We now have Q3 results from 116 S&P 500 members that combined account for 23.2% of the index's total market capitalization as per the latest Earnings Preview report. Total earnings for these 116 companies are up 3.3% from the same period last year on 1.8% higher revenues, with 80.2% beating EPS estimates and 62.9% coming ahead of top-line expectations.
Healthcare comes under the Medical sector and is one of the seven sectors in the S&P 500 group. So far, 11.3% of the total Medical sector companies have reported third-quarter results. The sector is expected to deliver 3.7% earnings growth on 7.4% higher revenues this time around. This compares favorably with the projected 0.1% earnings growth on a 1.5% increase in revenues in the S&P 500 index.
Here, we take a sneak peek into four healthcare stocks scheduled to report their third-quarter figures on Oct 26:
Universal Health ServicesUHS through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Last quarter, Universal Health Services reported earnings of $1.94 per share, in line with the Zacks Consensus Estimate. It carries a Zacks Rank #3 (Hold). The company's Most Accurate Estimate stands at $1.59 per share, lower than the Zacks Consensus Estimate of $1.67 per share.So, the Earnings ESP for the company is-4.79%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
With respect to the surprise trend, though Universal Health Services surpassed expectations in only one of the last four quarters, it has managed to post an average beat of 0.53%.
The company's acquisition of Desert View Regional Medical Center, a Nevada-based, twenty-five bed community care hospital of Rural Health Group (RHG), is a major catalyst in our view.
We believe the Desert View integration will fortify Universal Health's footprint in Nevada where it already has Northern Nevada Medical Center and six acute-care operating wings in Las Vegas. As per management, this acquisition will not only strengthen Universal Health's acute-care business in the existing markets but will also pave a way for the opening of a new 142-bed hospital in Henderson, in the fourth quarter of this fiscal.(Read more United Health: What's in Store this Earnings Season? )
UNIVL HLTH SVCS Price and EPS Surprise
VCA Inc.WOOF operates as an animal healthcare company in the United States and Canada. It operates through two segments - Animal Hospital and Laboratory. Last quarter, this company beat the estimate by 6.10%. VCA Inc. has an Earnings ESP of +1.24% and a Zacks Rank #2 (Buy). The Most Accurate Estimate stands at 82 cents per share a penny higher than the Zacks Consensus Estimate of 81 cents per share.
With respect to the surprise trend, VCA Inc. surpassed expectations in each of the last four quarters, with an average beat of 6.12%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
VCA INC Price and EPS Surprise
Chemed CorporationCHE provides hospice and palliative care services in the United States. It operates through two segments, VITAS and Roto-Rooter. The company offers its services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. Last quarter, this company missed the estimate by 0.58%. Chemed Corporation has an Earnings ESP of 0.00% as the Most Accurate Estimate stands at $1.80 per share, in line with the Zacks Consensus Estimate. The company carries a Zacks Rank #3. With respect to the surprise trend, Chemed Corporation surpassed expectations in two out of the last four quarters, with an average beat of 0.25%.
CHEMED CORP Price and EPS Surprise
PAREXEL International CorporationPRXL , a biopharmaceutical services company, provides clinical research, clinical logistics, medical communications, consulting, commercialization, and advanced technology products and services for the pharmaceutical, biotechnology, and medical device industries worldwide. Last quarter, this company beat the estimate by 2.17%. PAREXEL International has an Earnings ESP of 0.00% as the Most Accurate Estimate stands at 86 cents per share, in line with the Zacks Consensus Estimate. The company has a Zacks Rank #4 (Sell).
With respect to the surprise trend, PAREXEL International surpassed expectations in three out of the last four quarters, with an average beat of 9.58%.
PAREXEL INTL CP Price and EPS Surprise
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