Healthcare Stocks' Aug 9 Earnings Roster: XON, PMC & More
Medical is one of the 10 sectors in the S&P 500 cohort that is expected to record growth in earnings in the second quarter. The sector is likely to post earnings growth of 4.4% on revenue improvement of 7.7%.
We note that 433 S&P companies have already reported their quarterly numbers, with 70.7% of them beating EPS estimates and 52.7% surpassing the top-line estimate.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for the S&P 500 companies are expected to be down 3.5% year over year on revenue decline of 0.4%.
Healthcare is an important component of the Medical sector and is expected follow the earnings growth trajectory in the quarter.
Here, we take a look at five healthcare stocks scheduled to report their quarterly figures on Aug 9:
Based in Germantown, MD, Intrexon Corporation XON is a leader in the synthetic biology field, which applies engineering principles to biological systems. The company is set to report second-quarter results, after the closing bell.
INTREXON CORP Price and EPS Surprise
INTREXON CORP Price and EPS Surprise | INTREXON CORP Quote
We believe that the company’s core area – synthetic biology – holds considerable promise. Moreover, partnerships with the likes of Merck KGaA and Fibrocell are likely to yield positive outcomes.
However, our proven model does not conclusively show that the company is likely to beat estimates, given the combination of a Zacks Rank #2 (Buy) and Earnings ESP of 0.00%. We note the Most Accurate estimate and Zacks Consensus Estimate for the company is pegged at a loss of 23 cents.
As per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat estimates. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
PharMerica Corporation PMC, an institutional pharmacy services provider, is dedicated toward providing quality service and innovative pharmacy solutions to institutional customers and patients in long-term care settings. The company is slated to report second-quarter numbers, before the opening bell.
PHARMERICA CORP Price and EPS Surprise
PHARMERICA CORP Price and EPS Surprise | PHARMERICA CORP Quote
We note that our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%.Notably, both the Most Accurate estimate and the Zacks Consensus Estimate stand at 47 cents.
We also note that PharMerica’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 20.19%.
Surgery Partners Inc SGRY is a healthcare services company in the U.S. The company's outpatient delivery model is focused on providing solutions for surgical and related ancillary care in support of patients and physicians.
SURGERY PARTNRS Price and EPS Surprise
SURGERY PARTNRS Price and EPS Surprise | SURGERY PARTNRS Quote
Notably, our model does not predict an earnings beat for the company, given the combination of a Zacks Rank #4 (Sell) and Earnings ESP of -35.71%. We note that the Most Accurate estimate for Surgery Partners stands at 9 cents while the Zacks Consensus Estimate is pegged at 14 cents.
Civitas Solutions Inc CIVI provides home and community-based health services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs in the U.S. The company is scheduled to report third-quarter earnings, after market close.
We believe that the company is poised to benefit from its Human Services and Post-Acute Specialty Rehabilitation Services.
CIVITAS SOLUTNS Price and EPS Surprise
CIVITAS SOLUTNS Price and EPS Surprise | CIVITAS SOLUTNS Quote
However, our model does not conclusively show that Civitas is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. We note that the Most Accurate estimate and the Zacks Consensus Estimate for Civitas stand at 19 cents.
We also remind investors that Civitas’ results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 1.85%.
Headquartered in Franklin, TN, Healthways Inc HWAY provides network-delivered solutions and Population Health management services that focus on improving individuals’ lifestyle, overall health and productivity, thereby helping them cut down on health-related costs.
HEALTHWAYS INC Price and EPS Surprise
HEALTHWAYS INC Price and EPS Surprise | HEALTHWAYS INC Quote
We believe that Healthways’ strong business model accompanied with the introduction of exclusive programs like ‘SilverSneakers’ are significant growth factors. Moreover, solid customer base in both domestic and international markets is likely to drive growth.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 and Earnings ESP of 0.00%. We note that the both Most Accurate estimate and the Zacks Consensus Estimate for Healthways is pegged at a penny.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HEALTHWAYS INC (HWAY): Free Stock Analysis Report
PHARMERICA CORP (PMC): Free Stock Analysis Report
INTREXON CORP (XON): Free Stock Analysis Report
CIVITAS SOLUTNS (CIVI): Free Stock Analysis Report
SURGERY PARTNRS (SGRY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
