Medical Product Earnings On Jul 21: ABAX, ATHN, NURO, SYK

Medical is one of the seven sectors in the S&P 500 that is expected to report earnings growth in the second quarter.

As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 5.4% from the year-ago quarter on revenues that are estimated to decline 0.5%.

On the other hand, Medical is estimated to report earnings growth of 0.5% on revenue growth of 7.7%. Medical product is an important component of the medical sector and is expected to follow the same earnings growth trajectory in the quarter.

Here we take a sneak peek into four major medical product companies lined up to report earnings on Jul 21.

Stryker Corporation (NYSE:SYK) is set to report its quarterly figures, after market close. The company’s expanding product portfolio is a key catalyst in our view. Moreover, back-to-back acquisitions of the likes of Physio-Control International, Synergetics USA and Sage Products LLC are expected to drive overall growth.

However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 (Hold) and Earnings ESP of 0.00%.

That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

athenahealth (NASDAQ:ATHN) is scheduled to report second-quarter earnings, after the closing bell. We believe that the company’s strong product portfolio, expanding physician base and unique business model will enhance the growth prospects of the company.

However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%.

Manufacturer of portable Medical (human) and Veterinary (animal) blood analysis systems, Abaxis Inc (NASDAQ:ABAX) is expected to report results after market close. The company is a leading name in the veterinary market, thanks to its consistent strong sales from veterinary consumables business franchises. Moreover, the strong portfolio of consumable products looks promising.

However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%.

We also note that Abaxis’ results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 8.1%.

NeuroMetrix Inc. (NASDAQ:NURO) develops wearable medical technology and point-of-care tests. We believe the company has got significant growth opportunities, primarily driven by the business units of Advance NCS system, SENSUS pain management system, DPNCheck and Quell.

Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%.