Bioventus (BVS) to Report Q3 Earnings: What's in the Cards?
Bioventus Inc.’s BVS surgical solutions business unit sales are expected to be in focus when the company reports its third-quarter 2023 results.
Bioventus’ earnings beat estimates in one of the trailing four quarters while missing in the remaining three, the average negative surprise being 12.81%. In the last reported quarter, the company came up with an earnings surprise of 366.67%.
Let us see how things have shaped up for the quarter to be reported.
Factors to Note
Bioventus recognizes revenues under the following categories both in the United States and in ex-U.S. markets — pain treatments, restorative therapies and surgical solutions.
In the last reported quarter, the company’s total revenues witnessed a year-over-year decline, a trend that most likely continued in the third quarter. Total revenues did not include sales from the divesture of the Wound Business.
We note that BVS divested its Wound Business unit in May 2023 to enhance the company’s cash position and focus on the remaining business units.
Sales declined year over year at constant currency change in all three business units in the United States, a trend that most likely continued in the third quarter.
In the third quarter, we expect sales of surgical solutions to have risen in ex-U.S. markets.
On the second-quarter earnings call, management stated that it expects double-digit growth in surgical solutions sales in the second half of the year.
Sales in the pain treatments unit declined year over year due to continued pricing pressure, while restorative therapies unit sales also fell year over year, driven largely by the divestiture of the Wound Business. It remains to be seen if sales in these units improved in the third quarter.
We expect management to provide a vivid picture of the company’s 2023 financial guidance for net sales on the upcoming earnings call. The Zacks Consensus Estimate for total revenues in the to-be-reported quarter is pegged at $120.34 million.
Shares of Bioventus have rallied 23% so far this year against the industry’s decline of 16.1%.
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Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Bioventus this time around. 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. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Bioventus has an Earnings ESP of 0.00% as the Zacks Consensus Estimate and the Most Accurate Estimate stand at earnings of 6 cents each.
Zacks Rank: BVS currently carries a Zacks Rank #2.
Bioventus Inc. Price and EPS Surprise
Bioventus Inc. price-eps-surprise | Bioventus Inc. Quote
Stocks to Consider
Here are a few stocks worth considering from the healthcare space, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Apellis Pharmaceuticals, Inc. APLS has an Earnings ESP of +5.75% and a Zacks Rank #1.
Apellis’ stock has lost 5.3% in the year-to-date period. APLS beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. Apellis delivered an earnings surprise of 1.36%, on average.
Vertex Pharmaceuticals Incorporated VRTX has an Earnings ESP of +1.25% and a Zacks Rank #3.
Vertex’s stock has increased 27.9% in the year-to-date period. VRTX beat earnings estimates in each of the last four quarters. The company delivered an earnings surprise of 4.91%, on average. Vertex will report its third-quarter results on Nov 6.
Acadia Pharmaceuticals Inc. ACAD has an Earnings ESP of +6.76% and a Zacks Rank #2.
Acadia’s stock has surged 44.3% in the year-to-date period. ACAD beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. The company delivered an earnings surprise of 20.33%, on average. Acadia will report its third-quarter results on Nov 2.
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