics has a Zacks Rank #3 and an Earnings ESP of 0.00%.

10x Genomics Inc. Price and EPS Surprise

10x Genomics Inc. Price and EPS Surprise

10x Genomics Inc. price-eps-surprise | 10x Genomics Inc. Quote

Globus Medical, Inc. (GMED - Free Report) : Globus Medical is likely to witness top-line growth in the second quarter of 2021 on the back of improvement in the U.S. revenues driven by the U.S. Spine and Enabling Technologies businesses. Pull-through from robotics, contributions from product introductions and recovery in biologics business drove first-quarter growth and the momentum is likely to have continued in the to-be-reported quarter.

Globus Medical has a Zacks Rank #2 and an Earnings ESP of +2.51%.

Globus Medical, Inc. Price and EPS Surprise

Globus Medical, Inc. Price and EPS Surprise

Globus Medical, Inc. price-eps-surprise | Globus Medical, Inc. Quote

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