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Medical Products' Nov 5 Earnings Roster: BDX, ABC & More

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Trina Mukherjee
·5 min read
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The earnings picture, so far, has shown that the Medical sector appears to have withstood the rigors of the COVID-19 induced economic volatility better compared to the other sectors. In fact, the third-quarter 2020 results that have been reported so far have exhibited signs of recovery in comparison to the second quarter, which saw the harshest impact of the pandemic.

With the lifting of stay-at-home orders and easing of prior restrictions, 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. Apart from this, substantial market adoption of COVID-19-related healthcare-support products and services, investment in advancing digital health and remote consultation technologies may have contributed to third-quarter performance.

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 third quarter.

Nonetheless, according to the latest Earnings Preview, this sector’s scorecard so far reflects 8% earnings growth on 12.1% improvement in revenues. Overall, earnings are projected to increase 8% (Q2 reported growth was 4.7%) on 10.2% revenue growth (growth of 3.1% in Q2).

Let’s take a look at four Medical Product stocks scheduled to announce results on Nov 5.

Becton, Dickinson and Company BDX: Becton Dickinson, popularly known as BD, is likely to have exhibited strong performance in its BD Life Sciences segment in the fiscal fourth quarter of 2020. The segment’s to-be-reported quarter’s results are likely to reflect solid year-over-year growth in revenues from assays, which are used to detect a broad range of infectious diseases, healthcare-associated infections and cancer. Notably, strong performance by the Diagnostic Systems and Biosciences sub-units may have contributed to the fiscal fourth-quarter performance. Moreover, the company is likely to have witnessed revenue growth in Medication Management Solutions unit driven by higher demand for infusion pumps in the United States under medical necessity and strong growth outside the country, particularly in Europe. (Read more: What’s in Store for Becton, Dickinson’s Q4 Earnings?)

Our proven model does not conclusively predict an earnings beat for BD 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 #4 (Sell) and an Earnings ESP of +1.07%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company Price and EPS Surprise
Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company price-eps-surprise | Becton, Dickinson and Company Quote

AmerisourceBergen Corporation ABC: AmerisourceBergen’s Pharmaceutical Distribution segment’s fiscal fourth-quarter 2020 performance is likely to have benefited from sustained growth in specialty product sales and expanding customer base. Solid organic growth rates in the U.S. pharmaceutical market, population demographics and improving patient access to medical care might get reflected in the to-be-reported quarter’s results. (Read more: AmerisourceBergen to Post Q4 Earnings: What’s in Store?)

AmerisourceBergen has an Earnings ESP of -0.36% and a Zacks Rank #3.

AmerisourceBergen Corporation Price and EPS Surprise

AmerisourceBergen Corporation Price and EPS Surprise
AmerisourceBergen Corporation Price and EPS Surprise

AmerisourceBergen Corporation price-eps-surprise | AmerisourceBergen Corporation Quote

Cardinal Health, Inc. CAH: With elective procedures and physician office visits gradually recovering to pre-COVID-19 levels exiting fiscal 2021 (with a more substantial impact in the first half of the year), Cardinal Health’s Pharmaceutical segment performance is likely to have gained from the same in fiscal first-quarter 2021. Moreover, higher contribution from key growth areas — Specialty and Connected Care — and sustained dynamics within its generics program are likely to have contributed to the segment’s fiscal first-quarter results. (Read more: Cardinal Health to Post Q1 Earnings: What's in Store?)

Cardinal Health has an Earnings ESP of +0.66% and a Zacks Rank #3.

Cardinal Health, Inc. Price and EPS Surprise

Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. Price and EPS Surprise

Cardinal Health, Inc. price-eps-surprise | Cardinal Health, Inc. Quote

DENTSPLY SIRONA Inc. XRAY: DENTSPLY SIRONA’s Consumables segment is likely to have witnessed decline in revenues in the third quarter of 2020. The sluggish performance can be attributed to fall in organic sales resulting from lower demand across all three regions due to lower visits by dentists and customers and procedures on account of the COVID-19 pandemic. Also, the company’s Technology & Equipment segment’s third-quarter 2020 results are likely to reflect weak performance across all its products categories, equipment and instruments, and implants due to the impact of the pandemic. (Read more: DENTSPLY SIRONA to Post Q3 Earnings: What’s in Store?)

DENTSPLY SIRONA has an Earnings ESP of +12.03% and a Zacks Rank #3.

DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. Price and EPS Surprise

DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote

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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
 
DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
 
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AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
 
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