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National Vision Holdings, Inc. EYE delivered an adjusted EPS (earnings per share) of 12 cents in the third quarter of 2024 compared with 11 cents in the year-ago period. The figure surpassed the Zacks Consensus Estimate of 5 cents.

The GAAP income from continuing operations was 3 cents per share compared to an EPS of 23 cents in the prior-year quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Following the earnings announcement on Nov. 6, shares of EYE dropped 3.1%, closing at $11.82 yesterday.

National Vision’s Q3 Revenues

During the nine months ended Sept. 28, 2024, the company’s Walmart store operations, including the former Legacy reportable segment and components of the Corporate/Other category, met the requirements to be classified as discontinued operations. As of Sept. 28, 2024, the company operates under one reportable segment, Owned & Host.

Net revenues from continuing operations in the third quarter totaled $451.5 million, which missed the Zacks Consensus Estimate by 0.03%.

The top line rose 2.9% from the year-ago quarter’s number, driven by growth from new store sales and Adjusted Comparable Store Sales Growth and the effect of unearned revenues.

In the third quarter, comparable store sales growth was 1.4% year over year. Adjusted comparable store sales growth was 0.9%. National Vision opened 18 new stores and ended the period with 1,231 stores. Overall, the store count rose 4.9% year over year.

National Vision’s Q3 Margin Performance

On a consolidated basis, the gross profit in the third quarter rose 2.6% from the prior-year quarter’s level to $261.6 million. The gross margin expanded 110 basis points (bps) despite a 3.3% rise in the cost of revenues (comprising products, services and plans).

SG&A expenses fell 1.6% year over year to $224 million. The adjusted operating margin was 8.3%, which expanded 207 bps year over year.

National Vision Holdings, Inc. Price, Consensus and EPS Surprise

National Vision Holdings, Inc. price-consensus-eps-surprise-chart | National Vision Holdings, Inc. Quote

National Vision’s Financial Position

National Vision exited the third quarter with cash and cash equivalents of $81.2 million compared with $179.5 million at the end of the second quarter.

The cumulative net cash flow from operating activities at the end of the quarter was $103.4 million compared with $153.3 million a year ago.

National Vision’s 2024 Outlook

National Vision reaffirmed its outlook for 2024 for the 52 weeks ending Dec. 28, 2024.

Full-year net revenues are expected in the range of $1.820-$1.840 billion (unchanged). The Zacks Consensus Estimate for fiscal 2024 revenues currently stands at $1.83 billion.

Adjusted comparable store sales are expected to grow 0.5%-1.5% (unchanged). Adjusted EPS is estimated in the band of 45-50 cents (unchanged). The Zacks Consensus Estimate for the same is currently pegged at 46 cents.

An Update on National Vision’s Portfolio Review

In a separate release, the company announced the results of its comprehensive store fleet review. In August 2024, National Vision disclosed that it had identified an initial list of less than 5% of its total fleet that was not meeting its profitability thresholds. It plans to close 39 of those stores by the end of fiscal 2026 and convert four Eyeglass World stores to America’s Best by the end of fiscal 2024.

In fiscal 2025, the company will temporarily moderate new store openings to 30-35 new stores. After that time, it expects to return to its more recent store opening cadence as its initiatives gain traction.

Our Take on National Vision

National Vision delivered better-than-expected earnings in the third quarter of 2024, while revenues missed estimates. However, the top and bottom lines rose on a year-over-year basis. America’s Best continued to drive the sales performance supported by strength in the company’s managed care business.

In addition, customers responded well to National Vision’s Wise Buys eyeglass promotion, which helped enhance the value offering and attract new customers. The company is capitalizing on its remote capabilities to expand exam capacity and provide doctors with convenient new ways to practice.

National Vision has shown progress in key aspects of its transformation, including the completion of its store fleet review, the implementation of new traffic-driving initiatives, the expansion of exam capacity and remote exam efficiency and the benefit of its strengthened execution team. The expansion of both margins in the quarter is highly encouraging.

EYE’s Zacks Rank and Key Picks

National Vision currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Haemonetics HAE, Intuitive Surgical ISRG and Boston Scientific Corporation BSX.

Haemonetics reported second-quarter fiscal 2025 adjusted earnings of $1.12 per share, which surpassed the Zacks Consensus Estimate by 2.8%. Revenues of $345.5 million beat the consensus mark by 0.7%. HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HAE’s fiscal 2025 earnings are expected to surge 15.9%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.

ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.

Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.

BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Zacks Investment Research

Inogen, Inc. INGN incurred an adjusted loss per share of 11 cents for third-quarter 2024, which was narrower than the adjusted loss per share of 36 cents in the year-ago period and the Zacks Consensus Estimate of a loss of 51 cents per share.

GAAP loss per share for the quarter was 25 cents, narrower than the year-earlier loss of $1.97 per share.

INGN’s Revenues in Detail

Inogen registered revenues of $88.8 million for the third quarter, up 5.8% year over year. The figure surpassed the Zacks Consensus Estimate by 6.2%.

At constant exchange rate (CER), total revenues for the reported quarter increased 6% year over year.

Per management, the year-over-year uptick in the top line was primarily driven by higher demand and new customer gains across the domestic and international business-to-business channels. However, this was partially offset by lower direct-to-consumer sales and rental revenues.

Shares of this company gained nearly 17.2% till last trading.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Inogen’s Segmental Details

Inogen derives revenues from two sources — rental and sales.

Rental revenues for the reported quarter grossed $13.9 million, down 13.1% from the year-ago period both on a reported basis and at CER. Per management, the decrease resulted from continued lower average billing rates due to the mixed shift to private payers.

Sales revenues were $74.9 million, up 10.2% from the prior-year quarter.

INGN’s Revenues by Region & Category

Domestic business-to-business sales for third-quarter 2024 amounted to $16.5 million, up 35.1% on a year-over-year basis. Per management, this was driven by increased demand from new customers and resellers.

International business-to-business sales for the reported quarter amounted to $32.3 million, up 26.2% year over year on a reported basis and up 26.9% at CER. Per management, this resulted from increased demand from new and existing customers.

Domestic direct-to-consumer sales decreased 23.2% year over year to $19.2 million for the quarter.

Inogen, Inc Price, Consensus and EPS Surprise

Inogen, Inc price-consensus-eps-surprise-chart | Inogen, Inc Quote

Inogen’s Margins

For the quarter under review, Inogen’s adjusted gross profit rose 20.1% from the year-ago period to $44.6 million. The adjusted gross margin expanded 598 basis points to 50.2%.

Sales and marketing expenses increased 1% from the year-ago quarter to $26.4 million. Research and development expenses decreased 21.6% year over year to $3.5 million, while general and administrative expenses increased 13.2% year over year to $19.3 million. Adjusted operating expenses of $49.1 million rose 3.2% year over year.

Adjusted operating loss totaled $4.5 million compared with the prior-year quarter’s $10.5 million.

INGN’s Financial Position

Inogen exited third-quarter 2024 with cash and cash equivalents of $105.7 million compared with $97.9 million at the first-quarter end.

The company ended the quarter with no debt on its balance sheet.

Cumulative net cash provided by operating activities at the end of third-quarter 2024 was $8.9 million against cumulative net cash used in operating activities of $0.1 million a year ago.

Inogen’s Guidance

Inogen has provided its revenue outlook for the full year.

The company now expects the metric to lie between $329 million and $331 million (reflecting growth of 4-5% from the comparable 2023 revenues), up from the prior outlook of $325 million to $330 million (reflecting growth of 3-5% from the comparable 2023 revenues). The Zacks Consensus Estimate currently stands at $326.9 million.

Our Take

Inogen exited the third quarter of 2024 with a narrower-than-expected loss per share and better-than-expected revenues. Solid year-over-year top-line and bottom-line performances were encouraging. The robust year-over-year uptick in domestic and international business-to-business sales was impressive. The expansion of the adjusted gross margin also bodes well.

Last month, INGN commenced the U.S. market release of the Inogen Rove 4 Portable Oxygen Concentrator. This looks promising for the stock.

Yet, a decline in domestic direct-to-consumer sales and rental revenues was concerning. Inogen continued to incur operating losses for the third quarter, which did not bode well.

INGN’s Zacks Rank and Key Picks

Inogen currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated DGX, ResMed Inc. RMD and Boston Scientific Corporation BSX.

Quest Diagnostics, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2024 adjusted earnings per share (EPS) of $2.30, beating the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion outpaced the consensus mark by 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quest Diagnostics has a long-term estimated growth rate of 6.5%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.4%.

ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, beating the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.4%.

Boston Scientific reported third-quarter 2024 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

Zacks Investment Research

Zimmer Biomet's ZBH strategic product launches and stabilizing market trends bolster our confidence in this stock. Yet, factors like macroeconomic uncertainties put pressure on the bottom line. The stock carries a Zacks Rank #3 (Hold).

