Solventum SOLV is scheduled to release third-quarter 2024 results on Nov. 7, after market close. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 6.85%. SOLV delivered a trailing four-quarter average earnings surprise of 15.7%.
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SOLV Q3 Estimates
Currently, the consensus estimate for revenues is pegged at $2.05 billion. The consensus mark for earnings is pinned at $1.38 per share.
Factors to Note
SOLV was spun off from diversified technology firm 3M Company. It started trading publicly on April 1, 2024. The company continues with separation activities, which include capital expenditure planning to drive top-line growth organically as well as through acquisitions. These actions are likely to put pressure on operating margin over the short-term and might have hurt earnings in the third quarter. Inflationary pressure and rising interest payments are likely to have hurt earnings as well.
Although Solventum registered higher volume during the second quarter, the company’s sales volume declined without the backorder benefit. The company has been facing declining volume for the past few quarters. Its revenue growth has been below par in several markets, with flat and declining volumes over the past two years. The declining volume trend is likely to have kept top-line growth under pressure in the third quarter as well. Meanwhile, foreign currency fluctuation might have been a headwind for the company.
However, Solventum’s top line is expected to have benefited from improving pricing for its products. The company’s volume might have improved sequentially as it continues to serve its backorders. On its second-quarterearnings call the company raised its full-year revenues growth expectation to 1% compared with the earlier guidance of flat to 2% decline in sales.
Solventum Corporation Price and EPS Surprise
Solventum Corporation price-eps-surprise | Solventum Corporation Quote
Earnings Beat Likely
Our proven model predicts an earnings beat for Solventum this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The company has an Earnings ESP of +1.46% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.
Brainsway BWAY has an Earnings ESP of +100.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 69.4% year to date. BWAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 139.68%.
Haemonetics HAE has an Earnings ESP of +0.18% and a Zacks Rank of 2 at present.
The stock fell 12.3% year to date. HAE’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 3.46%.
ICU Medical ICUI has an Earnings ESP of +2.67% and a Zacks Rank of 3 at present.
The stock has risen 73.8% year to date. ICUI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 32.06%.
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ICU Medical, Inc. (ICUI) : Free Stock Analysis Report
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Solventum Corporation (SOLV) : Free Stock Analysis Report
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