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Sharps Compliance (SMED) to Post Q3 Earnings: What to Expect?

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Sharps Compliance Corp. (SMED - Free Report) is slated to report third-quarter fiscal 2020 (ended March 2020) results on Apr 28, before market open.

The company beat earnings estimates in three of the last four quarters, while lagging estimate once. Earnings surprise was a negative 50%, on average. Notably, the company’s second-quarter fiscal 2020 earnings of 6 cents per share surpassed the Zacks Consensus Estimate of 3 cents.

In the past three months, the company’s shares surged 57.3% against the industry’s decline of 20.8%.




 

Let us delve deeper.

Key Factors & Estimates for Q3

Over the past few quarters, the company has been benefiting from solution offerings related to the management of hazardous, medical and pharmaceutical waste. The trend might get reflected in third-quarter fiscal 2020 results as well, especially in the event of the coronavirus outbreak. Also, a solid customer base as well as investments for enhancing distribution network and developing solutions might have supported its performance.

Among the solutions, the growing popularity of the unused medication business, especially that of MedSafe and TakeAway Medication Recovery System, might get reflected in the quarter’s top-line numbers. Also, the route-based business has expanded well over time and might have aided the company’s performance in the quarter.

The Zacks Consensus Estimate for revenues of the route-based business is pegged at $2.7 million, reflecting growth of 8.9% from the previous quarter’s reported figure. Further, the revenue estimate of $2.5 million for the unused medication business suggests sequential growth of 7.8%.
 
On the flip side, the revenue estimate for mailbacks solutions is pegged at $4.6 million, suggesting a 48.5% decline from the previous quarter’s reported number. The business might have suffered from volatility in flu-related orders, as was witnessed in the second quarter of fiscal 2020.

Also, the Zacks Consensus Estimate for Sharps Compliance’s revenues of $11 million suggests 22.2% growth from the year-ago quarter’s reported number and a 26.7% decline from the last reported quarter.

Additionally, the quarter’s results might have suffered from higher selling, general and administrative expenses. The Zack Consensus Estimate for the company’s fourth-quarter earnings per share is pegged at loss per share of 4 cents, indicating improvement from a loss of 7 cents per share reported in the year-ago quarter. Notably, the company reported earnings of 6 cents per share in the last reported quarter.
 
Earnings Whispers

Our proven model does not predict an earnings beat for Sharps Compliance this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Sharps Compliance has an Earnings ESP of 0.00%, with the Most Accurate Estimate and the Zacks Consensus Estimate pegged at a loss of 4 cents per share.

Sharps Compliance Corp Price, Consensus and EPS Surprise

 

Sharps Compliance Corp Price, Consensus and EPS Surprise

Sharps Compliance Corp price-consensus-eps-surprise-chart | Sharps Compliance Corp Quote

Zacks Rank: The company currently sports a Zacks Rank #1.

Stocks to Consider

Here are some companies in the Zacks Industrial Products sector that you may want to consider as according to our model these have the right combination of elements to post an earnings beat this quarter.

Ball Corporation (BLL - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Casella Waste Systems, Inc. (CWST - Free Report) presently has an Earnings ESP of +66.67% and a Zacks Rank #3.

Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #3 at present.

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