Yahoo Finance MedTech Stocks' Q1 Earnings Due on Apr 26: MMSI, CNMD & More
So far, this earnings season has reflected a continued recovery in sales for companies in the Medical sector. Inflationary headwinds, supply chain challenges and labor shortages, however, continued for the sector. These hurt the bottom line amid recovering demand for medical products and services.
Per the latest Earnings Preview, 8.8% of the companies in the Medical sector, comprising 27.5% of the sector’s market capitalization, reported earnings till Apr 19. Each of these companies beat estimates on earnings and revenues. While earnings declined 2.4% year over year, revenues improved 9.8%.
This scorecard highlights the Medical sector’s continued resilience amid an uncertain macroeconomic environment. Throughout the first quarter, the companies saw rising demand for surgery-related procedures.
However, most players in the industry were reeling under continued inflationary pressure across the world. Mounting raw material costs, labor-supply constraints and supply-chain disruptions hampered the entire production and distribution process. Meanwhile, an increase in the prices of products and services must have aided the Medical sector.
Overall, the sector’s first-quarter earnings are expected to decline 22.4%, while sales are likely to increase 1%. This compares with the fourth-quarter reported earnings decline of 6.7% and revenue growth of 4.9%.
Medical Device Quarterly Synopsys
The surge in demand for medical devices, such as diagnostic equipment and procedures, following reopening of economies has led to strong top-line growth. Mergers and acquisitions have also risen as companies seek to expand their portfolios and capabilities. Advancements in technology such as artificial intelligence and robotics have been driving innovation and growth. Medical device companies that have adapted to these changes are likely to have succeeded.
However, these companies continue to be burdened by the global shortage of semiconductor chips that are used in life-saving medical equipment like pacemakers, blood-pressure monitors, insulin pumps and defibrillators. This ongoing challenge is expected to have significantly hampered first-quarter performance across several businesses in the Medical Device industry. Moreover, rising capital cost following multiple interest rate hikes may have adversely impacted the companies’ bottom-line performance.
Overall, the rebound in the base business in the past several months is expected to have been impressive. Medical Device companies like Merit Medical Systems MMSI, CONMED CNMD, Nevro NVRO and Accuray ARAY are likely to have shown improvement in revenues. However, margins are expected to have been hurt.
Let’s take a look at the MedTech players scheduled to announce results on Apr 26.
Merit Medical Systems: Merit Medical’s first-quarter 2023 results are likely to be boosted by continued demand for its products. The U.S. commercial releases of the basixALPHA Inflation Device and the PreludeSYNC EZ Radial Compression Device are likely to have witnessed robust customer adoption since their launches, thereby significantly driving the to-be-reported quarter’s revenues. The company also stands to benefit from the execution of its global growth and profitability plan.
The Zacks Consensus Estimate for Merit Medical’s earnings is pegged at 55 cents per share. The same for revenues stands at $280.8 million.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.
MMSI has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Merit Medical Systems, Inc. Price and EPS Surprise
Merit Medical Systems, Inc. price-eps-surprise | Merit Medical Systems, Inc. Quote
CONMED: CNMD's first-quarter revenues are likely to have been aided by continued demand for its products across all segments. Orthopedics revenues are expected to have gained on the back of robust demand in the United States as well as ex-U.S. markets. Recovery in General surgery is likely to have continued due to rising demand for procedures. However, the impact of a new system’s implementation is yet to be seen. CONMED’s fourth-quarter revenues were significantly hurt due to disruption during the implementation phase that hampered its shipping ability.
The Zacks Consensus Estimate for CONMED’s earnings is pegged at 60 cents per share. The same for revenues stands at $267.3 million.
CNMD has an Earnings ESP of 0.00% and a Zacks Rank #3.
CONMED Corporation Price and EPS Surprise
CONMED Corporation price-eps-surprise | CONMED Corporation Quote
Nevro: An uptick in total U.S. permanent implant procedures and U.S. trial procedures is likely to have driven NVRO’s top-line growth in the soon-to-be-reported quarter. Moreover, the robust performance of the company’s new AI-powered HFX iQ Spinal Cord Stimulation System in the limited market release, coupled with positive feedback from physicians and patients, has raised optimism. However, international revenues are expected to have continued to decline in the first quarter. An unstable business environment owing to inflation and supply-chain pressures is likely to have put pressure on earnings.
The bottom-time estimate for Nevro is pegged at a loss of $1.06. The consensus estimate for revenues stands at $95.3 million.
NVRO, with an Earnings ESP of +0.41% and a Zacks Rank #3, is likely to beat on earnings in its upcoming release.
Nevro Corp. Price and EPS Surprise
Nevro Corp. price-eps-surprise | Nevro Corp. Quote
Accuray: The company’s product revenues are likely to have shown robust growth in the quarter under review. This potential improvement can be attributed to geographical performances and continued strong demand for Accuray’s ClearRT Helical kVCT Imaging for the Radixact System, Synchrony Technology and VOLO Ultra enhancement. However, the current global supply-chain shortages, forex woes and inflationary pressure must have adversely impacted the company’s first-quarter earnings.
The bottom-line estimate for Accuray is pegged at a loss of 1 cent. The consensus mark for revenues stands at $110.9 million.
ARAY has an Earnings ESP of 0.00% and a Zacks Rank #3.
Accuray Incorporated Price and EPS Surprise
Accuray Incorporated price-eps-surprise | Accuray Incorporated Quote
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Accuray Incorporated (ARAY) : Free Stock Analysis Report
CONMED Corporation (CNMD) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
Nevro Corp. (NVRO) : Free Stock Analysis Report
