Published on 6 May 2024 on Zacks via Yahoo Finance

Will These 5 Medical Device Stocks Beat This Earnings Season?

We are currently in the middle of the first quarter of 2024 earnings season for the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), with several MedTech players having already released their quarterly results. After initial encouraging quarterly results, despite companies still navigating ongoing macroeconomic headwinds, there has been a reversal in the performances. The sector’s quarterly earnings are projected to decline year over year, primarily due to worldwide geopolitical issues and healthcare labor shortages.

The latest Earnings Preview indicates that 55% of the companies in the Medical sector, constituting nearly 78% of the sector’s market capitalization, reported earnings until May 1. Of these, 75.8% beat earnings and revenue estimates. Earnings declined 31.2% year over year despite 4.4% higher revenues. 93.9% of the companies beat earnings, while 75.8% beat revenue estimates, which were already down because of the ongoing macroeconomic issues.