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Medical Instrument Stocks' Earnings on Feb 1: EW, HOLX, BABY
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Already more than one-third of the S&P 500 members (170 companies making up for 19.2% of the total market cap) have reported their Oct–Dec 2016 quarter’s earnings results. According to the latest Earnings Preview report, the scorecard so far has portrayed an improvement. With a significant number of earnings reports yet to be released, this week is going to prove crucial for the Q4 cycle. Till Jan 27, total earnings for these S&P 500 members have gone up 6% on a 3.1% increase in revenues.
The medical sector, which is one of the 16 broader Zacks sectors, is no exception to the trend. So far, 25.9% members from this sector have come up with their quarterly earnings releases with earnings and revenue beats standing at impressive levels of 71.4% and 50%, respectively. With an increasing number of companies lining up for their earnings announcements, the aggregate growth pace of this sector is expected to pick up steam. The sector is likely to see 2.9% earnings growth on 5.7% higher revenues in the quarter.
What Awaits the Med-Instruments Sector?
The Zacks categorized Medical - Instruments industry is a vital part of the broader Medical sector which holds a lot of promise at this moment. According to a survey by KPMG, medical device companies plan to spend more than 6% of revenues on R&D/innovation, which is way above the R&D investments made by other manufacturing companies. The innovation and breakthroughs can come in the form of new products or surgical techniques or cost-effective products targeting the emerging markets.
Let’s take a look at the major Medical Instrument stocks slated to release their earnings results on Feb 1:
Edwards Lifesciences Corporation (EW - Free Report) : Headquartered in Irvine, CA, this major medical device company deals in products and technologies aimed at treating advanced cardiovascular diseases, especially structural heart disease in critically ill patients. The company is expected to report fourth-quarter and full-year 2016 results after market close. Last quarter, earnings were in line with the Zacks Consensus Estimate for the company. In the trailing four quarters, the company posted an average positive earnings surprise of 5.73%.
We are looking forward to a gradual expansion in the company’s SAPIEN 3 that received an intermediate risk indication lately based on revised clinical guidelines and updated reimbursement policies in Europe. However, we are concerned about management’s anticipation of weak performance by the surgical heart valve segment in the fourth quarter as well.
Hologic Inc. (HOLX - Free Report) : Based in Bedford, MA, Hologic is scheduled to report first-quarter fiscal 2017 results, after the closing bell. Last quarter, the company posted a positive earnings surprise of 4.00%. Notably, Hologic’s earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 6.05%.
Hologic has been involved in a series of developmental strategies. The company entered into a global collaboration deal with Korea-based Seegene to develop high multiplex real-time reagents for its Panther Fusion system that is currently being developed. Management has also received several regulatory approvals for its Aptima Quant assay series to complement women’s health diagnostics.
Natus Medical Incorporated : The company is a Pleasanton, CA-based manufacturer of medical devices and software and a service provider for the newborn care, neurology, sleep, hearing and balance markets. Natus Medical aims to improve outcomes and patient care in target markets through innovative screening, diagnostic and treatment solutions.
The company is slated to release its fourth-quarter 2016 report, before the market opens. Last quarter, the company posted a positive earnings surprise of 8.33%. Notably, Natus Medical’s earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 10.22%.
Natus Medical has Zacks Rank #2 (Buy) which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Medical Instrument Stocks' Earnings on Feb 1: EW, HOLX, BABY
Already more than one-third of the S&P 500 members (170 companies making up for 19.2% of the total market cap) have reported their Oct–Dec 2016 quarter’s earnings results. According to the latest Earnings Preview report, the scorecard so far has portrayed an improvement. With a significant number of earnings reports yet to be released, this week is going to prove crucial for the Q4 cycle. Till Jan 27, total earnings for these S&P 500 members have gone up 6% on a 3.1% increase in revenues.
The medical sector, which is one of the 16 broader Zacks sectors, is no exception to the trend. So far, 25.9% members from this sector have come up with their quarterly earnings releases with earnings and revenue beats standing at impressive levels of 71.4% and 50%, respectively. With an increasing number of companies lining up for their earnings announcements, the aggregate growth pace of this sector is expected to pick up steam. The sector is likely to see 2.9% earnings growth on 5.7% higher revenues in the quarter.
What Awaits the Med-Instruments Sector?
The Zacks categorized Medical - Instruments industry is a vital part of the broader Medical sector which holds a lot of promise at this moment. According to a survey by KPMG, medical device companies plan to spend more than 6% of revenues on R&D/innovation, which is way above the R&D investments made by other manufacturing companies. The innovation and breakthroughs can come in the form of new products or surgical techniques or cost-effective products targeting the emerging markets.
Let’s take a look at the major Medical Instrument stocks slated to release their earnings results on Feb 1:
Edwards Lifesciences Corporation (EW - Free Report) : Headquartered in Irvine, CA, this major medical device company deals in products and technologies aimed at treating advanced cardiovascular diseases, especially structural heart disease in critically ill patients. The company is expected to report fourth-quarter and full-year 2016 results after market close. Last quarter, earnings were in line with the Zacks Consensus Estimate for the company. In the trailing four quarters, the company posted an average positive earnings surprise of 5.73%.
We are looking forward to a gradual expansion in the company’s SAPIEN 3 that received an intermediate risk indication lately based on revised clinical guidelines and updated reimbursement policies in Europe. However, we are concerned about management’s anticipation of weak performance by the surgical heart valve segment in the fourth quarter as well.
We cannot conclusively predict a beat for Edwards Lifesciences as well, as it currently carries a Zacks Rank #3 and a negative Earnings ESP of -1.39% (read more: Edward Lifesciences: What's in Store in Q4 Earnings?)
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation Price and EPS Surprise | Edwards Lifesciences Corporation Quote
Hologic Inc. (HOLX - Free Report) : Based in Bedford, MA, Hologic is scheduled to report first-quarter fiscal 2017 results, after the closing bell. Last quarter, the company posted a positive earnings surprise of 4.00%. Notably, Hologic’s earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 6.05%.
Hologic has been involved in a series of developmental strategies. The company entered into a global collaboration deal with Korea-based Seegene to develop high multiplex real-time reagents for its Panther Fusion system that is currently being developed. Management has also received several regulatory approvals for its Aptima Quant assay series to complement women’s health diagnostics.
Hologic has a Zacks Rank #1 (Strong Buy) which increases the predictive power of ESP. You can see the complete list of today’s Zacks #1 Rank stocks here. However, a 0.00% ESP makes surprise prediction difficult (read more: Is a Surprise in Store for Hologic in Q1 Earnings?)
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. Price and EPS Surprise | Hologic, Inc. Quote
Natus Medical Incorporated : The company is a Pleasanton, CA-based manufacturer of medical devices and software and a service provider for the newborn care, neurology, sleep, hearing and balance markets. Natus Medical aims to improve outcomes and patient care in target markets through innovative screening, diagnostic and treatment solutions.
The company is slated to release its fourth-quarter 2016 report, before the market opens. Last quarter, the company posted a positive earnings surprise of 8.33%. Notably, Natus Medical’s earnings surpassed the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 10.22%.
Natus Medical has Zacks Rank #2 (Buy) which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Natus Medical Incorporated Price and EPS Surprise
Natus Medical Incorporated Price and EPS Surprise | Natus Medical Incorporated Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>