From Nasdaq: 2024-04-26 11:30:00

The first-quarter reporting cycle for MedTech companies shows a marginal increase in earnings year over year within the broader Medical sector. Key players have seen market share gains but face challenges from supply chain disruptions and labor shortages. Despite sequential declines, some companies are expected to beat earnings estimates in the ongoing cycle.

Legacy-based business sales volumes have improved year over year, particularly in Wearable Tech, Women’s Health, and Precision Medicine spaces. However, diagnostic testing demand has decreased compared to the previous year’s rush due to the ongoing geopolitical tension and macroeconomic threats globally.

Earnings for the Medical sector are expected to decline 7.6% in the first quarter despite 6.3% revenue growth. Boston Scientific and LabCorp are examples of companies experiencing market share gains and revenue growth but facing challenges such as rising costs and declining operating margins.

Zacks methodology focuses on stocks with positive Earnings ESP and Zacks Ranks of #1, #2, or #3. Three MedTech stocks, including 10x Genomics, Cardinal Health, and Hologic, are expected to beat earnings estimates in this reporting cycle based on their market share gains and strong business performances despite macroeconomic challenges.

10x Genomics, focused on life science solutions, is expected to gain market share with its integrated solutions and new product launches. Cardinal Health anticipates growth from strong pharmaceutical sales, while Hologic expects growth in diagnostics and Breast Health segments. These companies have strong Earnings ESP and Zacks Rank, increasing the possibility of an earnings surprise in the upcoming quarter.



Read more at Nasdaq:: 3 Medical Products Stocks Set to Beat This Earnings Season