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What's in the Cards for Livongo Health's (LVGO) Q2 Earnings?

Livongo Health, Inc. LVGO is slated to release second-quarter 2020 results on Aug 6, after the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 175%. Further, it beat estimates in each of the trailing four quarters, the average surprise being 95.2%.

Q2 Estimates

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $84.3 million, suggesting growth of 106.2% from the prior-year quarter. The same for earnings per share stands at 1 cent.

Factors to Note

In March, the Health Transformation Alliance (HTA) and Welltok developed a new curated marketplace for numerous health and wellbeing programs on behalf of over 50 HTA member/owners across the United States. For this new program, Livongo Health was selected to become the first partner and this represents a prospective and promising new avenue for the company.

Further, at the request of numerous health systems, the FDA has approved an emergency period waiver that will allow any inpatient facility in the United States to utilize Livongo Health’s cellular-enabled diabetes meter. This will be of help to people infected with COVID-19 to use the company’s remote blood glucose meter within the hospital setting.

Livongo Health, Inc. Price and EPS Surprise

Livongo Health, Inc. Price and EPS Surprise

Livongo Health, Inc. price-eps-surprise | Livongo Health, Inc. Quote

During the first quarter, the company collaborated with Prognos Health to accelerate clinical laboratory data, which will allow members enrolled with the company to share their test results from leading laboratories with Livongo Health on an opt-in basis.

During the same period, the company also partnered with leading continuous glucose monitoring (CGM) makers — DexCom — wherein Livongo Health will be able to stream data from Dexcom G6 to its data engine.

Apart from integrating behavioral health into the Livongo platform, the company has partnered with telehealth providers in order to help its members in addressing medication changes, acute care or behavioral health needs with a medical professional through its platform.

All the aforementioned developments are likely to have positively impacted the company’s second-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, 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. This is the case here as you will see.

Earnings ESP: Livongo Health has an Earnings ESP of +124.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Livongo Health carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals plc GWPH has an Earnings ESP of +17.38% and a Zacks Rank of 3.

Nevro Corp. NVRO has an Earnings ESP of +15.17% and a Zacks Rank of 3.

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