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Medical Device Stocks' Q4 Earnings on Feb 10: BIO, DXCM & LH
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The latest Earnings Preview reflects a stable quarterly performance for the Medical sector so far this reporting cycle. Going by the sector’s scorecard, 33.9% of the companies in the Medical sector, constituting nearly 53.7% of the sector’s market capitalization, reported earnings till Feb 2. Of these, 63.2% beat earnings estimates and 57.9% beat the same for revenues. Earnings increased 10% year over year on 12.1% higher revenues.
This scorecard reflects stability in the United States on the gradual reopening of the economy even amid the rise of the Omicron variant cases through the months of the fourth quarter. However, supply chain-related disruption along with hospital staffing shortages were prominent across many geographies. Also, many parts of the COVID-affected international market are still suffering due to lower cash flows and difficult economic conditions.
Overall, fourth-quarter earnings for the Medical sector are expected to rise 18.4% on a 12.8% sales increase. This compares with Q3’s reported earnings growth of 29.7% and revenue growth of 15.7%.
Medical Device Quarterly Synopsys
The dynamic nature of the COVID-19 crisis is fast transforming the medical products industry’s landscape. Integral to the broader Medical sector, Medical Device or Zacks-defined Medical Products companies’ collective business growth improved significantly in Q4, driven by the gradual lifting of restrictions. But the Q4 reporting cycle so far has shown a steep sequential decline in terms of the legacy base business of the companies due to the emergence of the new Omicron variant of COVID-19, which has once again put the non-COVID medical procedures on the back foot.
On the other hand, with the increase in the number of cases, testing, vaccine and therapeutic makers witnessed huge market adoption of their COVID-related healthcare support products and services in Q4. MedTech companies like Bio-Rad (BIO - Free Report) , DexCom (DXCM - Free Report) and LabCorp (LH - Free Report) are likely to have been impacted from these factors in Q4.
More specifically, the fourth-quarter results of the medical product stocks so far have shown temporary retraction of the base business compared to the third quarter. At the same time, diagnostic testing stocks, picked up momentum in Q4, in line with industry trends.
The Zacks Medical Product sector currently carries a Zacks Sector Rank in the bottom 40% (152 of 254 industries).
Let’s take a sneak peek into how the aforementioned MedTech stocks are poised prior to their fourth-quarter earnings on Feb 10.
Bio-Rad: The company has been witnessing substantial strength in end markets with a rebound in demand across both life science and diagnostic markets. However, we remain wary about the persistent supply-chain challenges, particularly in terms of the supply and cost of plastic raw materials, electronic components as well as rising logistics costs that have been limiting Bio-Rad’s ability to meet customer demand. Bio-Rad’s Life Science segment has been registering robust revenue growth since the past few quarters. We expect this growth momentum to have continued in the fourth quarter on the back of sustained growth in the company’s Polymerase Chain Reaction (PCR), Droplet Digital PCR (dPCR) and Process Media businesses. (Read more: Bio-Rad to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for Bio-Rad’s fourth-quarter earnings per share is pegged at $2.87. Revenues are expected to be $737.1 million.
Bio-Rad does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — which increases the odds of an earnings beat.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DexCom: DexCom’s fourth-quarter top line is likely to have witnessed an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”). In fact, per the preliminary announcement, DexCom — the leader in CGM — anticipates fourth-quarter 2021 revenues to be around $698 million (up 23% from the year-ago quarter). (Read more: DexCom to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for the fourth quarter of fiscal 2022 is pegged at earnings per share of 86 cents. Revenues are expected to be $696.7 million.
DexCom has an Earnings ESP of +1.13% and a Zacks Rank #4 (Sell).
LabCorp: Over the past few months, LabCorp has been witnessing continued sales rebound in the base business for both Diagnostics and Drug Development. Just like the previously-reported quarter, LabCorp’s fourth-quarter base-business performance is expected to have registered a recovery despite a spike in COVID-19 cases as patients and providers continue to return to routine healthcare checkups and pharmaceutical clients resume their important research activities. (Read more: LabCorp to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for the fourth quarter is pegged at earnings per share of $5.90. Revenues are expected to be $3.94 billion.
LabCorp has an Earnings ESP of +9.94% and a Zacks Rank #3.
