First quarter earnings season is well underway with results from 62% of the S&P 500 members already out. By the end of this week, more than 88% of the index's total membership will have reported results. According to our weekly Earnings Trend report, Q1 is on track to be the 4th quarter in a row of earnings declines for the index.
However, Medical is one of the sectors expected to witness earnings and revenue growth in the first quarter. Our Q1 scorecard shows that 60.4% of the Medical sector has reported results with earnings growth of 6.3% and revenue growth of 11.8%.
This week, drug companies like Zoetis Inc. ZTS , Exelixis, Inc. EXEL , McKesson Corporation MCK , Merck & Co. Inc. MRK , Endo International plc ENDP , and AmerisourceBergen Corporation ABC will be reporting results.
Let's see how these stocks are poised ahead of the scheduled announcements.
Zoetis, focused on animal health medicines and vaccines, is scheduled to report first-quarter 2016 results on May 4, before the opening bell. This Zacks Rank #3 (Hold) stock's track record has been impressive with the company beating earnings estimates consistently. With an Earnings ESP of +2.44% and Zacks Rank #3, Zoetis looks poised to beat earnings expectations in the first quarter as well (Read more: Zoetis: Stock Likely to Beat on Earnings in Q1 Again? ).
Biotech company, Exelixis, will also be reporting results on May 4. The company, which is focused on cancer treatments, has a mixed earnings track record. Exelixis' Zacks Rank # 3 and ESP of -8.00% does not conclusively show that the company is likely to beat earnings estimates this quarter. (Read more: Exelixis: What's Ahead for the Stock in Q1 Earnings? ).
Healthcare services and information technology company, McKesson, is scheduled to report fourth-quarter fiscal 2016 results on May 4, after the market closes. McKesson has an impressive track record, having beaten estimates comfortably in all of the last four quarters. But the company's combination of Zacks Rank #4 (Sell) and ESP of -20.81% makes a surprise prediction difficult. (Read more: McKesson Q4 Earnings: Stock Likely To Disappoint ).
While most of its large-cap pharma peers have already reported results, Merck will be presenting first quarter results on May 5, before the opening bell. Focus will remain on the performance of new products and whether they will be able to lessen the impact of genericization and currency movement. Although Merck's track record is pretty impressive, our proven model does not conclusively show that the company is likely to beat earnings estimates this quarter given the combination of Zacks Rank #3 and ESP of 0.00% (Read more: Merck Q1 Earnings: Can the Stock Pull a Surprise? ).
Specialty pharma company, Endo, had already provided weaker-than-expected first quarter guidance last month. Seasonality, investment in new product launches, inventory fluctuations, unfavorable currency movement and continued erosion in the generics base business are some of the factors that will impact first quarter results, which will be out on May 5 after the market closes. Endo's Zacks Rank #4 and ESP of 0.00% does not conclusively show that the company is likely to beat earnings estimates this quarter (Read more: Endo Q1 Earnings: What's in Store for the Stock? ).
Pharmaceutical sourcing and distribution services company, AmerisourceBergen will be reporting second-quarter fiscal 2016 results on May 5, before the opening bell. ABC's Zacks Rank #4 and ESP of 0.00% make a surprise prediction difficult (Read more: AmerisourceBergen Q2 Earnings: Stock to Surprise? ).
Stay tuned and check later on our full write-up on earnings releases of these stocks!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.