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The Zacks Analyst Blog Highlights Boston Scientific, Thermo Fisher Scientific, Align Technology and Edwards Lifesciences
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For Immediate Release
Chicago, IL – July 24, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boston Scientific Corp. (BSX - Free Report) , Thermo Fisher Scientific (TMO - Free Report) , Align Technology (ALGN - Free Report) and Edwards Lifesciences (EW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can These 4 MedTech Stocks Hit Their Targets This Earnings Season?
The second-quarter 2024 earnings season has just kicked off, with several MedTech bigwigs gearing up to release their results this week. Per the latest Earnings Preview, quarterly results of the broader Medical sector are likely to improve year over year, backed by strong product revenues on growing demand across all industries, offsetting the shortcomings generated from worldwide geopolitical issues and healthcare labor shortages.
Going by the broader Medical sector's scorecard, 5.1% of the companies in the Medical sector, constituting 18.4% of the sector's market capitalization, reported earnings till Jul 17. Earnings improved 1.5% year over year on 1.7% higher revenues. Each of these index members beat earnings and revenues.
Overall, second-quarter earnings of the Medical sector are expected to improve 18.4% on 7.2% revenue growth. This compares with the first-quarter earnings decline of 24% on revenue growth of 6.8%.
Some major industry players like Boston Scientific Corp., Thermo Fisher Scientific, Align Technology and Edwards Lifesciences are set to report results tomorrow.
Factors Likely to Influence MedTech Stocks' Results
Replicating the broader market trend, MedTech or the Zacks-defined Medical Products companies' collective business growth in the second quarter is likely to have stabilized. With the pandemic-related crisis gone, the industry has been experiencing an increasing rate of hospitalization, leading to growing demand for a broad array of medical devices. Further, the rapid adoption of generative Artificial Intelligence and digital therapies is expected to have generated a significant revenue stream in the second quarter.
Also, for several quarters, diagnostic testing companies have been witnessing a severe year-over-year decline in testing demand. Although, this time, too, we expect to see another quarter of year-over-year decline in diagnostics revenues, the magnitude of this decline may have reduced because diagnostic revenues were already soft in the year-ago period (in May 2023 WHO declared an end to COVID-19 as a public health emergency).
Macro trends that have set the stage for even more innovation and investment in this space are an aging population, growing healthcare awareness and increasing access to better health options. Favorable impacts from these are expected to be seen in the second-quarter results.
Yet, the industry continues to be in a difficult position due to an uncertain geopolitical environment and supply chain bottlenecks that result in high costs for labor and raw materials, as well as freight and a shortage of healthcare workers.
MedTech Stocks to Watch
Boston Scientific: With U.S. hospital visits being on the rise through the second-quarter months of 2024, Boston Scientific, with its innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, looks well-positioned to report decent sales results for this period.
However, the rate of growth is expected to have remained sluggish amid a challenging supply environment in limited geographies. Further, the business is expected to have faced the hurdle of surging labor and raw material costs, as well as healthcare staffing shortages, which might have weighed on the bottom line in the second quarter.
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $4.02 billion, an 11.7% expected rise year over year.
The consensus mark for adjusted earnings stands at 58 cents per share, implying a 9.4% improvement from the year-ago quarter's reported figure.
During the second quarter, the company's shares rose 13.1% against the industry's 3.3% growth.
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case, as you can see below.
BSX has an Earnings ESP of -1.72% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Thermo Fisher: Within the Analytical Instruments segment, the company is expected to have generated strong sales on the back of its electron microscopy business' growth. However, within the Life-Science Solutions segment, the company is expected to have experienced a decline due to the runoff of pandemic-related revenues and lower levels of activity in the bioproduction business compared to the year-ago quarter.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $10.51 billion, suggesting a 1.6% decline from the prior-year quarter's reported figure. The consensus mark for earnings is pegged at $5.13 per share, indicating a marginal 0.4% decline from the year-ago quarter's reported numbers.
During the second quarter, the stock declined 4.2% compared with the industry's 1.6% drop.
