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MedTech Stocks Q1 Earnings Preview: AXDX, CFMS, SENS

With more than 87% of S&P 500 members having reported their Q1 earnings as of May 6, 2016, the overall earnings picture that emerges is quite unimpressive. Macroeconomic and socio-political factors played spoilsport, dealing a blow to crucial sectors in the S&P 500 cohort like Finance, Energy and Technology.

Nevertheless, even in the face of such adversities, Medical retains some sheen (being third among the 16 Zacks sectors in terms of market capitalization) and is expected to post a bright Q1 scorecard. Notably, 79.6% of the medical stocks which have already released earnings have beat earnings while 69.4% topped the revenue estimate. (For more information on this, please check our Zacks Earnings Trends Report). MedTech, constituting a significant part of this broader Medical sector, is thus expected to reflect similar strength in its Q1 scorecard.

It is worth mentioning herein that our proven model shows that a company is likely to beat earnings when it has the right combination of two key ingredients: a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). However, none of the companies mentioned below bear this favorable combination.

All the three stocks carry a Zacks Rank #3, along with an Earnings ESP of 0.00%; which does not conclusively predict an earnings beat in Q1.

Looking ahead, of the 89 companies slated to release their results on May 12, we take a look at how these 3 MedTech stocks are poised ahead of the scheduled announcements.

ConforMIS, Inc. CFMS is a medical technology company which develops, manufactures and sells customized joint replacement implants. The company’s well-known customized knee replacement products include iTotal CR, iTotal PS, iDuo iUni and iTotal Hip – a hip replacement device.

This stock does not have an impressive record with respect to earnings as it has missed estimates in two of the last four quarters.

Accelerate Diagnostics, Inc. AXDX is an in vitro diagnostics company which has an investigational ID/AST platform that utilizes proprietary molecular and phenotypic detection technologies to significantly decrease the time to analysis while achieving high sensitivity and specificity.

The Zacks Consensus Estimate have remained steady at a loss of 25 cents per share over the last 90 days.

Senseonics Holdings, Inc. SENS is a medical technology company focused on the design, development and commercialization of glucose monitoring systems for people with diabetes. Its first generation continuous glucose monitoring system, Eversense, measures glucose levels in diabetic patients.

The Zacks Consensus Estimate for this company remained steady at a loss of 7 cents per share over the last 7 days.

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