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Medical Stocks' Earnings to Watch Next Week: TECH, WVE, EARS

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The Q2 earnings season is almost wrapping up with 92.1% (as of Aug 10) of the S&P 500 members having already reported results. A look at the Q2 earnings season scorecard shows that while total earnings for these 454 index members are down 3.7%, revenues have declined 0.7 % from the year-ago period.

For the second quarter, earnings are projected to be down 3.4% from the same period last year on 0.4% lower revenues. Further, this will be the fifth quarter in a row of earnings declines for the index.

Nevertheless, things are not that gloomy as it looks and there has been a modest improvement in this quarter's results. Of the 454 S&P 500 members that have already reported as of Aug 10, an encouraging 71.1% were able to top earnings estimates while 52.9% beat top-line expectations.

Sector-wise, the Technology and Medical sectors recorded the highest proportion of positive surprises. Notably, Medical sector results have been particularly strong so far.

Our Q2 scorecard for the Medical sector shows that 96.2% have reported results with a blended beat of 74% (the percentage of companies that have beaten both earnings and revenue estimates), with the sector registering 5% earnings growth on 9.2% higher revenues.

Per our Earnings Trends report, Medical is one of the nine sectors expected to record positive earnings growth (4.7%) this quarter.

While the majority of medical companies have already released quarterly results, quite a few companies in the sector are still left to declare the same. Let's see what awaits these three medical stocks.

What to Expect from these Medical Stocks?

Headquartered in Minneapolis, MN, Bio-Techne Corp.TECH is one of the leading developers and manufacturers of high quality purified proteins - particularly cytokines and growth factors, antibodies, immunoassays, as well as biologically active small molecules. The company has three reportable business segments - Biotechnology, Clinical Controls and Protein Platforms - all of which serve the life science and diagnostic markets.

BIO-TECHNE CP Price and EPS Surprise

BIO-TECHNE CP Price and EPS Surprise | BIO-TECHNE CP Quote

Bio-Techne's performance has been mixed in the trailing four quarters with an earnings miss in one quarter, in line results in two and a beat in the other. Overall, the company has delivered an average positive earnings surprise of 0.59%. Bio-Techne currently carries a Zacks Rank #3 (Hold). Though the stock's Zacks Rank #3 increases the predictive power of the ESP, its 0.00% Earnings ESP makes a surprise prediction difficult this quarter. The company is scheduled to release fourth-quarter fiscal 2016 results on Aug 17.

WAVE Life Sciences Ltd.WVE is a development-stage biotechnology company which utilizes its innovative and proprietary synthetic chemistry drug development platform to design, develop and commercialize stereopure nucleic acid therapeutics that precisely target the underlying cause of rare and other serious genetically defined diseases. The company has a deep pipeline of multiple modalities including antisense, exon-skipping, and single-stranded RNAi.

WAVE LIFE SCI Price and EPS Surprise

WAVE LIFE SCI Price and EPS Surprise | WAVE LIFE SCI Quote

This Cambridge, MA-based company's track record has also been mixed, having missed estimates on two occasions and surpassed in one. Overall, the company has clocked an average negative surprise of 62.62%. Its Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult for this quarter. The company is expected to report second-quarter results on Aug 15.

Based in Switzerland, Auris Medical Holding AGEARS is a development-stage biopharmaceutical company focused on the development of treatments that address significant unmet needs in otolaryngology. The company's performance has been mixed too with earnings beats in two quarters and miss in the other two. Overall, the company has posted an average positive surprise of 4.53%.

AURIS MEDICAL Price and EPS Surprise

AURIS MEDICAL Price and EPS Surprise | AURIS MEDICAL Quote

Though Auris has a favorable Zacks Rank #2 (Buy), an ESP of 0.00%, makes a surprise prediction uncertain for this quarter. It is expected to release second-quarter results on Aug 17.

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BIO-TECHNE CP (TECH): Free Stock Analysis Report

AURIS MEDICAL (EARS): Free Stock Analysis Report

WAVE LIFE SCI (WVE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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