metamorworks
Several medical technology companies are expected to release financial updates or other corporate news next week when JP Morgan's big annual healthcare conference convenes in San Francisco.
Canaccord Genuity said in a recent note that it expects ten of the companies it covers in the diagnostics and tools space making presentations this week: 10x Genomics (TXG), Exact Sciences (NASDAQ:EXAS), Guardant Health (NASDAQ:GH), illuminates (NASDAQ:ILMN), Natera (INTRA), Pacific Biosciences (NASDAQ:PACB), NanoString Technologies (NASDAQ:NSTG), Akoya Biosciences (NASDAQ:AKYA) and Quanterix (NASDAQ:QTRX).
Among the companies filing this week, Akoya, Exact Sciences, NanoString and Pacific Biosciences are considered most likely to pre-announce preliminary fourth-quarter 2023 financial results, with Quanterix, Illumina and Guardant also considered possibilities. 10x Genomics and Natera are unlikely to make a prior announcement, Canaccord said.
The investment firm does not believe that any of those companies will publish their 2024 forecasts this week. He also doesn't believe Illumina will offer any details about the recent departure of its COO or the divestiture of Grail. However, he does see Akoya announcing “at least one notable event without results.”
Canaccord said Pacific Biosciences' comments on the orders and utilization of Revio would be “very important,” while Guardant's comments on the FDA Advisory Committee meeting for Shield “would be significant.” As for NanoString, “updates on the impact of space litigation and potential cash needs are critical.”
Other companies that could possibly issue updates this week include Biodesix (BDX), Castle Biosciences (CSTL), Exagen (XGN), Lucid Diagnostics (LUCD), Olink (OLK), SomaLogic (SLGC) and Quantum-Si (QSI), Canaccord . aggregate.
Meanwhile, Needham said he expects at least 13 of the 45 companies he covers in the medical technology and diagnostics space to pre-announce preliminary fourth-quarter earnings by mid-January. The 13 companies are Alphatec (ATEC), AtriCure (ATRC), Axonics (AXNX), Hologic (HOLX), InMode (INMD), Inogen (INGN), Masimo (MASI), OrthoPediatrics (KIDS), Paragon 28 (FNA), Personalis (PSNL), RxSight (RXST), SI-BONE (SIBN) and STAAR Surgical (STAA).
Two other companies, Dentsply Sirona (XRAY) and Sight Sciences (SGHT), could also pre-announce their preliminary fourth-quarter earnings, Needham added.
During the January conference season, Needham sees Alphatec and Hologic shares as the most likely to outperform, while Masimo shares are the most likely to underperform due to their previous Q4 announcements. quarter and/or its guidance for 2024.
For Alphatec, Needham sees updates on competitive rep hiring, the durability of PTP's strength and its halo effect on the company's broader portfolio, and the company's ability to continue improving profitability as the top three themes. which investors will focus on towards 2024.
For Hologic, he sees updates on the company's breast health business, diagnostics growth drivers such as Panther utilization, and uses of cash such as stock buybacks versus mergers as key themes. and acquisitions.
As for Masimo, Needham expects the key topics of discussion to be updates on new consumer health product launches; updates on sensor delays, sensor utilization in 2024 and capital demand; and the company's ability to increase gross and operating margins and sources of leverage.
At a sector level, Needham said he expects macro themes to dominate conference discussions this year, including inflation, supply chains, healthcare workforce, currency impacts, capital spending, economic outlook, GLP-1 weight loss drugs and the economic situation in China. .
