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BioTelemetry (BEAT) to Report Q2 Earnings: What's in Store?

Zacks Equity Research

BioTelemetry, Inc. BEAT is expected to report second-quarter 2019 results soon. Notably, the company’s core Healthcare Services business is anticipated to bolster its quarterly performance.

In the last reported quarter, the company delivered an earnings beat of 0.00%, the average four-quarter positive surprise being 36.8%.

Which Way Are Estimates Moving?

The Zacks Consensus Estimate for second-quarter earnings stands at 45 cents, suggesting a 2.2% decline from the year-earlier quarter's reported figure. For quarterly revenues, the same is pegged at $111.1 million, indicating a 9.6% increase from the prior-year quarter's reported number.

BioTelemetry, Inc. Price and EPS Surprise

BioTelemetry, Inc. Price and EPS Surprise

BioTelemetry, Inc. price-eps-surprise | BioTelemetry, Inc. Quote

Let’s delve deeper.

Factors at Play

In the quarter to be reported, BioTelemetry’s 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.

Management at BioTelemetry is optimistic about its new MCT and extended wear Holter products that are expected to have significantly boosted Healthcare Services’ sales.

Further, the company expects its top line in the second quarter to have significantly benefited from key population health business. Notably, the company has made key partnerships and internal investments in recent times to develop this business. Among these partnerships, its recent acquisitions of LifeWatch and Geneva are noteworthy.

Reflective of the afore-mentioned positives, BioTelemetry is expecting second-quarter revenues within $110-$112 million, mirroring 10% year-over-year growth. Adjusted EBITDA return is projected at 27%.

However, management expects BioTelemetry’s quarterly performance to be slightly offset by headwinds from the reduction in Medicare pricing. Additionally, any changes in the reimbursement rates can materially impact BioTelemetry’s revenues.

Also, the cardiac monitoring market is highly competitive and fragmented, which is concerning.

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. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BioTelemetry has a Zacks Rank #3 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 an earnings beat this quarter.

AmerisourceBergen ABC has an Earnings ESP of +0.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DENTSPLY SIRONA XRAY has an Earnings ESP of +6.95% and a Zacks Rank #1.

Acadia Healthcare Company, Inc. ACHC has an Earnings ESP of +4.30% and a Zacks Rank #1.

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BioTelemetry, Inc. (BEAT) : Free Stock Analysis Report
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