Avanos Medical, Inc. AVNS reported adjusted earnings per share (EPS) of 13 cents in second-quarter 2020, against the Zacks Consensus Estimate of a loss of 8 cents. However, the bottom line declined 53.6% from the prior-year quarter.Revenues of this Zacks Rank #3 (Hold) company were $163.7 million, which beat the Zacks Consensus Estimate by 10.2%. The top line, however, fell 4.9% on a year-over-year basis.Q2 Segmental AnalysisChronic CareNet revenues at this segment of $120.2 million rose 17.5% year over year.AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise AVANOS MEDICAL, INC. price-consensus-eps-surprise-chart | AVANOS MEDICAL, INC. QuotePain ManagementThe segment reported net revenues of $43.5 million. The metric declined 37.8% on a year-over-year basis.Margin AnalysisAdjusted gross profit was $91.2 million, down 11.8% from the prior-year quarter. Adjusted gross margin was 55.7% of net revenues, down 430 bps year over year.Research and development expenses totaled $7.7 million, down 18.9% year over year. Selling, general and administrative expenses amounted to $76.9 million, down 18.8%.Adjusted operating profit in the second quarter was $12.7 million, down 34.9% from the year-ago quarter.Financial UpdateAs of Jun 30, 2020, cash and cash equivalents totaled $185 million, down 1.4% on a sequential basis.Net cash provided in operating activities for the three months ended Jun 30, 2020, totaled $1.1 million, compared with net cash utilized in operating activities of $31.9 million in the prior-year quarter.GuidanceIn view of the rapidly evolving healthcare environment and the ongoing uncertainties related to the COVID-19 pandemic, the company has withdrawn its previously issued (provided on Feb 25, 2020) full-year 2020 outlook. At this point of time the company is unable to fully quantify the scope or duration of the impact of the pandemic on its financial results.Summing UpAvanos exited the second quarter on a strong note. The company continues to gain from its core segment — Chronic Care. NeoMed and Summit buyouts contributed 6% to the results. Further, rise in global demand in Respiratory Health owing to the pandemic positively impacted the performance.However, the contraction in gross margin remains a worrisome. Also, the company’s Pain Management unit performed weakly. Further, the company witnessed lower volume in Acute Pain and Interventional Pain owing to fall in elective procedures. Moreover, being a pure-play MedTech company, it faces stiff competition from other industry players.Key PicksSome better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and West Pharmaceutical Services, Inc. WST. While PerkinElmer sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and West Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion surpassed the consensus mark by 0.1%.West Pharmaceuticals reported second-quarter 2020 adjusted EPS of $1.25, outpacing the Zacks Consensus Estimate of 91 cents. Revenues of $527.2 million surpassed the consensus estimate by 6.9%.The Hottest Tech Mega-Trend of AllLast year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PerkinElmer, Inc. (PKI): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research