With results from 476 S&P 500 members already out, the third-quarter earnings season is almost drawing to a close. According to our latest Earnings Preview report, the scorecard so far has portrayed a much better picture with the third quarter successfully emerging as the first to witness earnings growth after five back-to-back quarters of declines for the S&P 500 index. With a handful of earnings announcements on the way, this season has so far confirmed an improving trend.
Encouragingly, results from 94.9% of the Medical sector's market cap in the S&P 500 index are already out, with 63.3% beating EPS estimates while 55.1% surpassed revenue expectations. The earnings growth rate was 6.2% year over year on account of a 7.5% rise in revenues.
What's in Store for the Med-Product Space?
Medical Product, a specialized sub-sector within the broader Medical sector, is showing a lot of potential as well. This is impressive given the severe economic instability, fierce competition, and increasing cost-related hazards leading to regulatory complexities. The success of the Medical Product industry comes on the back of successful execution of some top strategic priorities, which include R&D and product development; strategic M&A and alliances along with a focus on emerging market expansion.
Let's take a look at the Medical Product stocks slated to release their quarterly reports on Nov 22:
Medtronic plcMDT : Headquartered in Ireland, Medtronic is one of the largest medical device companies operating in Cardiac & Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group. There have been multiple developments which should be reflected in Medtronic's results in the to-be-reported quarter. Under the Cardiac and vascular group, Medtronic received FDA approval for its IN.PACT Admiral drug-coated balloon, MRI Scan-Compatible Cardiac Devices and MRI CRT-D Device. Under the Diabetes Group, the company gained FDA approval for its Enlite Sensor and MiniMed 670G system for diabetic care. Within the Minimally Invasive Technologies Group, Medtronic received FDA approval for StealthStation Cranial Software to support deep brain stimulation (DBS) lead placement.
Medtronic currently has an Earnings ESP of 0.00% with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at $1.11. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 to beat earnings. While a favorable Zacks Rank increases the predictive power of ESP, a 0.00% ESP makes surprise prediction difficult. (Read More: Is a Surprise in Store for Medtronic in Q2 Earnings? )
MEDTRONIC Price, Consensus and EPS Surprise
Patterson Companies, Inc.PDCO : Headquartered in St. Paul, MN, Patterson Companies is one of the leading distributors of dental and animal health products. We believe a growing and diversified product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are the key catalysts for the company.
However, we cannot conclusively predict an earnings beat for Patterson as it carries a Zacks Rank #3 and an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 61 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises. (Read More: Patterson Companies Q2 Earnings: What's in Store? )
PATTERSON COS Price, Consensus and EPS Surprise
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