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Medical Products' Earnings Roster for May 13: SDC, STE & More

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Looking at the earnings picture so far, it is quite clear that the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification) has shown more resilience compared to others amid the coronavirus-led economic rout.

While many players within this sector suffered due to production and supply disruptions, several benefited from strong business generation from emergency medical procedures that were unavoidable even amid the pandemic. Also, this sector’s new COVID-19-related healthcare offerings showed huge adoption, thus contributing to Q1 results.

Medical is one of the six among the 16 major Zacks sectors to have reports year-over-year earnings growth so far this reporting cycle. Going by the latest Earnings Preview, this sector’s scorecard so far reflects 8.4% earnings growth on 10.2% upside in revenues. Overall, earnings are projected to be up 9% on 8.8% revenue growth.

Integral to the broader Medical sector, Medical Products companies’ business growth was significantly dampened due to the pandemic and associated stay-at-home restrictions. However, most of them have partially mitigated these downsides, riding on huge market adoption of their COVID-19-related healthcare-support products and services and increased demand for non-elective procedures.

The Zacks Medical Product sector currently carries a Zacks Sector Rank in the top 19% (48 of 256 industries).

Let’s take a look at four Medical Product market leaders scheduled to announce results on May 13.

SmileDirectClub, Inc. : This teledentistry company, in response to the COVID-19 pandemic, opened a 3D printing facility completely dedicated to producing much needed medical supplies. In order to combat this crisis, the company collaborated with medical supply companies and health organizations to produce things like medical face shields and respirator valves. This, in turn, is likely to have positively impacted its performance in the first quarter.

The Zacks Consensus Estimate for the first quarter is pegged at loss per share of 22 cents.  Revenues are expected to be $218.1 million.

(Read more: What’s in the Cards for SmileDirectClub’s Q1 Earnings?)

SmileDirectClub 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 -3.60%.

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.

SmileDirectClub Inc Price and EPS Surprise

SmileDirectClub Inc Price and EPS Surprise

SmileDirectClub Inc price-eps-surprise | SmileDirectClub Inc Quote

STERIS plc, (STE - Free Report) : The company’s fourth-quarter fiscal 2020 results might  reflect the impact of deferred elective procedures in the wake of the pandemic. However, the company’s Infection Prevention and Sterilization wing (that offers contract sterilization and laboratory services for medical device and pharmaceutical customers and others) is expected to have benefited from the situation.

STERIS has a Zacks Rank #3 and an Earnings ESP of -1.91%.

STERIS plc Price and EPS Surprise

STERIS plc Price and EPS Surprise

STERIS plc price-eps-surprise | STERIS plc Quote

Schrodinger Inc (SDGR - Free Report) : This company offers computational platform to accelerate drug discovery and materials design deployed by biopharmaceutical and industrial companies, academic institutions and government laboratories worldwide. Under the pandemic situation, when all major biopharmaceutical companies have been engaged in providing COVID-19-led health support, this company might have realized greater demand for its computational platform.

Schrodinger has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%.

Schrodinger Inc Price and EPS Surprise

Schrodinger Inc Price and EPS Surprise

Schrodinger Inc price-eps-surprise | Schrodinger Inc Quote

1Life Healthcare Inc : This is a membership-based primary care platform offering seamless digital health and inviting in-office care, convenient to where people work, shop, live and click. Amid the pandemic situation, through the last month of the first quarter, the company took several measures for healthcare support that include bringing its modernized, membership-based primary care model to facilitate access and coordinated care across primary care and specialty care services. Further, the company expanded its virtual care offerings and COVID-19 testing services nationwide. This might have contributed to the company’s first-quarter performance.

1Life Healthcare has a Zacks Rank #2 and an Earnings ESP of 0.00%.

1Life Healthcare Inc Price and EPS Surprise

1Life Healthcare Inc Price and EPS Surprise

1Life Healthcare Inc price-eps-surprise | 1Life Healthcare Inc Quote

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