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Key Factors to Know Ahead of TransEnterix (TRXC) Q4 Earnings

Zacks Equity Research

TransEnterix, Inc. TRXC is scheduled to report fourth-quarter 2018 results on Feb 26, after the market closes.

In the last reported quarter, the company’s loss per share of 6 cents was narrower than the Zacks Consensus Estimate by a penny. It witnessed negative surprises in one of the trailing four reported quarters, the average miss being 134.5%.

Let’s see, how things are shaping up prior to this announcement.

Factors at Play

TransEnterix is expected to make a strong top-line contribution in the fourth quarter from its several new product developments. In late 2018, the company received a CE Mark for its ultrasonic energy device, followed by its commercial launch in EMEA. The company is expected to garner profits from this upside in the to-be-reported quarter.

TransEnterix, Inc. Price and EPS Surprise

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

Within the company’s core Senhance Surgical System line, the company recently received an FDA 510(k) clearance for its Senhance Ultrasonic System following the CE mark approval of the same. In the third quarter, the company gained an FDA nod for its additional 5 millimeter Senhance System instruments.

Earlier, the company secured an FDA 10-K clearance for expanded indications with regard to Senhance for including both laparoscopic inguinal hernia repair and laparoscopic gall bladder surgery. Per TransEntrix, both are high-volume procedures and therefore, have potential to double the company’s addressable procedure market conducting more than three million procedures per year. These launches and expanded indications for use, are expected to significantly contribute to the company’s revenues per procedure in the fourth quarter.

Of late, TransEnterix made a notable progress, internationally. During the third quarter, the company made eight system sales in EMEA. At present, it has 10 commercially sold systems and three strategic placements to produce clinical data for global regulatory submissions.

Based on the company’s success in EMEA, courtesy of its distribution partners in the region, TransEnterix is currently targeting internal spending on distribution support network including training, regulatory, language continuity, service and sales support. This should further aid its fourth-quarter performance.

Within Asia Pacific, the company has so far achieved meaningful growth in Japan. The island country is the second largest robotics market in the world after the United States and TransEnterix consistently sees a significant inbound interest in the area.

Here’s What Our Quantitative Model Predicts

Our proven Zacks model clearly indicates that a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has substantial chances 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.

TransEnterix has a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its Earnings ESP of 0.00% makes surprise prediction difficult.  Thus, this combination fails to forecast a positive surprise for the stock this earnings season.

Stocks Worth a Look

Following are a few medical stocks worth considering with the right mix of elements to beat on earnings in the upcoming quarterly results:

BioDelivery Sciences International, Inc. BDSI has an Earnings ESP of +38.46% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.

MacroGenics, Inc. MGNX has an Earnings ESP of +5.44% and a Zacks Rank #2.

TG Therapeutics, Inc. TGTX has an Earnings ESP of +0.55% and is a Zacks #1 Ranked player.

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TransEnterix, Inc. (TRXC) : Free Stock Analysis Report
 
MacroGenics, Inc. (MGNX) : Free Stock Analysis Report
 
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BioDelivery Sciences International, Inc. (BDSI) : Free Stock Analysis Report
 
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