Last week, the medical sector’s fourth quarter earnings season began.According to the latest earnings preview, Quarterly results were weak year-on-year, reflecting ongoing macroeconomic headwinds and record levels of global inflationary pressures. His 8.9% of companies in the healthcare sector, which make up his 28.4% of the sector’s market capitalization, reported earnings through Jan. 25, according to the sector’s scorecard. Earnings increased 5% year-over-year, and earnings increased his 7%.
Overall, medical sector revenues are expected to plummet 10.9% in the fourth quarter with revenues down 2.9%. This compares with a 3.3% decline in reported revenues in the third quarter and a 5.1% increase in revenues.
The forecast reflects ongoing global inflationary pressures leading to very tight conditions related to raw materials, labor costs and freight rates that are again plaguing the industry. Most of the players in this space have seen higher raw material costs and other expense burdens throughout the fourth quarter. In addition to this, labor supply constraints and global supply chain hazards with rising labor costs are expected to moderate the growth process.
medical device quarterly synopsis
Critical to overall business growth for the broader healthcare sector, medical device or Sachs defined medical products companies, saw a significant decline in COVID-led severity across the United States and other developed countries compared to last year. During the fourth quarter, a new wave of coronavirus spread rapidly across various developed and emerging economies. Still, the company’s success in dealing with years of stagnant demand may have resulted in higher year-over-year growth within the industry players’ legacy-based businesses.
Also, diagnostic testing companies saw a continual increase in test demand due to an increase in new cases in certain regions, which may have led to business growth for many companies.
Overall, the recovery in enterprise legacy-based business and testing demand through Q4 is expected to be impressive.medical device companies like Boston Scientific BSX, thermo fisher scientific TMOs, Hologic HOLX and prepare the technology ALGN may have been positively impacted by these factors in the fourth quarter.
However, as previously mentioned, replicating the overall market trend, the sector’s fourth quarter results are likely to be significantly weakened by ongoing macroeconomic threats in the US and elsewhere. Despite the reopening of the economy, the global investment scenario has again been challenged by a vicious circle of deteriorating inflation and aggressive interest rate hikes. Industry-wide trends so far show that within medical devices, logistics challenges and rising unit prices are weighing on corporate profitability for equities as a whole. Meanwhile, tightening monetary policy has significantly changed consumer tastes, and demand for the non-essential category of the medical device business is again weakening. Q4 vs. last quarter.
Let’s take a look at the three MedTech players who will announce their results on February 1st.
Boston Scientific: Boston Scientific expects fourth quarter 2022 operating revenue growth to be in the range of 8.5% to 10.5% year-over-year. That doesn’t include about 650 basis points of headwinds based on exchange rates at the time of the third quarter earnings release. Meanwhile, the BSX top line may be improving year-on-year as non-COVID elective medical procedures are in full swing in the US and elsewhere around the world. Given an improvement scenario involving expansion into faster-growing markets, globalization efforts, and enhanced digital capabilities, Boston Scientific is well positioned to record Q4 2022 results.
(Read more: Will Boston Scientific Beat Fourth-Quarter Earnings Guidance?)
The Zacks Consensus estimate of total revenue for the fourth quarter of $3.24 billion suggests a 3.6% increase from the reported figure for the same period last year. BSX’s consensus mark for earnings of 47 cents per share represents an increase of 4.4% from the reported value for the same period last year.
Based on proven models, stocks with a combination of positive earnings ESP and a Zacks rank of 1 (strong buy), 2 (buy), or 3 (hold) are more likely to outperform estimates. As you can see below, this is exactly the case.
BSX has a revenue ESP of +2.64% and a Zacks rank of #3. Earnings ESP filters help you find the best stocks to buy or sell before they’re reported.
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Boston Scientific Pricing and EPS Surprise
Boston Scientific Corporation Pricing – EPS – Surprise | Boston Scientific Quote
thermo fisher: Throughout the fourth quarter, Thermo Fisher’s Analytical Instruments segment is expected to generate strong sales, supported by electron microscopy, chromatography, mass spectrometry, chemical analysis, research and safety market channel businesses. The company is expected to achieve record growth with a favorable business mix and new entrants. The company evolved his Orbitrap portfolio to launch the Orbitrap Ascend Tribrid mass spectrometer. For electron microscopy, we introduced the Thermo Scientific Arctis Cryo-Plasma Focused Ion Beam, an automated microscope that streamlines cryo-electron tomography. All of these are expected to contribute to Thermo Fisher’s fourth quarter top line.
(Read more: What is Thermo Fisher’s forecast for Q4 earnings?)
The Zacks consensus estimate for Thermo Fisher’s fourth quarter earnings is pegged at $10.36 billion. This represents a decrease of 3.2% from the previous year’s figures. The consensus forecast for earnings per share is pegged at $5.19, suggesting a 20.6% decline from the number reported last year.
TMO has a revenue ESP of -0.62% and ranks 3rd in the Zacks rank.
Thermo Fisher Scientific Inc. Pricing and EPS Surprise
Thermo Fisher Scientific Inc. Pricing – eps – Surprise | Thermo Fisher Scientific Quote
Hologic: In the first quarter of fiscal year 2023, Hologic is expected to experience strong growth in its diagnostics business (excluding COVID) due to increased adoption of Panther devices and expansion of Panther’s installed base. During its fourth quarter earnings update, Hologic noted that the company has approximately 3,250 Panthers devices deployed around the world. Its performance may have been facilitated by both conventional and novel assays, namely the BBCVTV vaginitis panel, MGen, CTMG and the Panther Fusion respiration menu. However, Hologic’s molecular diagnostics business may have been impacted by the drop in COVID-related sales, as COVID testing has declined significantly over the past few months.
(Read more: Hologic to report first-quarter earnings: What’s in the card?)
The Zacks consensus estimate for Hologic’s first quarter earnings is pegged at $980.9 million. This represents a 33.3% decrease from the previous year’s figures. The consensus forecast for earnings per share is pegged at 96 cents, suggesting a 55.8% decline from the previous year’s reported figure.
HOLX has a revenue ESP of +5.05% and Zack ranks second.
Hologic, Inc. Pricing and EPS Surprise
Hologic, Inc. Price – eps – Surprise | Hologic, Inc. Quote
prepare the technology: Align technology may have benefited from increased shipments of clear aligners to Invisalign physicians worldwide. In the last reported quarter, shipments of Invisalign cases increased in nearly every market, led by Taiwan, Thailand, India and South Korea, due to an increase in submitters. Analysts expect this trend to continue in the quarters to be reported and to support sales growth. However, the ongoing conflict in Ukraine and increased exchange rate volatility may have weighed on the recovery and impacted fourth quarter results. The company’s profitability is expected to decline in the fourth quarter due to staff shortages and ongoing inflationary pressures.
The Zachs Consensus estimate for fourth-quarter earnings of $1.52 per share represents a steep 46.3% drop from the number reported last year. The consensus estimate for revenue is pegged at $889.9 million, suggesting a 13.7% decline from the previous year’s reported numbers.
ALGN has a revenue ESP of +2.56% and a Zacks rank of #4 (sales).
Align Technology, Inc. Pricing and EPS Surprise
Align Technology, Inc. Price – eps – Surprise | Align Technology, Inc. Quote
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