Factors Driving ZBH's Share Price

Zimmer Biomet is witnessing strong market share gains within the reconstructive Knees and Hips in key geographies in recent times despite macroeconomic challenges. The third quarter of 2024 marks the 11th consecutive quarter in which Zimmer Biomet's revenues have grown mid-single digit or above. The International business, overall, exceeded sales expectations in the third quarter, backed by strong demand in key markets across both Reconstructive Knees, Hips and the S.E.T. categories.

Although the company’s Knee business witnessed some challenges posed by the ERP system implementation, internationally, this business grew 10% in the quarter. Further, the Oxford Partial cementless Knee launch in 2025 is expected to drive 60% share in the European market. Within Hips, the company expects the upcoming launches of Z1 HAMMR and Navigation, like OrthoGrid and ROSA posterior in Europe, to drive market share. Zimmer Biomet also currently looks forward to a strong pickup of ROSA Shoulder in 2025.

Currently, Zimmer Biomet is in its diversification journey with its S.E.T. (comprising Surgical, Sports, Upper Extremities, and Restorative Therapies) business. The company has strategically grown S.E.T. sales by at least mid-single digits in recent times. Zimmer Biomet currently expects this trend to continue toward the end of 2024 and also in 2025 and 2026, driven by consistent market share gains of CMFT (Craniomaxillofacial and Thoracic), Sports and Upper Extremities.

The company is currently focusing on ROSA Robotic Platform combined with its Persona cementless Knee. According to Zimmer Biomet, this is a powerhouse combination that will continue to accelerate growth. Zimmer Biomet expects ROSA and Persona cementless together to enhance its robotics and cementless penetration from the current 20% level to 50% to 60% range at a rapid pace.

Zimmer Biomet Holdings, Inc. Price

Zimmer Biomet Holdings, Inc. price | Zimmer Biomet Holdings, Inc. Quote

In fact, the company currently expects the penetration rate of cementless knees to increase drastically in 2024 banking on new product launches. In this regard, following the company’s alliance with THINK Surgical, Zimmer Biomet has become the only orthopedic company in the world that will offer both a handheld CT scan-based system in the TMINI, exclusive for Zimmer Biomet platform, as well as a simplified, CT scan-less robotic system in the current form factor of ROSA for total knee arthroplasty.

Over the past three months, shares of ZBH have gained 1.1% compared with the industry’s 9.3% growth. With the company consistently focusing on strategic market expansion and new product launches, we expect the stock to gain momentum in the coming days.

Factors Affecting ZBH's Growth

The ongoing industry-wide trend of staffing shortages and supply chain-related hazards is denting growth for Zimmer Biomet. Deteriorating international trade and geopolitical complications lead to a tough situation related to raw material and labor cost as well as freight charges. Added to this, a high interest rate scenario has put the dental treatment space (which is highly elective) in a tight spot. Within the Hip category, headwinds in Russia are disproportionately impacting the outside U.S. business. Further, within the S.E.T. category, Zimmer Biomet is facing challenges in the form of reimbursement headwinds, particularly in the Restorative Therapies business. In addition, the company also noted about experiencing acute supply challenges within Sports and Trauma. All these are creating significant pressure on the company’s revenues and operating profit.

During the third quarter, the company incurred 3.9% increase in cost of product sold (excluding intangible asset amortization) and a 3.1% rise in selling, general and administrative expenses. Adjusted gross margin reflected a contraction of 34 basis points, while the adjusted operating margin contracted 18 bps in the quarter.

Further, a substantial portion of Zimmer Biomet’s foreign revenues is generated in Europe and Japan. In recent times, significant increases in the value of the dollar relative to the euro, the Japanese yen, the Swiss franc, or other currencies have had an adverse effect on the company’s operations. In the third quarter of 2024, Zimmer Biomet’s net sales were affected by 0.1% due to changes in foreign exchange rates. For the full year, the company currently expects an adverse impact of 75 basis points from foreign exchange on its revenues.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Boston Scientific BSX and ResMed RMD. While GMED sports a Zacks Rank #1 (Strong Buy), BSX and RMD carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 61% in the past year compared with the industry’s growth of 24.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

Boston Scientific’s shares have surged 58.3% in the past year. Estimates for the company’s earnings per share (EPS) have jumped 2.5% to $2.46 for 2024 and 0.4% to $2.72 for 2025 in the past 30 days. BSX’s earnings surpassed estimates in each of the trailing four quarters, delivering an average beat of 8.3%. In the last reported quarter, it posted an earnings surprise of 8.6%.