TMO has an Earnings ESP of -0.43% and carries a Zacks Rank #3.
Align Technology: Similar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and international doctors. It is also expected to have registered continued growth from Invisalign touch-up cases. In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers. Also, the growing adoption of ALGN's monthly subscription-based Invisalign Doctor Subscription Program, which is currently available in the United States, Canada, Iberia, and the Nordics, might have contributed to the top line.
The Zacks Consensus Estimate for Align Technology's revenues is pegged at $1.04 billion, suggesting growth of 3.8% from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pinned at $2.33 per share, indicating a 4.9% improvement from the year-ago recorded actuals.
In the second quarter, shares of the company dropped 24.5% against the industry's 5.8% growth.
Align Technology has an Earnings ESP of -1.34% and carries a Zacks Rank #3.
Edwards Lifesciences: Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. A favorable hospitalization trend, strong global adoption of transcatheter heart valves and improved procedural volume are expected to have driven growth in the second quarter.
Within the Transcatheter Aortic Valve Replacement arm, Edwards Lifesciences is likely to have witnessed continued growth in procedures across the United States and worldwide. The continued strong demand for the company's SAPIEN platform is expected to have acted as the primary growth factor. SAPIEN currently occupies the majority of the company's sales within the United States.
The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $1.65 billion, suggesting a rise of 8.1% from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter 2024 net earnings of 70 cents per share indicates a 6.1% improvement from the year-ago reported figure.
During the second quarter, the stock declined 2% compared with the industry's 1.6% drop.
EW has an Earnings ESP of +0.58% and carries a Zacks Rank #4 (Sell).
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Boston Scientific, Thermo Fisher Scientific, Align Technology and Edwards Lifesciences
For Immediate Release
Chicago, IL – July 24, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boston Scientific Corp. (BSX - Free Report) , Thermo Fisher Scientific (TMO - Free Report) , Align Technology (ALGN - Free Report) and Edwards Lifesciences (EW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can These 4 MedTech Stocks Hit Their Targets This Earnings Season?
The second-quarter 2024 earnings season has just kicked off, with several MedTech bigwigs gearing up to release their results this week. Per the latest Earnings Preview, quarterly results of the broader Medical sector are likely to improve year over year, backed by strong product revenues on growing demand across all industries, offsetting the shortcomings generated from worldwide geopolitical issues and healthcare labor shortages.
Going by the broader Medical sector's scorecard, 5.1% of the companies in the Medical sector, constituting 18.4% of the sector's market capitalization, reported earnings till Jul 17. Earnings improved 1.5% year over year on 1.7% higher revenues. Each of these index members beat earnings and revenues.
Overall, second-quarter earnings of the Medical sector are expected to improve 18.4% on 7.2% revenue growth. This compares with the first-quarter earnings decline of 24% on revenue growth of 6.8%.
Some major industry players like Boston Scientific Corp., Thermo Fisher Scientific, Align Technology and Edwards Lifesciences are set to report results tomorrow.
Factors Likely to Influence MedTech Stocks' Results
Replicating the broader market trend, MedTech or the Zacks-defined Medical Products companies' collective business growth in the second quarter is likely to have stabilized. With the pandemic-related crisis gone, the industry has been experiencing an increasing rate of hospitalization, leading to growing demand for a broad array of medical devices. Further, the rapid adoption of generative Artificial Intelligence and digital therapies is expected to have generated a significant revenue stream in the second quarter.
Also, for several quarters, diagnostic testing companies have been witnessing a severe year-over-year decline in testing demand. Although, this time, too, we expect to see another quarter of year-over-year decline in diagnostics revenues, the magnitude of this decline may have reduced because diagnostic revenues were already soft in the year-ago period (in May 2023 WHO declared an end to COVID-19 as a public health emergency).
Macro trends that have set the stage for even more innovation and investment in this space are an aging population, growing healthcare awareness and increasing access to better health options. Favorable impacts from these are expected to be seen in the second-quarter results.