Laboratory Corporation of America Holdings Price and EPS Surprise
Image: Bigstock
Medical Device Stocks' Q4 Earnings on Feb 10: BIO, DXCM & LH
The latest Earnings Preview reflects a stable quarterly performance for the Medical sector so far this reporting cycle. Going by the sector’s scorecard, 33.9% of the companies in the Medical sector, constituting nearly 53.7% of the sector’s market capitalization, reported earnings till Feb 2. Of these, 63.2% beat earnings estimates and 57.9% beat the same for revenues. Earnings increased 10% year over year on 12.1% higher revenues.
This scorecard reflects stability in the United States on the gradual reopening of the economy even amid the rise of the Omicron variant cases through the months of the fourth quarter. However, supply chain-related disruption along with hospital staffing shortages were prominent across many geographies. Also, many parts of the COVID-affected international market are still suffering due to lower cash flows and difficult economic conditions.
Overall, fourth-quarter earnings for the Medical sector are expected to rise 18.4% on a 12.8% sales increase. This compares with Q3’s reported earnings growth of 29.7% and revenue growth of 15.7%.
Medical Device Quarterly Synopsys
The dynamic nature of the COVID-19 crisis is fast transforming the medical products industry’s landscape. Integral to the broader Medical sector, Medical Device or Zacks-defined Medical Products companies’ collective business growth improved significantly in Q4, driven by the gradual lifting of restrictions. But the Q4 reporting cycle so far has shown a steep sequential decline in terms of the legacy base business of the companies due to the emergence of the new Omicron variant of COVID-19, which has once again put the non-COVID medical procedures on the back foot.
On the other hand, with the increase in the number of cases, testing, vaccine and therapeutic makers witnessed huge market adoption of their COVID-related healthcare support products and services in Q4. MedTech companies like Bio-Rad (BIO - Free Report) , DexCom (DXCM - Free Report) and LabCorp (LH - Free Report) are likely to have been impacted from these factors in Q4.
More specifically, the fourth-quarter results of the medical product stocks so far have shown temporary retraction of the base business compared to the third quarter. At the same time, diagnostic testing stocks, picked up momentum in Q4, in line with industry trends.
The Zacks Medical Product sector currently carries a Zacks Sector Rank in the bottom 40% (152 of 254 industries).
Let’s take a sneak peek into how the aforementioned MedTech stocks are poised prior to their fourth-quarter earnings on Feb 10.
Bio-Rad: The company has been witnessing substantial strength in end markets with a rebound in demand across both life science and diagnostic markets. However, we remain wary about the persistent supply-chain challenges, particularly in terms of the supply and cost of plastic raw materials, electronic components as well as rising logistics costs that have been limiting Bio-Rad’s ability to meet customer demand. Bio-Rad’s Life Science segment has been registering robust revenue growth since the past few quarters. We expect this growth momentum to have continued in the fourth quarter on the back of sustained growth in the company’s Polymerase Chain Reaction (PCR), Droplet Digital PCR (dPCR) and Process Media businesses. (Read more: Bio-Rad to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for Bio-Rad’s fourth-quarter earnings per share is pegged at $2.87. Revenues are expected to be $737.1 million.
Bio-Rad does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — which increases the odds of an earnings beat.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BioRad Laboratories, Inc. Price and EPS Surprise
BioRad Laboratories, Inc. price-eps-surprise | BioRad Laboratories, Inc. Quote
DexCom: DexCom’s fourth-quarter top line is likely to have witnessed an increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (“CGM”). In fact, per the preliminary announcement, DexCom — the leader in CGM — anticipates fourth-quarter 2021 revenues to be around $698 million (up 23% from the year-ago quarter). (Read more: DexCom to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for the fourth quarter of fiscal 2022 is pegged at earnings per share of 86 cents. Revenues are expected to be $696.7 million.
DexCom has an Earnings ESP of +1.13% and a Zacks Rank #4 (Sell).
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
LabCorp: Over the past few months, LabCorp has been witnessing continued sales rebound in the base business for both Diagnostics and Drug Development. Just like the previously-reported quarter, LabCorp’s fourth-quarter base-business performance is expected to have registered a recovery despite a spike in COVID-19 cases as patients and providers continue to return to routine healthcare checkups and pharmaceutical clients resume their important research activities. (Read more: LabCorp to Report Q4 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for the fourth quarter is pegged at earnings per share of $5.90. Revenues are expected to be $3.94 billion.
LabCorp has an Earnings ESP of +9.94% and a Zacks Rank #3.
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote