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Medical Product Stocks May 8 Earnings List: HSIC, PEN & More

We are on the last leg of first-quarter earnings season. Per the latest Earnings Preview, already 409 S&P 500 members have reported financial results and the overall performance reflects many positive signs, buoying optimism among investors. The latest earnings scorecard highlights 24% increase in total earnings on 9.3% higher revenues. The beat ratio has been impressive as well with 78% companies surpassing bottom-line expectations and 75.6% beating the top-line mark.

The Medical sector (one of the 16 Zacks sectors) has put up a stellar show so far. It is projected to rise 13.6% on 8.3% revenue growth this earnings season.

What Awaits Medical Product Stocks?

Broadly speaking, the latest Tax Cuts and Jobs Act has, has also raised hope among stakeholders, having slashed corporate tax rates to 21% from the earlier 35% among many other changes.

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The Medical Product space, which is part of the broader Medical sector, has been hogging a lot of limelight on the back of certain favorable developments. The sector has been going strong, courtesy of encouraging demographics, changing market dynamics toward Artificial Intelligence (AI) & big-data applications, an upbeat consumer sentiment and increased business investments.

Further, the Senate’s decision to defer the implementation of an industry-wide excise tax — the Medical Device tax — for another couple of years,  has instilled confidence in investors. The tax will be effective Jan 1, 2020. The bill also delays the so-called Cadillac tax, a 40% tax on employer insurance, until 2022.

Against this backdrop, let’s take a sneak peek at the major Medical Product stocks, scheduled to release earnings reports on May 8:

Per the quantitative Zacks model, stocks with the perfect combination of a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP have higher chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Henry Schein, Inc. HSIC: Henry Schein’s strategy to globally expand digital dentistry is impressive. Management also looks forward to sustainable dental equipment business growth in Europe and other regions.The company banks on digital dentistry, which is in line with its strategic plan. Furthermore, management believes that the company is well-positioned to gain from the ongoing trend of digitalization in the global dental market.We are also content about the well-diversified Animal Health product portfolio featuring software, diagnostic equipment and surgical instruments. Good news is that an array of solid product offerings has been driving growth domestically as well as globally.

Notably, the company’s earnings outpaced the Zacks Consensus Estimate with an average beat of 0.96% in the trailing four quarters. Moreover, the consensus mark for first-quarter earnings of 92 cents per share has remained unchanged over the last 60 days. The same for the company’s revenues is pegged at $3.17 billion, an 8.5% improvement from the year-ago figure.

Henry Schein has an Earnings ESP of +0.57% and a Zacks Rank #2. (Read more: Can Overall Growth Drive Henry Schein's (HSIC) Q1 Earnings?).

Henry Schein, Inc. Price and EPS Surprise

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

Penumbra, Inc.’s PEN first-quarter 2018 results are expected to gain traction from a strong product uptake. Last reported quarter, the company witnessed better sequential growth on higher procedural volumes. Additionally, the company is actively pursuing marketing strategies.

Also, management seems to cheer for the internal efforts to generate awareness in the domestic region. It also appears positive about a heightened cooperation among hospitals to handle stroke cases.

The Zacks Consensus Estimate is pegged at a loss of 2 cents per share, indicating an 80% year-over-year improvement.

However, it is difficult to conclusively predict an earnings beat for the stock in the last completed quarter as Penumbra has a Zacks Rank #3 and an Earnings ESP of -185.71%. (Read more: What's in Store for Penumbra This Earnings Season?). You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra, Inc. Price and EPS Surprise

Penumbra, Inc. Price and EPS Surprise | Penumbra, Inc. Quote

Bio-Rad Laboratories, Inc. BIO: This is a global provider of a broad range of innovative products and solutions for the life science research and clinical diagnostic markets. The company had net sales exceeding $2.1 billion in 2017.

The consensus estimate for earnings of 90 cents translates into a surge of 119.5% from the year-ago quarter. However, the metric outperformed the Zacks Consensus Estimate with an average beat of 59.22% in the last four quarters. Bio-Rad has an Earnings ESP of 0.00% and is a Zacks #3 Ranked player.

Bio-Rad Laboratories, Inc. Price and EPS Surprise

Bio-Rad Laboratories, Inc. Price and EPS Surprise | Bio-Rad Laboratories, Inc. Quote

Haemonetics Corporation HAE: Haemonetics has been benefiting from a continued momentum in new business generation and geographical expansion. We are happy about Haemonetics’ consistent growth in the Plasma franchise. Strong end-market demand for plasma-derived biopharmaceuticals continues to enhance growth. The company is now focusing on the development and launch of NexSys PCS plasmapheresis system. Additionally, its strong cash position lifts investors’ trust.

Notably, the company’s earnings outshined the Zacks Consensus Estimate with an average positive surprise of 17.46% in the preceding four quarters. While Haemonetics has an Earnings ESP of +2.92%, it carries a Zacks Rank #4 (Sell).

The Zacks Consensus Estimate for fourth-quarter fiscal 2018 earnings stands at 43 cents per share, depicting a significant rise of 10.26% from the prior-year tally. The estimate revision for the company’s revenues sees a 1.5% decline year over year with a value of $224.6 million.

Haemonetics Corporation Price and EPS Surprise

Haemonetics Corporation Price and EPS Surprise | Haemonetics Corporation Quote

More Stock News: This Is Bigger than the iPhone!

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Penumbra, Inc. (PEN) : Free Stock Analysis Report
 
Haemonetics Corporation (HAE) : Free Stock Analysis Report
 
Perrigo Company plc (PRGO) : Free Stock Analysis Report
 
Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
 
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
 
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