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Will New Products Drive TransEnterix's (TRXC) Q3 Earnings?

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TransEnterix, Inc. is scheduled to report third-quarter 2018 results on Nov 8, after the market closes.

In the last reported quarter, the company’s loss per share of 6 cents was in line with the Zacks Consensus Estimate. It witnessed negative surprises in two of the trailing four quarters, the average miss being 138.1%.

Let’s see, how things are shaping up prior to this announcement.

Factors at Play

TransEnterix is expected to make a strong top-line contribution in the third quarter from its several new product developments within the company’score Senhance Surgical System line. Among the resent developments, in the third quarter, the company gained an FDA approval for its additional 5 millimeter Senhance System instruments. This apart, it has received CE Mark approval for its Senhance Ultrasonic Instrument System. In this regard, the company has also filed a FDA 510(k) submission for its Senhance Ultrasonic Instrument System.

 

Earlier, the company secured an FDA 10-K clearance for expanded indications with regard to Senhance for including both laparoscopic inguinal hernia repair and laparoscopic gall bladder surgery. Per TransEntrix, both are high-volume procedures and hence have the potential to double the company’s addressable procedure market to more than three million procedures per year. These launches and expanded indications for use, are expected to significantly contribute to the company’s revenues per procedure in the third quarter.

Of late, TransEnterix made a notable progress, internationally. In the last reported quarter, it sold three systems in EMEA, each of which was done by one of its distribution partners to an end-user hospital. Based on the success of the company’s distribution partners in EMEA, TransEnterix is currently targeting internal spending on distribution support network, which includes training, regulatory, language continuity, service and sales support. This should further aid the company’s third-quarter performance.

Within Asia Pacific, the company has so far achieved meaningful growth in Japan. The island country is the second largest robotics market in the world after the United States and TransEnterix consistently sees a significant inbound interest in the region.

Here’s What Our Quantitative Model Predicts

Our proven Zacks model clearly indicates that a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TransEnterix has a Zacks Rank #4 (Sell), which lowers the predictive power of ESP. Further, its Earnings ESP of 0.00% in the combination makes surprise prediction difficult.  Thus, this combination fails to forecast a positive surprise.

Stocks Worth a Look

Following are a few medical stocks worth considering with the right combination of elements to beat on earnings in the upcoming quarterly results:

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Humana Inc. (HUM - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #2.

Natera, Inc. (NTRA - Free Report) has an Earnings ESP of +6.01% and a Zacks Rank of 2.

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