Medical Products' Feb 11 Earnings Roster: DXCM, LH & More
The earnings picture, so far, has shown that the Medical sector seems to have withstood the rigors of the COVID-19 induced economic volatility better compared to the other sectors. According to the latest Earnings Preview, this sector’s scorecard so far reflects 11.1% earnings growth on 11.9% improvement in revenues. Although it is worth mentioning here that the resurgence of cases and new strains of coronavirus are likely to have weighed on the fourth-quarter 2020 results.
Nonetheless, with the gradual lifting of stay-at-home orders and easing of prior restrictions in several states and regions, most of the Medical Products companies (integral to the broader Medical sector) are likely to have exhibited business growth driven by month-wise rebound in sales volumes. Some of these companies have been making substantial investments in the advancement of digital health and remote consultation technologies, which in turn provided huge support to the medical communities amid the pandemic.
Apart from this, substantial market adoption of COVID-19-related healthcare-support products and services is likely to have contributed to fourth-quarter results. In fact, many of these companies have come up with bullish earnings reports so far this reporting cycle.
However, some of the companies, especially those with massive international base, witnessed a fall in product demand across their core business segments and geographies in the fourth quarter.
Let’s take a look at four Medical Product stocks that are scheduled to announce results on Feb 11.
DexCom, Inc. DXCM: DexCom’s fourth-quarter 2020 top line is likely to reflect increase in volumes, courtesy of new patients across all channels and rising global awareness regarding the benefits of its real-time Continuous Glucose Monitoring (CGM). In fact, per the preliminary announcement, DexCom — the leader in CGM — anticipates fourth-quarter 2020 revenues to meet or exceed $567 million (up 23% from the year-ago quarter). (Read more: DexCom to Report Q4 Earnings: What's in the Cards?)
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
Our proven model does not conclusively predict an earnings beat for DexCom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has a Zacks Rank #3 and an Earnings ESP of 0.00%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Laboratory Corporation of America Holdings LH: With respect to COVID-19 related testing, the company, also known as LabCorp, is anticipated to have secured high return in fourth-quarter 2020. Per its October update, the company had performed approximately 22 million COVID-19 tests, which comprised about 19 million PCR tests and over 3 million antibody tests. (Read more: Higher Testing Volume to Aid LabCorp's Q4 Earnings)
LabCorp has a Zacks Rank #3 and an Earnings ESP of +7.88%.
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote
Bio-Rad Laboratories, Inc. BIO: Bio-Rad had earlier confirmed that the pandemic had resulted in a pronounced change in product demand across the company’s portfolio. The company’s fourth-quarter 2020 results is likely to reflect robust demand for COVID-19 testing and research-related products over the pandemic months. (Read more: Bio-Rad to Report Q4 Earnings: What's in the Cards?)
Bio-Rad has a Zacks Rank #3 and an Earnings ESP of 0.00%.
BioRad Laboratories, Inc. Price and EPS Surprise
BioRad Laboratories, Inc. price-eps-surprise | BioRad Laboratories, Inc. Quote
American Well Corporation AMWL: American Well, which is a complete digital care delivery solution, saw a substantial increase in total visits in third-quarter 2020 primarily driven by growing demand for telehealth infrastructure. This momentum is likely to have continued in fourth-quarter 2020.
The company has a Zacks Rank #3 and an Earnings ESP of 0.00%.
American Well Corporation Price and EPS Surprise
American Well Corporation price-eps-surprise | American Well Corporation Quote
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