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Medical Products Earnings Due on Nov 2: STE, HSIC & More

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Urmimala Biswas
·5 min read
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The Medical sector has so far reported better results compared to the first two quarters of the year. In fact, it is one of the three sectors expected to report earnings and revenue growth in the third quarter out of the 16 broad Zacks sectors within the Zacks Industry classification.

Per the latest Earnings Preview, the Medical sector’s scorecard (58.6% of the sector’s total market cap having already reported their quarterly numbers) so far reflects 8% earnings growth on 12.1% upside in revenues. Overall, earnings are projected to grow 8% (Q2 reported growth was 4.7%) on 10.2% revenue growth (growth of 3.1% in Q2).

Integral to the broader Medical sector, Medical Products companies’ collective business growth is likely to have improved from the last reported quarter with month-wise rebound in base sales volumes on gradual lifting of restrictions in many states and regions. In the third quarter, these companies invested in virtual physician education, remote clinical support and digital sales enablement suitable for healthcare support amid the pandemic. Besides, testing, vaccine and therapeutic makers are riding on huge market adoption of their COVID-19-related healthcare-support products and services.

Many of these companies have already come up with bullish earnings reports so far this reporting cycle.

However, some of the companies, particularly those with a huge international base witnessed a notable reduction in product demand across their core business segments and geographies in Q3 as well.

The Zacks Medical Product sector currently carries a Zacks Sector Rank in the bottom 33% (169 of 253 industries).

Let’s take a look at four Medical Product market leaders scheduled to announce results on Nov 2.

STERIS STE: Within Applied Sterilization Technologies (AST), higher demand from the company’s core medical device customers is expected to have pumped up sales. With the pandemic-led change in market behavior, we expect continued growth in AST facilities that process personal protective equipment (PPE) like gowns and gloves and medical devices for the home setting like insulin pumps and blood glucose monitors.

The Zacks Consensus Estimate for the quarter is pegged at earnings per share of $1.24. Revenues are expected to be $705.2 million.

STERIS does not have 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 0.00% and a Zacks Rank #2 (Buy).

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 (Strong Buy) stocks here.

(Read more: STERIS to Report Q2 Earnings: What's in the Cards?)

STERIS plc Price and EPS Surprise

STERIS plc Price and EPS Surprise
STERIS plc Price and EPS Surprise

STERIS plc price-eps-surprise | STERIS plc Quote

Henry Schein HSIC: Per Henry Schein’s August update, there has been gradual reopening of practices and increased patient traffic globally. This recovery trend is likely to have continued during the rest of the third quarter as well, thus boosting the top line. Notably, the company’s global dental sales have significantly benefited from the growing sales of personal protective equipment (“PPE”) over the past few months as safety protocols remain a necessity in the dental practice space under the pandemic scenario.

Henry Schein has the right combination of the two key ingredients. The company has a Zacks Rank #3 and an Earnings ESP of +29.87%.

(Read more: Henry Schein to Report Q3 Earnings: What's in Store?)

Henry Schein, Inc. Price and EPS Surprise

Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. Price and EPS Surprise

Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote

Pacific Biosciences of California PACB: Pacific Biosciences’ third-quarter results are likely to reflect growth in SMRT sequencing technology. The strategic addition of the PacBio Sequel II System to inqaba biotec’s portfolio of genomics services might have acted as catalysts in the quarter to be reported boosting the Sequel system sales.

Pacific Biosciences has a Zacks Rank #3 and an Earnings ESP of +15.39%.

Pacific Biosciences of California, Inc. Price and EPS Surprise

Pacific Biosciences of California, Inc. Price and EPS Surprise
Pacific Biosciences of California, Inc. Price and EPS Surprise

Pacific Biosciences of California, Inc. price-eps-surprise | Pacific Biosciences of California, Inc. Quote

Inspire Medical Systems INSP: Despite the surge in new COVID-19 cases through the third quarter, demand for the company’s minimally invasive solution Inspireimplants has significantly increased for patients with obstructive sleep apnea through its call center called the Inspire Advisory Care Program. This is likely to have an impact on the Q3 top line.

Inspire Medical has a Zacks Rank #3 and an Earnings ESP of +15.29%.

Inspire Medical Systems, Inc. Price and EPS Surprise

Inspire Medical Systems, Inc. Price and EPS Surprise
Inspire Medical Systems, Inc. Price and EPS Surprise

Inspire Medical Systems, Inc. price-eps-surprise | Inspire Medical Systems, Inc. Quote

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Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
 
STERIS plc (STE) : Free Stock Analysis Report
 
Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report
 
Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report
 
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