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Apyx Medical (APYX) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

Apyx Medical APYX is scheduled to report first-quarter 2019 results on May 8, after market close. While the company is likely to gain from its J-plasma technology, stiff competition in the MedTech space is a concern.

 

The company has a negative average earnings surprise of 36.4% for the last three quarters.

 

Which Way Are Estimates Treading?

 

For the first quarter, the Zacks Consensus Estimate for the bottom line stands at a loss of 18 cents.

 

Let’s see how things are shaping up prior to the earnings release.

Apyx Medical Corporation Price and EPS Surprise

 

Bovie Medical Corporation Price and EPS Surprise | Bovie Medical Corporation Quote

Factors to Consider

 

The J-Plasma technology under the Renuvion brand has been a key contributor to the company’s top line and is expected to drive first-quarter results as well.

 

The recent divestment of the company’s Core segment has helped increase focus on the commercialization of the J-Plasma technology. Notably, the transaction generated the requisite capital to invest in the technology.

 

In the recent past, the company announced the completion of enrolment for the U.S. Investigational Device Exemption clinical study of its J-Plasma Renuvion technology for use in dermal skin resurfacing. This followed the earlier launch of Renuvion in the cosmetic surgery market. This is expected to ramp up sales of the flagship technology in the quarter to be reported.

 

As a strategic initiative, Apyx Medical has continued to build physician and practice support for customers in the cosmetic surgery market with the Renuvion cosmetic technology brand.

 

Meanwhile, management at Apyx Medical expects incremental R&D expenses owing to the expansion of the J-plasma Renuvion technology. While it reflects further room for improvement, it might keep margins under pressure in the quarter to be reported.

 

Additionally, the company faces stiff competition in the MedTech space from plasma competitors and laser competitors, which might also impact margins.

 

What Does Our Model Say?

 

Our proven model shows that a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to deliver a positive earnings surprise. However, that is not the case here.

 

Earnings ESP: Apyx Medical has an Earnings ESP of -2.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

Zacks Rank: Apyx Medical carries a Zacks Rank #3. You can see  the complete list of today’s Zacks #1 Rank stocks here .

 

Meanwhile, 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 revision.

 

Stocks Worth a Look

 

Here are a few stocks that are likely to post a beat this earnings season.

 

Cardinal Health CAH has an Earnings ESP of +1.13% and a Zacks Rank #3.

 

Aurora Cannabis ACB has an Earnings ESP of +55.88% and a Zacks Rank #3.

 

HEXO Corp. HEXO has an Earnings ESP of +2.78% and a Zacks Rank #3.

 

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