Medical Device Stock Earnings Roster for Apr 27: BSX, HOLX & More
According to our latest earnings preview article, companies in the Medical sector has reported a strong year-over-year growth so far this reporting cycle. Going by the sector’s scorecard, 7% of the companies in the Medical sector, constituting nearly 27.6% of the sector’s market capitalization, reported earnings till Apr 22. Of these, 100% beat earnings estimates and 75% beat the same for revenues. Earnings increased 8.4% year over year on 13.5% higher revenues.
This scorecard reflects stability in the United States on continued economic reopening. However, a number of MedTech players witnessed severe staffing shortages and supply-chain hazards during the first quarter, thanks to the emergence of the new COVID-19 variants.
Overall, first-quarter earnings for the Medical sector are expected to rise 10.3% on a 13.3% sales increase. This compares with the fourth-quarter reported earnings growth of 27.8% and revenue growth of 14.3%. It is worth mentioning that the Medical sector is expected to be one of the nine sectors with positive projected earnings growth in the first quarter of 2022.
Medical Device Quarterly Synopsys
Integral to the broader Medical sector, Medical Device or Zacks-defined Medical Products companies’ collective business growth is likely to have improved compared to last year with the significant rise in vaccination drive and a reduction in COVID-led fatality across the United States and other developed countries. The dynamic nature of the COVID-19 crisis has been a roller coaster for the Medical Products industry over the past few months. In the past few quarters, companies within this space have witnessed a steep decline in their base business. However, the results of the majority of medical device stocks so far have shown accelerated non-COVID business growth through the first quarter compared with 2020, given the reduction in COVID-19 severity despite the emergence of new virus variants. Overall, the legacy base business recovery of the companies through the months of the first quarter was impressive.
It is noteworthy to mention here that the disruptions in the form of the emergence of more contagious COVID-19 variants like Delta, Omicron and XE are still evident in many developed countries. A number of MedTech players witnessed severe staffing shortages and supply-chain hazards in the first quarter. As a result, many industry players witnessed a decline in their business performance on a sequential basis.
Also, the first-quarter results of the diagnostic testing stocks have shown a decline in their testing demand so far due to declining cases, leading to deterred business growth for many.
Let’s take a look at four Medical Device players scheduled to announce results on Apr 27.
Boston Scientific Corporation BSX: Boston Scientific’s first quarter top line is likely to have improved year over year, with the non-COVID elective medical procedures running full-fledged in the United States and other regions across the globe. Moreover, within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth. The Lumenis acquisition (closed in September) is expected to have made a full-quarter contribution to sales. (Read more: What's in Store for Boston Scientific in Q1 Earnings?).
Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
The Zacks Consensus Estimate for the company’s first-quarter earnings per share is pegged at 38 cents and revenues at $2.95 billion.
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. However, this is not the case, as you can see below.
BSX has an Earnings ESP of -0.53% and carries a Zacks Rank #3. 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 stocks here.
Hologic, Inc. HOLX: Hologic’s global Molecular Diagnostics revenues for the fiscal second quarter is expected to reflect the benefits of more than 3,000 Panther instruments installed globally. The company’s Panther and Panther Fusion instruments have likely maintained momentum on continued customer adoption, thus contributing to the top line. Moreover, Hologic’s GYN Surgical business arm is expected to have registered strong growth in the fiscal second quarter on the back of a rebound in demand for NovaSure endometrial ablation system from the launch of its next-generation B5 system as well as growing momentum from new products such as Fluent and Acessa. (Read more: Hologic to Report Q2 Earnings: What's in the Cards?).
Hologic, Inc. Price and EPS Surprise
Hologic, Inc. price-eps-surprise | Hologic, Inc. Quote
The Zacks Consensus Estimate for its second-quarter earnings per share is pegged at $1.55. Revenues are expected at $1.28 billion.
HOLX has an Earnings ESP of +0.65% and a Zacks Rank #3.
Align Technology, Inc. ALGN: Align Technology is likely to have gained from the continued adoption of iTero scanners, including the iTero Element 5D Plus imaging system, in the first quarter of 2022. Further, Align Technology’s continued efforts to build on its successful "Invis is" multimedia campaign and drive awareness about the Invisalign treatment in adult, teen, and parent consumer segments are likely to have driven Invisalign utilization in the to-be-reported quarter. (Read more: Align Technology to Post Q1 Earnings: What's in Store?).
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
The Zacks Consensus Estimate for its first-quarter earnings per share is pegged at $2.25. Revenues are expected to be $1.00 billion.
ALGN has an Earnings ESP of +4.60% and a Zacks Rank #3.
Integra LifeSciences Holdings Corporation IART: Integra’s Codman Specialty Surgical segment results are expected to reflect growth on continued contributions from the launch of CereLink in the United States and Europe and a recovery in indirect markets as well as both instruments and private label businesses during the first quarter of 2022. During the fourth quarter, Integra accelerated investments in digital capabilities that will enable the commercial teams to reach a broader customer base. Also, the company has added specialists in neuromonitoring, hydrocephalus and seven regenerative areas. These developments are likely to have contributed to the company’s top line in the to-be-reported quarter.
Integra LifeSciences Holdings Corporation Price and EPS Surprise
Integra LifeSciences Holdings Corporation price-eps-surprise | Integra LifeSciences Holdings Corporation Quote
The Zacks Consensus Estimate for its first-quarter earnings per share is pegged at 68 cents. Revenues are expected at $362.60 million.
IART has an Earnings ESP of -1.68% and a Zacks Rank #3.
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