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BioTelemetry (BEAT) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

BioTelemetry, Inc. BEAT is set to report first-quarter 2019 results on Apr 25, after market close. The company expects to gain from core Healthcare Services business in the quarter to be reported.

In the last reported quarter, the company delivered a positive earnings surprise of 33.3%. Further, it has an average four-quarter positive surprise of 50.8%.

Which Way Are Estimates Heading?

For the quarter to be reported, the Zacks Consensus Estimate for earnings stands at 43 cents, suggesting year-over-year growth of 10.3%. The same for revenues stands at $104.3 million, indicating an increase of 10.4% year over year.

BioTelemetry, Inc. Price and EPS Surprise

 

BioTelemetry, Inc. Price and EPS Surprise | BioTelemetry, Inc. Quote

 

Let’s take a look at how things are shaping up prior to the earnings release.

Factors to Consider

First-quarter revenue growth is expected to be driven by strength in the Healthcare Services business, which has been consistently driving the top line for quite some time.

In fact, for the first quarter of 2019, management expects revenues within $102-$105 million. Moreover, EBITDA return is projected at 28%.

Management is optimistic about contributions from the new MCT (mobile cardiac telemetry) and extended Ware Holter products to the quarterly results. Interestingly, these products have been seeing rising patient volumes along with a favorable payor mix.

Management is also optimistic about the LifeWatch acquisition, which has proven accretive already and is anticipated to contribute to the results in the soon-to-be-reported quarter.

We expect these developments to continue boosting the top line in the first quarter of 2019.

However, it must be noted that BioTelemetry receives reimbursements for products from commercial payors. Hence, changes in reimbursement rates can materially impact revenues and hence the overall operating results of the company.

Here’s What Our Quantitative Model Predicts:

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BioTelemetry has a Zacks Rank #1 and an Earnings ESP of 0.00%, a combination that does not suggest an earnings beat in the quarter to be reported.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post a beat this earnings season:

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

Stryker Corporation SYK, with an Earnings ESP of +0.63% and a Zacks Rank #3.

Medidata Solutions MDSO, with an Earnings ESP of +12.31% and a Zacks Rank #3.

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