Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Medical Product Stocks' Earnings on Jul 20: ABT, ISRG & More

The second-quarter earnings season is in its nascent stage with 30 S&P 500 participants having reported results as of Jul 14. According to the latest Earnings Preview, the earnings cycle has witnessed an encouraging start, courtesy of stable bank results. Total earnings for these members have gone up 13.8% on 6.0% increase in revenues. The uptrend was the result of reduced regulatory burden, tax law changes and an improved outlook for the domestic economy.

Per the latest Earnings Preview report, the second-quarter earnings for the S&P 500 companies are expected to be up 6.6% from the year-ago quarter on 4.5% higher revenues. With the majority of earnings yet to be released, the next fortnight will be crucial in deciding whether this quarter will turn out to be a game changer. Irrespective of the outcome, investors focusing on the Medical sector can expect good news.

The medical sector, one of the 16 broader Zacks sectors, is expected to witness 3.7% higher revenues in the quarter along with a decline of 1.0% in revenues. Investors are adopting a wait and watch about the space as the Zacks categorized Medical - Products industry has registered growth of 0.55% in the last one month, underperforming the S&P 500 Index that gained around 0.86%. The market remained jittery for a major part of the month due to uncertainties surrounding the future of the healthcare act.

Let’s take a sneak peek into the performance of four major medical product companies that are expected to report earnings early next week.

Abbott Laboratories ABT is scheduled to report second-quarter 2017 results before the opening bell on Jul 20. Abbott has been on a healthy growth trajectory in Established Pharmaceuticals Division (EPD) business. The company has delivered encouraging operational sales growth in the trailing few quarters. However, the absence of any substantial advancement in this division in the recent past has compelled the company to maintain low expectations at high single-digit growth in the yet-to-be reported quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Our proven model does not conclusively show that Abbott is likely to beat earnings this quarter. This is because Abbott Laboratories has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). That is because both the Most Accurate estimate and the Zacks Consensus Estimate are at 60 cents. Abbott’s Zacks Rank #2 increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult. (Read more: Can Abbott Laboratories Pull a Surprise in Q2 Earnings?)

Abbott Laboratories Price and EPS Surprise

 

Abbott Laboratories Price and EPS Surprise | Abbott Laboratories Quote

Intuitive Surgical Inc. ISRG is set to report second-quarter results after the closing bell. We believe that growing adoption of Intuitive Surgical’s da Vinci system among physicians for general surgery, oncology, urology and gynecology procedures is a key growth catalyst for the company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our proven model does not conclusively show that Intuitive Surgical is likely to beat on earnings this quarter. This is because Intuitive Surgical currently has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $4.86. (Read more: Will Intuitive Surgical Surprise in Q2 Earnings?).

Intuitive Surgical, Inc. Price and EPS Surprise

 

Intuitive Surgical, Inc. Price and EPS Surprise | Intuitive Surgical, Inc. Quote

Headquartered in Watertown, MA, athenahealth Inc. ATHN, through its cloud-based network provides services that manage the administrative duties of medical providers. The company’s software platform handles billing management, quality measurement and reporting, clinical documentation and data exchange, patient communication and referrals and many other related tasks.

The company is scheduled to report second-quarter earnings. We believe that the company’s strong product portfolio, expanding physician base and unique business model will boost prospects for the company. However, our proven model does not conclusively show that the company is likely to beat on earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. (Read more: What's in Store for athenahealth in Q2 Earnings?).

athenahealth, Inc. Price and EPS Surprise

 

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

Abaxis, Inc. ABAX is scheduled to report its second-quarter 2017. It is a California-based manufacturer of portable Medical (human) and Veterinary (animal) blood analysis systems that provide clinicians with rapid blood constituent measurements in medical and veterinarian markets worldwide.

Abaxis currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 32 cents.

ABAXIS, Inc. Price and EPS Surprise

 

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

Irrespective of an earnings beat or miss, investors should focus on companies’ fundamentals to make investment decisions. Therefore, don’t forget to check our full write-up on earnings releases of these stocks later.

5 Trades Could Profit ""Big-League"" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
athenahealth, Inc. (ATHN): Free Stock Analysis Report
 
Abbott Laboratories (ABT): Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
 
ABAXIS, Inc. (ABAX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research