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The healthcare sector is one of the integral constituents of the U.S. economy and currently gained all the more prominence as the world is looking for a cure to contain the contagious coronavirus.
Amid the pandemic-led market volatility, healthcare companies have hitherto shown more resilience than many other industries.
The healthcare industry belongs to the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification).
Going by the latest Earnings Preview, this sector’s scorecard shows that 75.9% of the companies that already reported results delivered 13.2% earnings growth on a 22% upside in revenues. Overall, earnings are projected to increase 23.6% in the March quarter (11.9% uptick was reported in the December quarter) on an expected 10.6% revenue improvement (12.7% growth was registered in the fourth quarter).
Notably, healthcare companies were able to serve patients well by appropriately investing in virtual physician education and remote clinical support. This, in turn, drove their revenues.
For the hospital companies in particular, return of the elective procedures, which were suspended earlier, helped recovery in their patient admissions, thereby aiding revenues.
Health insurance participants are likely to have suffered a negative impact from moderation of the care deferral, which was experienced in the quarters just after the COVID outbreak. Further, direct COVID-care costs and fewer commercial insurance plans might have hurt earnings.
This apart, the testing, vaccine and therapeutic makers are riding on a huge market adoption of their COVID-related healthcare-support products and services.
Let’s take a look at the three healthcare stocks that are scheduled to announce first-quarter 2021 earnings results on May 7.
Elanco Animal Health Incorporated ELAN operates as an animal health care company. It develops, manufactures and markets products for companion and food animals. It is based in Greenfield, United States.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.16 billion, indicating a rise of 75.89% from the year-ago period’s reported figure. The same for earnings per share (EPS) stands at 23 cents, suggesting a 76.92% dip from the year-earlier quarter’s reported number.
Elanco Animal Health has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — which increases the odds of an earnings beat. It has an Earnings ESP of +1.90% and a Zacks Rank of 3, presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So, our proven Zacks model predicts an earnings beat for the company this time around. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company’s bottom line outpaced the consensus mark in three of the last four quarterly reports (missed the mark in one), the average beat being 86.46%.
Elanco Animal Health Incorporated Price and EPS Surprise
Elanco Animal Health Incorporated price-eps-surprise | Elanco Animal Health Incorporated Quote
Mednax Inc. MD provides newborn, maternal-fetal, radiology, pediatric cardiology and other pediatric subspecialties physician services in the United States and Puerto Rico. It also offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners and other pediatric clinicians, etc.
This physician group is expected to post quarterly earnings of 16 cents per share in its upcoming report, which implies a year-over-year decline of 50%. Revenues are expected to be $436.56 million, indicating a decline of 48.4% from the year-ago quarter’s reported figure.
The stock carries an Earninhs ESP of 0.00% and is presently Zacks #3 Ranked. So, this combination makes surprise prediction difficult for Mednax this reporting cycle.
The company’s bottom line missed the consensus mark in three of the trailing four quarters (surpassed estimates in the remaining one), the average beat being 15.67%.
MEDNAX, Inc. Price and EPS Surprise
MEDNAX, Inc. price-eps-surprise | MEDNAX, Inc. Quote
ModivCare Inc. MODV is a technology-enabled healthcare services company. It provides a suite of integrated supportive care solutions for public and private payors, and their patients.
The company is expected to post quarterly earnings of $1.70 per share in its upcoming report, which indicates a year-over-year increase e of 193.1%. Revenues are expected to be $456.47 million, hinting at a 24.3% increase from the year-ago quarter’s reported figure.
The stock carries an Earnings ESP of 0.00% and is a #3 Ranked player at present. So, this combination makes surprise prediction difficult for ModivCare this earnings season.
The company’s bottom line outpaced the consensus mark in two of the last two quarterly reports (missed estimates on the other two occasions), the average beat being 253.98%.
ModivCare Inc. Price and EPS Surprise
ModivCare Inc. price-eps-surprise | ModivCare Inc. Quote
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MEDNAX, Inc. (MD) : Free Stock Analysis Report
Elanco Animal Health Incorporated (ELAN) : Free Stock Analysis Report
ModivCare Inc. (MODV) : Free Stock Analysis Report
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