With 454 S&P members already having released their results, the second-quarter earnings season is wrapping up fast. According to our latest
Earnings Outlook report, the scorecard so far has portrayed a much better picture compared to the last two reported quarters. With a few earnings announcements yet to be made, this season is expected to demonstrate an improving trend. Nonetheless, it is still into the negative territory which will make it the fifth straight quarter of earnings decline for the S&P 500 index.
Encouragingly, results from 95.4% of the Medical sector’s market cap in the S&P 500 index are already out, among which 88% exceeded EPS estimates while 82% surpassed revenue estimates. Earnings growth rate stood at 5% year over year on account of a 9.2% rise in revenues. For the rest of the season, earnings are anticipated to grow 4.7%, driven by impressive top-line growth expectation of 7.7% in this sector.
What’s in Store for the Med-Product Space?
Medical Product, a specialized sub-sector within the broader Medical sector, is showing a lot of potential as well. This is impressive given the severe economic instability, fierce competition, and increasing cost related hazards leading to regulatory complexities. The success of the Medical Product industry comes on the back of successful execution of some top strategic priorities, which include R&D and product development; strategic M&A and alliances along with a focus on emerging market expansion.
Let’s take a look at the Medical Product stocks slated to release their quarterly reports soon:
Imprimis Pharmaceuticals, Inc. IMMY
Headquartered in San Diego, CA, Imprimis is a pharmaceutical company that works on making drugs affordable through its Branded Compounding business model. The company currently offers high quality low-cost custom compounded drugs in 50 states of the U.S.
The company is scheduled to report second-quarter 2016 numbers on Aug 15. However, our proven model does not conclusively show that Imprimis is likely to beat earnings this quarter as it carries a Zacks Rank #3 (Hold) and has an
Earnings ESP of 0.00%.
We note that,, while a Zacks Rank #1 (Strong Buy), 2 (Buy) or #3 increases the predictive power of the ESP, a positive Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.
OmniComm Systems Inc. OMCM
This is leading strategic software solutions provider to the life sciences industry, primarily in the field of pharmaceutical, biotechnology, contract research organizations, diagnostic and device firms along with academic medical centers. The company is expected to report its second-quarter 2016 financial numbers on Aug 12.
While a favorable Zacks Rank #3 increases the predictive power of the ESP but an Earnings ESP of 0.00% makes a surprise prediction difficult. However, the company’s trailing 12-month average surprise came in at a positive 50%.
Cellectar Biosciences, Inc. ( CLRB Quick Quote CLRB - Free Report)
This company develops phospholipid drug conjugates (PDCs) designed to provide cancer targeted delivery of diverse oncologic payloads to a broad range of cancers and cancer stem cells. Cellectar's PDC Delivery Platform is based on the company's proprietary phospholipid ether analogs. The stock is slated to release its second-quarter 2016 financial numbers on Aug 15. This company too carries a Zacks Rank #3 along with an Earnings ESP of 0.00% making the surprise prediction difficult.
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