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Medical Products Stock Earnings on Apr 29: BSX, ALGN & More

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The Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification) space seems to have shown more resilience compared to others in the first quarter. This can be attributed to continued strong business generation from emergency medical procedures that were unavoidable even amid the pandemic. Also, this sector’s new COVID-19-related healthcare offerings have shown huge adoption, thus contributing to Q1 results.

Going by the latest Earnings Preview, this sector’s scorecard so far reflects 3% earnings growth on 5.3% upside in revenues from the year-ago period. Overall, earnings are expected to be up 3.1% on 8.1% revenue growth. Medical is expected to be one of the five among the 16 major Zacks sectors set to report year-over-year earnings growth.

However, the earnings projections indicate a significant sequential decline from the fourth-quarter 2019 scorecard, which reflected earnings growth of 7.9%. This is because, most of the medical companies are suffering due to the worldwide halt in manufacturing halt and supply chain disruption.

Integral to the broader Medical sector, Medical Products companies’ growth is expected to have been dampened due to the pandemic. However, most of them might have partially mitigated these downsides, riding on huge market adoption of their COVID-19-related healthcare-support products and services and non-elective procedures.

Meanwhile, the Zacks Medical Product sector currently carries a Zacks Sector Rank in the top 12% (31 of 256 industries).

Let’s take a look at four Medical Product market leaders scheduled to announce results on Apr 29.

Boston Scientific (BSX - Free Report) , which has a strong global base, is expected to have witnessed a notable reduction in product demand across its core business segments (due to the massive disruption in global supply chain and postponement of non-COVID 19 healthcare activities). However, we are once again optimistic about the Interventional Cardiology (IC) business, which is likely to have helped the company maintain impressive global growth in the first half of the first quarter, courtesy of an innovative portfolio and robust commercial teams across structural heart and coronary therapies.

The Zacks Consensus Estimate for first-quarter total revenues of $2.63 billion suggests growth of 5.6% from the prior-year reported number. The consensus mark for earnings of 34 cents per share implies 2.9% decline from the year-ago reported figure.

(Read more: Can IC and PI Arms Drive Boston Scientific Q1 Earnings?)

Boston Scientific doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — which increases the odds of an earnings beat . It has a Zacks Rank #3 and an Earnings ESP of -5.6%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology (ALGN - Free Report) is expected to have registered growth on consistent strength in Invisalign volumes in orthodontist and GP channels (including DSOs) as well as continued uptick in the number of teenage patient cases in the American markets in the first two months of the quarter. However,  postponement of non-emergency and elective procedures to focus on COVID-19 treatments later in the quarter is likely to have weighed on the company’s performance.

(Read more: Align Technology  to Report Q1 Earnings: What's in Store?)

Align Technology has a Zacks Rank #4 (Sell) and an Earnings ESP of +3.35%.

Align Technology, Inc. Price and EPS Surprise

Align Technology, Inc. Price and EPS Surprise

Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote

Laboratory Corporation of America Holdings (LH - Free Report) or LabCorp, which carries out tests on more than 3 million patient specimens per week and supports clinical trial activity in approximately 100 countries globally through its central laboratory business, is expected to have witnessed a significant fall in its quarterly revenues. However, its initiatives to support COVID-19 testing are believed to have contributed to the company’s first-quarter performance.

(Read more: Will LabCorp's Coronavirus Test Boost Q1 Earnings?)

LabCorp has a Zacks Rank #3 and an Earnings ESP of -16.4%.

Hologic, Inc. (HOLX - Free Report) : Hologic expects weaker-than-expected sales at Breast Health due to changing customer responses amid the COVID-19 outbreak. Additionally, sales of GYN Surgical and certain non COVID-19 Diagnostics products are expected to have been significantly dented in the second quarter of fiscal 2020 due to the deferral of elective procedures and physician office visits.

(Read More: Can Diagnostics Aid Hologic Q2 Sales Amid Coronavirus?)

Hologic has a Zacks Rank #4 and an Earnings ESP of 0.00%.

Hologic, Inc. Price and EPS Surprise

Hologic, Inc. Price and EPS Surprise

Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote

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