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Dental Stocks Releasing Earnings on Aug 4: BDX, HSIC, VWR

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With more than 317 S&P 500 members having already released their quarterly numbers, the Q2 reporting cycle is well past its mid-way.  As per latest Earnings Preview report, a modest improvement has been observed lately in the earnings scorecard, driven by a gradual contraction in the expected decline for the index members that are yet to report their numbers.

Nevertheless this improving trend was not adequate to dispel the overall dreary performance of the earnings season, as Q2 is still on track to be the fifth straight quarter of earnings decline for the S&P 500 index. Encouragingly, Medical is among the few out of the 16 broader Zacks sectors that have exceeded analysts’ expectations from the very beginning of the second-quarter earnings season.

Currently, we have (as of Jul 29) second-quarter results from 63.5% of Medical companies that collectively account for 71.9% of Medical sector’s market capitalization in the S&P 500 index. Total earnings for these companies are up 5.4% from the same period last year owing to 10.5% higher revenues. For the remainder of Q2, earnings for Medical companies are expected to rise 3.4% on the back of top-line growth expectation of 7.7%.

What’s in Store for Dental Stocks?

Dentistry, a niche industry within the broader Medical sector, holds a lot of potential at this moment. Rapid innovation has always been a strong suit of this industry, leading to breakthrough dental products. Besides, mergers between major players in the broader Medical space have paved the way for the formation of large corporations. These newly established companies enjoy huge shares of the broader market and have the capacity to control and influence the market, virtually turning it into an oligopoly.  A classic example of such a deal is the recently closed merger between Sirona Dental and Dentsply. To add to this, the rapid advancement in 3D printing technology has taken the dentistry industry to its next level by providing next-generation, customized dental products that were never available before. This industry is largely driven by consumer spending; so conservative healthcare policies tend to impact it less than the other subcategories of the broader medical sector.

Let’s take a look at the major Dental stocks slated to release their quarterly reports on Aug 4:

Becton, Dickinson and Company (BDX - Free Report) : This global medical technology company is scheduled to report its third-quarter fiscal 2016 earnings on Aug 4, before the opening bell. Factors like strong demand for the company’s Pyxis ES platform and infusion pumps are expected to primarily drive growth in the third quarter. However, tough year-over-year comparisons remain a major threat to the company’s upcoming results.

Currently, Becton, Dickinson has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.20. On average, the company delivered a positive earnings surprise of 5.04% in the trailing four quarters.

(Read More: Becton, Dickinson Q3 Earnings: What's in the Cards?)

 

BECTON DICKINSO Price and EPS Surprise

BECTON DICKINSO Price and EPS Surprise | BECTON DICKINSO Quote

 

Henry Schein, Inc. (HSIC - Free Report) : This renowned healthcare products and services distributor is scheduled to report its second-quarter 2016 financial numbers on Aug 4, before the market opens. Management at Henry Schein is looking forward to further expansion in market share within the non-acute care space, on the back of its physician business’ merger with that of Cardinal Health, in the second quarter and beyond. On the flip side, the company expects high restructuring costs in the second quarter.

Currently, Henry Schein carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.62. On average, the company delivered a positive earnings surprise of 2.03% through the last four quarters.

 (Read More: Henry Schein Q2 Earnings: What's in the Cards?)

 

HENRY SCHEIN IN Price and EPS Surprise

HENRY SCHEIN IN Price and EPS Surprise | HENRY SCHEIN IN Quote

 

VWR Corporation : This company manufactures and markets aesthetic treatment systems for plastic surgeons, dermatologists, and other medical practitioners. It carries a Zacks Rank #4 (Sell) and is slated to release its second-quarter 2016 financial numbers on Aug 4, before the opening bell. VWR has an Earnings ESP of -2.38%. That is because the Most Accurate estimate stands at 41 cents, while the Zacks Consensus Estimate is pegged higher at 42 cents.

Last quarter, the company posted an earnings surprise of -2.38%. On average, the company delivered an earnings surprise of 0.00% through the last four quarters.

 

VWR CORP Price and EPS Surprise

VWR CORP Price and EPS Surprise | VWR CORP Quote

 

Stay tuned! Check back later for our earnings coverage of these stocks.

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