Wrapping up Q4 earnings, we look at the numbers and key takeaways for the medical devices & supplies - diversified stocks, including CooperCompanies (NASDAQ:COO) and its peers.
The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers.
The 6 medical devices & supplies - diversified stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results.
Weakest Q4: CooperCompanies (NASDAQ:COO)
Founded in 1958, CooperCompanies (NASDAQ:COO) develops and manufactures of products in the eye care and women's health sectors, with its key products including contact lenses and fertility treatments.
CooperCompanies reported revenues of $964.7 million, up 3.6% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with a slight miss of analysts’ organic revenue estimates.
Commenting on the results, Al White, Cooper's President and CEO said, "We started the year on a positive note meeting our revenue expectations and exceeding our operational targets. Moving forward, we remain confident in our ability to deliver strong growth and operational excellence, and this is reflected in our guidance."
CooperCompanies Total Revenue
CooperCompanies delivered the weakest performance against analyst estimates of the whole group. The stock is down 13.3% since reporting and currently trades at $79.01.
Founded in 1979, Boston Scientific (NYSE:BSX) is a medical device company that designs, manufactures, and sells a wide range of technologies used in minimally-invasive medical procedures.
Boston Scientific reported revenues of $4.56 billion, up 22.4% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue estimates.
Boston Scientific Total Revenue
Boston Scientific pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.2% since reporting. It currently trades at $96.01.
Founded in 1888 as a small pharmaceutical company, Abbott Laboratories (NYSE:ABT) develops and sells a wide range of nutrition products, medical devices, and branded pharmaceuticals.
Abbott Laboratories reported revenues of $10.97 billion, up 7.2% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted organic revenue in line with analysts’ estimates.
Interestingly, the stock is up 11.1% since the results and currently trades at $129.68.
Founded in 1982, Neogen (NASDAQ:NEOG) provides a broad range of products and services to ensure food safety and animal health, including diagnostic tests, food safety equipment, and veterinary pharmaceuticals.
Neogen reported revenues of $231.3 million, flat year on year. This print topped analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also produced a decent beat of analysts’ EPS estimates.
Neogen had the slowest revenue growth among its peers. The stock is down 29.7% since reporting and currently trades at $9.20.
Founded in 1941 as a specialty medical products business, Stryker Corporation today designs and sells a wide range of medical devices, equipment, and technology across areas like orthopedics (bones, joints, ligaments, etc.), surgical equipment, and spine.
Stryker reported revenues of $6.44 billion, up 10.7% year on year. This result surpassed analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 8.3% since reporting and currently trades at $362.
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