Estimates for ResMed’s fiscal 2025 EPS have risen 2.2% to $9.22 in the past 30 days. Shares of the company have surged 58.8% in the past year compared with the industry’s 29.2% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.

Zacks Investment Research

Haemonetics Corporation HAE delivered adjusted earnings per share (EPS) of $1.12 in the second quarter of fiscal 2025, up 13.1% year over year. The bottom line surpassed the Zacks Consensus Estimate by 2.8%.

On a GAAP basis, the EPS was 66 cents compared with 48 cents in the prior-year quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Following the earnings announcement on Nov. 7, shares of HAE increased 1% in Friday’s session, finishing at $87.42.

HAE’s Q2 Total Revenues

Revenues increased 8.6% (up 3.7% on an organic basis) to $345.5 million in the second quarter of fiscal 2025. The top line beat the Zacks Consensus Estimate by 0.7%.

HAE’s Q2 Segmental Details

At Plasma, revenues of $138.6 million (accounting for 40.1% of the total revenues) were down 3% year over year (same on an organic basis) in the reported quarter. Our model projected the unit’s revenues to be $135.4 million.

The decrease resulted from lower sales volumes in North America is related to the previously announced customer transition of CSL Plasma, whose non-exclusive supply agreement with the company is scheduled to expire in December 2025.

Revenues at Blood Center (19.8%) fell 1.6% (down 0.9% on an organic basis) to $68.5 million. Our model forecast stood at $67.6 million. The downside was due to declines in the Whole Blood business.

Hospital revenues (40.1%) rose 30.9% (up 15.8% on an organic basis) to $138.4 million. Our model projected $138.2 million in revenues for this segment.

The revenue increase was led by product lines within the Interventional Technologies franchise and the benefits of Sensor Guided Technologies and Esophageal Protection that were recently acquired. Growth in the Vascular Closure and Blood Management Technologies also contributed.

Haemonetics Corporation Price, Consensus and EPS Surprise

Haemonetics Corporation price-consensus-eps-surprise-chart | Haemonetics Corporation Quote

HAE’s Margin Performance

In the second quarter of fiscal 2025, the company-adjusted gross margin was 56.7%, up 270 basis points (bps) year over year. The primary drivers of the increase were volume, mix and price.

Company-adjusted operating expenses, as a percentage of revenues, were 32.5% in the second quarter of fiscal 2025 compared with 34.2% in the prior-year period.

The decrease was driven by operating leverage and decreased performance-based compensation, partially offset by costs associated with the operations of recent acquisitions and increased headcount.

The company-adjusted operating income was $83.5 million in the quarter under discussion, up 22.2% year over year. The adjusted operating margin was 24.2%, up 270 bps from the year-ago quarter’s levels.

HAE’s Financial Position

Haemonetics exited the second quarter of fiscal 2025 with cash and cash equivalents of $299.3 million compared with $344.4 million at the end of the fiscal first quarter. Long-term debt was $1.22 billion, almost consistent with the reported fiscal first-quarter figure.

The cumulative net cash flow from operating activities at the end of the second quarter of fiscal 2025 was $48.8 million compared with $99.1 million in the year-ago period.

HAE’s Updated 2025 Guidance

The company now expects fiscal 2025 GAAP revenue growth in the range of 5-8% on a reported basis (same as earlier).

Organic revenue growth is anticipated in the range of 1-4% (earlier 0-3%). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.39 billion.

HAE expects full-year 2025 adjusted EPS in the band of $4.45-$4.75 (unchanged). The Zacks Consensus Estimate for the same is pegged at $4.59.

Our Take on HAE

Haemonetics exited the second quarter of fiscal 2025 with earnings and revenues topping estimates. The solid performance reflects the company’s progress with the execution of its long-range plan and response to market trends. The company continues to set the standard in plasma collection, accelerating center conversions and gaining share with the newest technologies, while expanding its presence and successfully addressing emerging industry trends in attractive hospital markets. Expansion of both margins in the quarter bodes well as well.

Meanwhile, both Plasma and Blood Center businesses saw a decrease in revenues in the quarter.

HAE’s Zacks Rank & Other Key Picks

Haemonetics currently carries a Zacks Rank #2 (Buy).

Some other stocks from the broader medical space are Quest Diagnostics DGX, Intuitive Surgical ISRG and Boston Scientific Corporation BSX.

Quest Diagnostics reported third-quarter 2024 adjus

ted earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.

Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.

ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.

Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.

BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Zacks Investment Research