Healthcare solutions provider Solventum (NYSE: SOLV) will be reporting earnings this Tuesday after the bell. Here’s what you need to know.
Solventum beat analysts’ revenue expectations last quarter, reporting revenues of $2.00 billion, down 3.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is Solventum a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Solventum’s revenue to decline 4.9% year on year, a reversal from the 2.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Solventum has a history of exceeding Wall Street’s expectations.
Looking at Solventum’s peers in the healthcare equipment and supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zimmer Biomet delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 0.9%, and CONMED reported a revenue decline of 1.3%, topping estimates by 2.1%. Zimmer Biomet traded down 13.5% following the results while CONMED was up 1.8%.
Read our full analysis of Zimmer Biomet’s results here and CONMED’s results here.
There has been positive sentiment among investors in the healthcare equipment and supplies segment, with share prices up 6% on average over the last month. Solventum is up 6.1% during the same time and is heading into earnings with an average analyst price target of $84.08 (compared to the current share price of $67.13).
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