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What's in the Offing for Brainsway (BWAY) in Q4 Earnings?

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Brainsway (BWAY - Free Report) is slated to report its fourth-quarter 2023 results on Mar 6 before market open.

The company posted a diluted net loss of 1 cent per share in the last reported quarter, which was narrower than the Zacks Consensus Estimate of a loss of 7 cents per share. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and matched in one quarter, the average beat being 49.49%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

Similar to the last reported quarter, we assume Brainsway to have remained largely resilient to the impacts of the persistent geopolitical turmoil in Israel. The company may have secured sufficient inventory as stock in hand to continue its supply of devices on an uninterrupted basis and may have also kept a contingency plan in place for any alternative supplier channel in the future. These may have helped BWAY maintain the strong ongoing momentum throughout its entire business.

In the fourth quarter of 2023, Brainsway is likely to have achieved its targeted breakeven operating income and positive adjusted EBITDA due to the strong execution of cost optimization measures.  The company may have continued to optimize its existing commercial process, emphasizing more on larger institutional and enterprise customers that are playing an increasingly important role within the industry. We expect this to have been favorably reflected in its top line as well.

Further, BWAY may have progressed with its strategy to add Deep TMS (Transcranial Magnetic Stimulation) technology to the expanding large mental health-focused TMS group or networks. In December 2023, Brainsway expanded its collaboration with a growing mental health treatment provider based in the Western region of the United States. After a series of successive orders, the latest partnership will bring the provider’s installed base to a total of seven Deep TMS systems, with plans for additional expansion in the future.

In addition, the company has expanded the availability of its Deep TMS technology in South Korea, which is set to increase its installed base to more than 20 systems in the country. All these developments are likely to have been positively reflected on Brainsway’s international business, thereby benefitting its top line in the quarter under review.

We also expect the company to have continued to witness a higher demand for OCD treatment indications. Brainsway may have continued to capture significant market share both in the United States and internationally, capitalizing on the robust market dynamics for the TMS. We assume this to have favorably impacted its top line in the fourth quarter of 2023.

Q4 Estimates

The Zacks Consensus Estimate for BWAY’s fourth-quarter 2023 revenues is pegged at $8.40 million. This suggests a 39.3% improvement from the year-ago reported figure.

The Zacks Consensus Estimate for its fourth-quarter 2023 loss of 3 cents per share is narrower than the year-ago loss of 12 cents per share.

What Our Model Suggests

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:

Earnings ESP: Brainsway 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 #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 in the upcoming quarters:

DaVita (DVA - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #1. The company is expected to release its first-quarter 2024 results on May 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita has a long-term expected earnings growth rate of 12.1%. DVA surpassed earnings in each of the trailing four quarters, the average being 35.57%.

RxSight (RXST - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #2. The company is expected to release first-quarter 2024 results on May 14.

RXST has an expected long-term earnings growth rate of 21% compared with the industry’s 15.5%. The company surpassed earnings in each of the trailing four quarters, the average being 19.64%.

ANI Pharmaceuticals (ANIP - Free Report) currently has an Earnings ESP of +10.73% and a Zacks Rank #2. The company is expected to release its first-quarter 2024 results on May 13.

ANIP has an estimated earnings growth rate of 16.5% for the next year compared with the S&P 500’s 9.9%. In the trailing four quarters, the company delivered an average earnings surprise of 109.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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