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Hanger (HNGR) to Report Q3 Earnings: What's in the Cards?

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Hanger Inc. (HNGR - Free Report) is scheduled to report its third-quarter 2019 results on Nov 7.

The Zacks Consensus Estimate for the company’s earnings per share is pegged at 23 cents, indicating an increase of 4.55% from the year-ago quarter reported figure. The consensus mark for revenues is pegged at $274.14 million, suggesting an increase of 4.26% from the year-ago quarter reported figure.

In the previous quarter, the company’s earnings and revenues beat estimates by 16.67% and 1.73%, respectively.

Factors to Consider

Earnings are likely to have gained from strong demand for Orthotic and Prosthetic (O&P) services across the board in the quarter under review. The company is likely to have witnessed revenue growth in the Patient Care segment on market share gains driven by its marketing initiatives and technology and revenue cycle enhancements.

The company’s Products & Services segment is likely to have benefited from its O&P distribution business on addition of new products to the portfolio catalog. Also, Hanger’s competency in supply chain management makes it a desired company for manufacturers who look out for logistics support.

The company has initiated planning and design for the implementation of new financial and supply chain systems. In connection with this project, the company has spent $1.5 million in the first six months of 2019 and is expected to spend a total of approximately $3.8 million for the full-year 2019. Therefore, the third quarter is likely to have incurred part of the remaining $2.3 million, which will increase corporate costs.

Earnings Surprise History

Hanger has an unimpressive earnings surprise history. The company surpassed the Zacks Consensus Estimate in only two of the last four quarters, delivering an average miss of 36.92%. This is depicted in the chart below:

Hanger Inc. Price and EPS Surprise

Here is what our quantitative model predicts:

Our proven model does not conclusively predict an earnings beat for Hanger this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank #3.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Urogen Pharma (URGN - Free Report) has an Earnings ESP of +5.8% and a Zacks Rank #3.

scPharmaceuticals, Inc. (SCPH - Free Report) has an Earnings ESP of +14.62% and a Zacks Rank #3.

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