Medical Products Stock Earnings on Aug 10: CGC, SDGR & More
The earnings season so far has highlighted the Medical sector’s (one of the 16 broad Zacks sectors within the Zacks Industry classification) resilience toward the ongoing COVID-19 pandemic compared to the other sectors. However, unlike the first-quarter, which had witnessed partial impact of the COVID-19 pandemic, the second quarter bore the brunt of it.
Manufacturing and supply chain disruptions are likely to have put substantial pressure on the performance of the sector players in the second quarter. Also, companies depending on elective and non-critical procedures (orthopaedic, cardiac and dental comprising the major portion) have been hit significantly. Procedure volume and system replacement disruption intensified in the second quarter, consequently might get reflected in the quarterly results.
Integral to the broader Medical sector, Medical Products companies’ growth is likely to have taken hit owing to the pandemic and associated stay-at-home restrictions. Nonetheless, most of them have been gaining from this public health crisis. These companies have been able to partially mitigate the downsides on the back of significant market adoption of their COVID-19-related healthcare-support products and services. Also, this sector’s new COVID-19-related healthcare offerings have been widely adopted, thereby may have contributed to the second-quarter performance.
Going by the latest Earnings Preview, this sector’s total second-quarter earnings are expected to increase 1.9%, while revenues are projected to exhibit growth of 3.4%.
Let us take a look at five Medical Product companies that are scheduled to announce results on Aug 10.
Canopy Growth Corporation CGC, although well positioned in the Canadian recreational cannabis market on robust customer demand, has lately been witnessing pandemic-led business disruptions. This is likely to have impacted the company’s first-quarter fiscal 2021 performance. Nonetheless, Canopy Growth launched 510 vape cartridges under the Tweed in TWD brands. Further, the Tokyo Smoke Luma pod-based vape devices, Luma Go pods and Pause pods, have been made available in the Canadian recreational market. This might get reflected in the results of the quarter to be reported.
(Read more: Canopy Growth to Report Q1 Earnings: What’s in Store?)
Our proven model does not conclusively predict an earnings beat for Canopy Growth 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. But that’s not the case here. 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 -15.28%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canopy Growth Corporation Price and EPS Surprise
Canopy Growth Corporation price-eps-surprise | Canopy Growth Corporation Quote
Schrodinger, Inc. SDGR is likely to have recorded revenue growth in second-quarter 2020 owing to higher software revenues. Notably, continued trends of the higher adoption of the company’s software by pharmaceutical biotech and industrial companies may have contributed to the revenue growth.
Schrodinger has an Earnings ESP of 0.00% and a Zacks Rank #2.
Schrodinger, Inc. Price and EPS Surprise
Schrodinger, Inc. price-eps-surprise | Schrodinger, Inc. Quote
Integra LifeSciences Holdings Corporation IART is likely to have witnessed a decline in revenues in second-quarter 2020 due to a fall in surgical procedures on account of the COVID-19 pandemic. However, within the Orthopedics and Tissue Technologies (OTT) segment, AmnioExcel and SurgiMend might have performed robustly in the second quarter, courtesy of an uptick in supplies resulting from capital investments initiated last year at the Boston and Memphis facilities.
Integra has an Earnings ESP of +20.69% and a Zacks Rank #3.
Integra LifeSciences Holdings Corporation Price and EPS Surprise
Integra LifeSciences Holdings Corporation price-eps-surprise | Integra LifeSciences Holdings Corporation Quote
ICU Medical, Inc.’s ICUI products are directly tied to hospital admissions, which witnessed the impact of the COVID-19 pandemic, due to a fall in elective procedures and ER visits. Hence, the company’s second-quarter performance is likely to reflect the same.
ICU Medical has an Earnings ESP of 0.00% and a Zacks Rank #3.
ICU Medical, Inc. Price and EPS Surprise
ICU Medical, Inc. price-eps-surprise | ICU Medical, Inc. Quote
NanoString Technologies, Inc. NSTG has maintained its momentum in GeoMx launch in spite of the near-term challenges faced by its nCounter business. This is likely to get reflected in the company’s second-quarter 2020 results. The company might have witnessed revenue growth in the to-be-reported quarter primarily driven by GeoMx.
NanoString Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3.
NanoString Technologies, Inc. Price and EPS Surprise
NanoString Technologies, Inc. price-eps-surprise | NanoString Technologies, Inc. Quote
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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
Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
ICU Medical, Inc. (ICUI) : Free Stock Analysis Report
NanoString Technologies, Inc. (NSTG) : Free Stock Analysis Report
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
Schrodinger, Inc. (SDGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
