Avanos Medical, Inc. AVNS reported adjusted earnings per share (EPS) of 16 cents in first-quarter 2020, which missed the Zacks Consensus Estimate of 17 cents by 5.9%. However, the bottom line improved 6.7% from the prior-year quarter.Revenues of this Zacks Rank #3 (Hold) company were $180.4 million, which beat the Zacks Consensus Estimate by 4%. The top line also improved 9.9% on a year-over-year basis.Q1 Segmental AnalysisChronic CareNet revenues at this segment of $115.7 million rose 15.7% year over year.Pain ManagementThe segment reported net revenues of $64.7 million. The metric inched up 0.8% on a year-over-year basis.AVANOS MEDICAL INC Price, Consensus and EPS Surprise AVANOS MEDICAL INC price-consensus-eps-surprise-chart | AVANOS MEDICAL INC QuoteMargin AnalysisAdjusted gross profit came in at $105.6 million, up 4.5% from the prior-year quarter figure. Adjusted gross margin was 58.5% of net revenues, down 310 bps year over year.Research and development expenses totaled $9.4 million, down 7.8% year over year. Selling, general and administrative expenses amounted to $91.1 million, down14.4%.Adjusted operating profit in the first quarter was $14.4 million, up 38.5% from the year-ago quarter.Financial UpdateAs of Mar 31, 2020, cash and cash equivalents totaled $187.7 million, down 8.6% from year-end 2019.Net cash used in operating activities for the three months ended Mar 31, 2020, totaled $5.8 million, compared with $23.1 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rapidly evolving healthcare environment and the ongoing uncertainties related to the COVID-19 pandemic, the company has withdrawn its previously issued (provided on Feb 25, 2020) full-year 2020 outlook.Summing UpAvanos exited the first quarter on a mixed note. The company continues to gain from core segments — Chronic Care and Pain Management. NeoMed and Summit buyouts contributed 7% to the results. The company saw higher sales volume in Interventional Pain from COOLIEF through mid-March. 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. The company witnessed lower volume in Acute Pain and Digestive Health. 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 Aphria Inc. APHA, Biogen Inc. BIIB and Eli Lilly and Company LLY.Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, beating the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million surpassed the consensus mark by 14.6%. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.Eli Lilly reported first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.Biggest Tech Breakthrough in a GenerationBe among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.See 8 breakthrough stocks now>>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 Biogen Inc (BIIB): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AVANOS MEDICAL INC (AVNS): Free Stock Analysis Report Aphria Inc (APHA): Free Stock Analysis Report To read this article on Zacks.com click here.