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Medical Product Stock Q3 Earnings on Oct 31: BAX, MASI & More

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Medical Product Stock Q3 Earnings on Oct 31: BAX, MASI & More

Long-term growth prospects of the Medical Products industry looks promising despite certain short-term political conundrums.

The U.S. Medical Products industry has been gaining prominence on the back of Artificial Intelligence (AI), cloud-based services and minimally-invasive surgeries. The companies are presently gaining from R&D innovation, courtesy of the 2.3% Medical Device tax abolition earlier this year.

Coming to price performance, the industry has rallied 1.7% compared with the S&P 500 index’s rise of 0.4% over the past six months. Given the positive backdrop, it would be interesting to analyze how the sector looks this earnings season.

Within the broader Medical sector, we now have third-quarter releases from 35.7% of the sector’s total market cap in the S&P 500 index. Total earnings for these companies are up 15.9% year over year on 13.1% higher revenues. The beat ratio is also impressive with 71.4% trumping earnings estimates and 57.1% beating the mark for revenues.

What’s in the Offing for Medical Product Players?

Our latest Earnings Trends report calls for earnings growth of 9.4% for the sector on 6.7% revenue improvement (as of Oct 24).

However, the U.S.-China trade war shows no signs of abating. The Trump administration announced a new round of tariffs (almost 10%) on about $200 billion on Chinese imports in September. Notably, a significant amount of these imports are medical products, devices and medical imaging components.

Although it is not likely to reflect on third-quarter results, a few analysts expect the factors to reflect on upcoming results of Medical Product companies.

What Our Model Says

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. Meanwhile, we caution against Sell-rated stocks (#4 or 5). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Considering the above factors, we take a look at four Medical Product companies that are set to release results on Oct 31.

Baxter International Inc. BAX is scheduled to report third-quarter 2018 earnings before market opens. The company has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that hints at slim chances of a beat this reporting cycle. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, Baxter is expected to gain from its core Medication Delivery segment. (Read More: Can Medication Delivery Unit Aid Baxter's Q3 Earnings?)

In the last reported quarter, Baxter posted adjusted earnings per share (EPS) of 77 cents, which beat the Zacks Consensus Estimate by 8.5% and improved from the year-ago quarter’s 63 cents.

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 74 cents, showing year-over-year growth of 15.6%. The same for revenues is pinned at $2.79 billion, reflecting an increase of 2.9% year over year.

Baxter International Inc. Price and EPS Surprise

 

Baxter International Inc. Price and EPS Surprise | Baxter International Inc. Quote

Masimo Corporation MASI is scheduled to report third-quarter 2018 earnings after market close. The company has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that dims possibilities of a beat.

However, Masimo is expected to gain from Product revenues. (Read More: Will Product Revenues Drive Masimo's Q3 Earnings?)

In the last reported quarter, Masimo posted adjusted EPS of 73 cents, which beat the Zacks Consensus Estimate by a penny. Earnings surged 32.7% on a year-over-year basis.

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 68 cents, showing a year-over-year decline of 2.9%. The same for revenues is pinned at $206.3 million, indicating growth of 6.5% year over year.

Masimo Corporation Price and EPS Surprise

 

Masimo Corporation Price and EPS Surprise | Masimo Corporation Quote

LivaNova LIVN is scheduled to report third-quarter 2018 earnings before market opens. The company has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, a combination that hints at a negative earnings surprise.

In the last reported quarter, LivaNova posted adjusted EPS of 96 cents, which beat the Zacks Consensus Estimate of 91 cents. Earnings deteriorated 5% on a year-over-year basis.

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 87 cents, showing a year-over-year decline of 6.5%. The same for revenues is pinned at $273.5 million, indicating a decline of 11.7% year over year.

LivaNova PLC Price and EPS Surprise

 

LivaNova PLC Price and EPS Surprise | LivaNova PLC Quote

Integra LifeSciences Holdings Corporation IART is scheduled to report third-quarter 2018 earnings before market opens. The company has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that shows slim chances of a beat.

The company is expected to gain from its core Codman Specialty Surgical (CSS) segment.

In the last reported quarter, the company reported adjusted EPS of 60 cents, up 33.3% from the year-ago figure.

For the quarter to be reported, the Zacks Consensus Estimate for earnings stands at 59 cents, reflecting a year-over-year surge of 31.1%. The same for revenues is pinned at $370.6 million, showing a rise of 32.9% year over year.

Integra LifeSciences Holdings Corporation Price and EPS Surprise

 

Integra LifeSciences Holdings Corporation Price and EPS Surprise | Integra LifeSciences Holdings Corporation Quote

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Masimo Corporation (MASI) : Free Stock Analysis Report
 
Baxter International Inc. (BAX) : Free Stock Analysis Report
 
Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
 
LivaNova PLC (LIVN) : Free Stock Analysis Report
 
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