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Medical Products' Earnings on Aug 10: PRGO, NVTR & BSGM
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After a series of dreary quarters, given the way the second quarter has turned out to be a recovering one, a change in trend no longer seems unrealistic. With 87% of the S&P members having already released results, the scorecard has so far exhibited a 4.1% year-over-year decline in second-quarter earnings on 0.9% lower revenues -- quite an improvement from the past couple of quarters.
This undoubtedly boosts our optimism and makes us believe that a change in loss trend is in the cards any time before 2017.
While the overall market is trying to get out of the doldrums prevailing through the past several quarters, Medical, one of the 16 broader Zacks sectors, has continued to be a standout performer for quite a long time. As per the latest Earnings Preview report, this quarter was no exception as well, with the latest scorecard showing earnings growth rate at an impressive level of 6.5% year over year on account of 9.9% rise in revenues. For the remainder of the season, earnings are anticipated to rise 4.4%, driven by an impressive top-line growth expectation of 7.7% in this sector.
What’s in Store for the Med-Product Space?
Medical Instrument, being an important component of the Medical sector, is anticipated follow the same earnings growth trajectory this earnings season. According to a survey by KPMG, the medical device companies that expect to spend more than 6% of revenue on R&D/innovation are rising and are fast outpacing the number of companies spending on R&Ds in other manufacturing industries. These innovations and breakthroughs can be in various forms – new products or surgical techniques or cost-effective products targeting the emerging markets.
Let’s take a look at the major medical product stocks slated to release their quarterly reports on Aug 10:
This worldwide provider of over-the-counter (OTC) consumer goods and pharmaceutical products is scheduled to report second-quarter 2016 financial numbers on Aug 10. We are on the side lines regarding the company’s poor 2016 guidance by reducing pricing expectations in the Rx Pharmaceuticals segment owing to industry and competitive pressure in the sector.
Our proven model as well, does not conclusively show that Perrigo is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as Perrigo currently carries a Zacks Rank #3 and has a negative Earnings ESP of 2.00%. However, we note that the company’s trailing 12-month earnings surprise is 1.44%.
This neuromodulation medical device company develops and markets neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets in Europe. The stock, which is scheduled to release its second-quarter 2016 financial numbers on Aug 10, currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. We note that the company’s earnings missed the Zacks Consensus Estimate in the last reported quarter by 37.25%.
This medical product company is a development stage medical device maker working on developing a technology platform to minimize noise and artifacts from cardiac recordings during electrophysiology studies and ablation.
The company is expected to report financial results on Aug 10. While an unfavorable Zacks Rank #4 decreases the predictive power of the ESP, an ESP of 0.00% also makes a surprise prediction uncertain.
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Medical Products' Earnings on Aug 10: PRGO, NVTR & BSGM
After a series of dreary quarters, given the way the second quarter has turned out to be a recovering one, a change in trend no longer seems unrealistic. With 87% of the S&P members having already released results, the scorecard has so far exhibited a 4.1% year-over-year decline in second-quarter earnings on 0.9% lower revenues -- quite an improvement from the past couple of quarters.
This undoubtedly boosts our optimism and makes us believe that a change in loss trend is in the cards any time before 2017.
While the overall market is trying to get out of the doldrums prevailing through the past several quarters, Medical, one of the 16 broader Zacks sectors, has continued to be a standout performer for quite a long time. As per the latest Earnings Preview report, this quarter was no exception as well, with the latest scorecard showing earnings growth rate at an impressive level of 6.5% year over year on account of 9.9% rise in revenues. For the remainder of the season, earnings are anticipated to rise 4.4%, driven by an impressive top-line growth expectation of 7.7% in this sector.
What’s in Store for the Med-Product Space?
Medical Instrument, being an important component of the Medical sector, is anticipated follow the same earnings growth trajectory this earnings season. According to a survey by KPMG, the medical device companies that expect to spend more than 6% of revenue on R&D/innovation are rising and are fast outpacing the number of companies spending on R&Ds in other manufacturing industries. These innovations and breakthroughs can be in various forms – new products or surgical techniques or cost-effective products targeting the emerging markets.
Let’s take a look at the major medical product stocks slated to release their quarterly reports on Aug 10:
Perrigo Company plc (PRGO - Free Report)
This worldwide provider of over-the-counter (OTC) consumer goods and pharmaceutical products is scheduled to report second-quarter 2016 financial numbers on Aug 10. We are on the side lines regarding the company’s poor 2016 guidance by reducing pricing expectations in the Rx Pharmaceuticals segment owing to industry and competitive pressure in the sector.
Our proven model as well, does not conclusively show that Perrigo is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as Perrigo currently carries a Zacks Rank #3 and has a negative Earnings ESP of 2.00%. However, we note that the company’s trailing 12-month earnings surprise is 1.44%.
(Read More: Perrigo Q2 Earnings: Stock Likely to Disappoint?)
PERRIGO CO PLC Price and EPS Surprise
PERRIGO CO PLC Price and EPS Surprise | PERRIGO CO PLC Quote
Nuvectra Corporation
This neuromodulation medical device company develops and markets neurostimulation technology platform for the treatment of various disorders in neuroscience and clinical markets in Europe. The stock, which is scheduled to release its second-quarter 2016 financial numbers on Aug 10, currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. We note that the company’s earnings missed the Zacks Consensus Estimate in the last reported quarter by 37.25%.
NUVECTRA CORP Price and EPS Surprise
NUVECTRA CORP Price and EPS Surprise | NUVECTRA CORP Quote
BioSig Technologies, Inc. (BSGM - Free Report)
This medical product company is a development stage medical device maker working on developing a technology platform to minimize noise and artifacts from cardiac recordings during electrophysiology studies and ablation.
The company is expected to report financial results on Aug 10. While an unfavorable Zacks Rank #4 decreases the predictive power of the ESP, an ESP of 0.00% also makes a surprise prediction uncertain.
BIOSIG TECHNLGS Price and EPS Surprise
BIOSIG TECHNLGS Price and EPS Surprise | BIOSIG TECHNLGS Quote
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