Medical Product Q1 Earnings Due On May 2: BDX, DXCM & More

The first-quarter earnings season has gathered pace, with results from 288 S&P 500 members or 63.8% of the index’s total market capitalization already out (as of April 28).

As per the latest Earnings Preview, total earnings for these companies are up 13.7% from the same period last year on 8.2% higher revenues, with 76.4% beating EPS estimates and 68.1% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 55.2%.

For the remaining 212 index members (combined with the already reported 288 index members), earnings are estimated to improve 11.2% on 6.2% higher revenues this season. Notably, this could be the third straight quarter of earnings growth after five quarters of back-to-back decline. The current week is set to see a plethora of earnings releases as many bigwigs are lined up to report their quarterly numbers. This week will bring in results from more than 1000 companies, including 126 from the S&P 500 index.

Coming to the Medical universe, this is one of the major broader sectors among the 16 Zacks sectors in the S&P 500 cohort that are expected to report earnings growth in the first quarter. The medical product sector shines bright at the moment owing to the prevalence of minimally invasive surgeries, liquid biopsy tests, and use of IT for ensuring quick and improved patient care among other things. Furthermore, cost-effective products and techniques targeting emerging markets raise optimism.

Here, we take a sneak peek into four Medical stocks set to report their quarterly figures on May 2:

Based in Franklin Lakes, NJ, Becton, Dickinson and Company (NYSE:BDX) , commonly known as BD, is a medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents.

Our proven model conclusively shows that Becton, Dickinson is likely to beat on earnings in first-quarter fiscal 2017. This is because the company currently has an Earnings ESP of +0.45% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BD's innovative product line, number of regulatory approvals both in the U.S. and international markets, and strategic partnerships are likely to boost its growth trajectory (read more: Is a Surprise Coming for Becton This Earnings Season?).

DexCom, Inc. (NASDAQ:DXCM) is scheduled to report first-quarter 2017 numbers on May 2. This medical device company is focused on the design, development and commercialization of continuous glucose monitoring systems. Intensifying competition, entry of new products, reluctance on the part of physicians and patients to adopt DexCom’s products, reimbursement risks, supply constraints and working capital problems are the key concerns.

DexCom currently has a Zacks Rank #3 (Hold) and an Earnings ESP of -10.91%. That is because the Most Accurate estimate stands at a loss of 61 cents while the Zacks Consensus Estimate is pegged at a loss of 55 cents. Hence, we cannot conclusively predict that DexCom is likely to beat estimates this quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Owens & Minor, Inc. (NYSE:OMI) is set to report first-quarter figures on May 2, after market close. This is a global healthcare services company that provides vital supply chain services to healthcare providers and manufacturers of healthcare products. It also provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants.

Our proven model does not conclusively show that Owens & Minor is likely to beat on earnings in first-quarter fiscal 2017. This is because the company currently has an Earnings ESP of 0.00% and a Zacks Rank #3. This makes surprise prediction difficult.

Halyard Health Inc. (NYSE:HYH) is expected to release first-quarter fiscal 2017 financial numbers on May 2. Headquartered in Alpharetta, GA, Halyard develops, manufacture and market clinical solutions that improve medical outcomes and business performance in more than 100 countries.

Halyard Health is unlikely to surprise as it currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. Both the Most Accurate estimate and the Zacks Consensus Estimate stands at 43 cents. Also, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement.

Sell These Stocks. Now.

Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks ""Strong Sells"" absolutely free >>