Avanos Medical, Inc. AVNS reported adjusted earnings per share (EPS) of 23 cents for first-quarter 2021, beating the Zacks Consensus Estimate by 27.8%. Also, the bottom line rose 43.8% year over year.RevenuesRevenues for the quarter were $180.7 million, which beat the Zacks Consensus Estimate by 2.3%. Moreover, the top line inched up a marginal 0.2% on a year-over-year basis.Q1 Segmental AnalysisChronic CareNet revenues of $121.1 million rose 4.7% year over year.Pain ManagementNet revenues of $59.6 million declined 7.9% on a year-over-year basis.Margin AnalysisGross profit was $91 million, down 10.6% from the prior-year quarter. Gross margin was 50.5% of net revenues, down 607 bps year over year.Adjusted operating profit in the first quarter was $10 million, up from $1.6 million in the year-ago quarter. Adjusted operating margin came in at 5.3%, expanding 443 bps year over year.Financial UpdateThe company exited the first quarter of 2021 with cash and cash equivalents worth $100.1 million compared with $111.5 million in the fourth quarter of 2020.Net cash used in operating activities at the end of the first quarter totaled $3.3 million compared with net cash utilized in operating activities of $5.8 million in the prior-year quarter. AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise AVANOS MEDICAL, INC. price-consensus-eps-surprise-chart | AVANOS MEDICAL, INC. Quote GuidanceThe company projected 2021 net sales to increase 2-4% on constant currency basis from the 2020 reported level. The Zacks Consensus Estimate for revenues is pegged at $736.5 million.The adjusted EPS for 2021 is projected between $1.10 and $1.25. The Zacks Consensus Estimate for the same stands at $1.19.Summing UpAvanos exited the first quarter on a strong note. The company continues to gain from its core segment Chronic Care. Also, CORPAK and NeoMed products contributed strongly to its earnings. Further, a rise in global demand for Respiratory Health amid the pandemic aided the company’s quarterly performance. The expansion in adjusted operating margin is another plus.However, contraction in gross margin remains a woe. Also, the company’s Pain Management unit performed weakly. Moreover, being a pure-play MedTech company, it faces stiff competition from other industry players.Zacks Rank and Key PicksAvanos currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Boston Scientific Corp. BSX, Integer Holdings Corp. ITGR and HCA Healthcare, Inc. HCA, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.Zacks Top 10 Stocks for 2021In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2021 today >>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 Boston Scientific Corporation (BSX): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research