4 Medical Product Stocks Set to Outpace Q3 Earnings Estimates
The third-quarter reporting cycle is off to a positive start with most companies beating estimates and reassuring guidance for the coming periods. Moreover, the companies’ near-term outlook did not show signs of any impending recession. The Medical sector has reflected a positive start so far in the third-quarter reporting cycle, as the majority of the reported companies’ earnings and revenues beat on estimates.
The key medical product companies that have released their earnings so far showed continued recovery (within their base businesses through the third quarter) from the corresponding period of 2022. These companies reported rising as well as better-than-expected earnings and revenues. However, ongoing macroeconomic headwinds in the form of inflation and higher interest rates put pressure on the bottom line.
The Earnings Trends report indicates that as of Oct 18, 6.6% of the companies in the Medical sector, representing 24.7% of the sector’s market capitalization, reported quarterly earnings. All industry participants beat on earnings, while 75% beat on revenues. While earnings improved 5.6% year over year, revenues rose 7.5%.
The top line was driven by improving demand for medical products while the same remained subdued due to rising inflationary pressure and interest expense. Overall, the Medical sector’s third-quarter earnings are expected to decline 15.4%, while sales are anticipated to increase 5.1% year over year.
Zeroing in on Winners
Below, we have highlighted four medical product companies — Edwards Lifesciences EW, Insulet PODD, DexCom DXCM and IQVIA IQV — that are expected to deliver a beat in their upcoming quarterly result.
Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The selection can be made with the help of the Zacks Stock Screener.
Our research shows that the chance of an earnings surprise for stocks with this combination is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
4 Medical Product Stocks That Match the Criteria
Edwards Lifesciences
Edwards Lifesciences deals in products and technologies aimed at treating advanced cardiovascular diseases. It has an Earnings ESP of +3.06% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 59 cents per share.
Edwards Lifesciences’ earnings beat estimates in three of the last four quarters and missed the same in one, delivering an average surprise of 1.62%. EW is expected to report earnings on Oct 26.
Edwards Lifesciences Corporation Price and EPS Surprise
Edwards Lifesciences Corporation price-eps-surprise | Edwards Lifesciences Corporation Quote
Insulet
The company is a leading developer, manufacturer and marketer of the Omnipod Insulin Management System. It has an Earnings ESP of +6.61% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 40 cents per share.
Insulet’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 126.94%. PODD is scheduled to report earnings on Nov 2, after market close.
Insulet Corporation Price and EPS Surprise
Insulet Corporation price-eps-surprise | Insulet Corporation Quote
DexCom
DexCom is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems. It has an Earnings ESP of +7.39% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter earnings is pinned at 34 cents per share.
DexCom’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 28.83%. DXCMis slated to report earnings on Oct 26, after market close.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
IQVIA
IQVIA provides advanced analytics, technology solutions and contract research services to the life sciences industry. It has an Earnings ESP of +0.51% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter earnings is pinned at $2.46 per share.
IQVIA’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 2.26%. IQV is slated to report earnings on Nov 1, after market close.
IQVIA Holdings Inc. Price and EPS Surprise
IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote
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Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