Yet, the industry continues to be in a difficult position due to an uncertain geopolitical environment and supply chain bottlenecks that result in high costs for labor and raw materials, as well as freight and a shortage of healthcare workers.
MedTech Stocks to Watch
Boston Scientific: With U.S. hospital visits being on the rise through the second-quarter months of 2024, Boston Scientific, with its innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, looks well-positioned to report decent sales results for this period.
However, the rate of growth is expected to have remained sluggish amid a challenging supply environment in limited geographies. Further, the business is expected to have faced the hurdle of surging labor and raw material costs, as well as healthcare staffing shortages, which might have weighed on the bottom line in the second quarter.
(Read more: Will WATCHMAN Sales Aid Boston Scientific's Q2 Earnings?)
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $4.02 billion, an 11.7% expected rise year over year.
The consensus mark for adjusted earnings stands at 58 cents per share, implying a 9.4% improvement from the year-ago quarter's reported figure.
During the second quarter, the company's shares rose 13.1% against the industry's 3.3% growth.
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case, as you can see below.
BSX has an Earnings ESP of -1.72% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Thermo Fisher: Within the Analytical Instruments segment, the company is expected to have generated strong sales on the back of its electron microscopy business' growth. However, within the Life-Science Solutions segment, the company is expected to have experienced a decline due to the runoff of pandemic-related revenues and lower levels of activity in the bioproduction business compared to the year-ago quarter.
(Read more: Here's How Thermo Fisher is Placed Ahead of Q2 Earnings)
The Zacks Consensus Estimate for second-quarter revenues is pegged at $10.51 billion, suggesting a 1.6% decline from the prior-year quarter's reported figure. The consensus mark for earnings is pegged at $5.13 per share, indicating a marginal 0.4% decline from the year-ago quarter's reported numbers.
During the second quarter, the stock declined 4.2% compared with the industry's 1.6% drop.
TMO has an Earnings ESP of -0.43% and carries a Zacks Rank #3.
Align Technology: Similar to the last reported quarter, Align Technology is likely to have witnessed strength in Clear Aligner volumes for teens and international doctors. It is also expected to have registered continued growth from Invisalign touch-up cases. In the to-be-reported quarter, non-case revenues might have witnessed a year-over-year increase owing to the sustained growth of Vivera retainers. Also, the growing adoption of ALGN's monthly subscription-based Invisalign Doctor Subscription Program, which is currently available in the United States, Canada, Iberia, and the Nordics, might have contributed to the top line.
(Read more: Will Clear Aligner Sales Drive Align Technology's Q2 Earnings?)
The Zacks Consensus Estimate for Align Technology's revenues is pegged at $1.04 billion, suggesting growth of 3.8% from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pinned at $2.33 per share, indicating a 4.9% improvement from the year-ago recorded actuals.
In the second quarter, shares of the company dropped 24.5% against the industry's 5.8% growth.
Align Technology has an Earnings ESP of -1.34% and carries a Zacks Rank #3.
Edwards Lifesciences: Similar to the last reported quarter, Edwards Lifesciences is likely to have gained from its patient-focused innovation strategy. A favorable hospitalization trend, strong global adoption of transcatheter heart valves and improved procedural volume are expected to have driven growth in the second quarter.
Within the Transcatheter Aortic Valve Replacement arm, Edwards Lifesciences is likely to have witnessed continued growth in procedures across the United States and worldwide. The continued strong demand for the company's SAPIEN platform is expected to have acted as the primary growth factor. SAPIEN currently occupies the majority of the company's sales within the United States.
(Read more: Is a Beat Likely for Edwards Lifesciences in Q2 Earnings?)
The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $1.65 billion, suggesting a rise of 8.1% from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter 2024 net earnings of 70 cents per share indicates a 6.1% improvement from the year-ago reported figure.
During the second quarter, the stock declined 2% compared with the industry's 1.6% drop.
EW has an Earnings ESP of +0.58% and carries a Zacks Rank #4 (Sell).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.