Weekly Roundup – June 29
By: Erin Gifford
Bed Bath & Beyond (BBBY): Analysts Expect BBBY Estimates to Fall Short of Management Guidance
Last week, Bed Bath & Beyond reported 1Q17 results that were well-below expectations. The results were highlighted by -2.0% comparable store sales growth, which compared to the company’s full-year guidance of “relatively flat to slightly positive” comparable store sales growth. Reported EPS of $0.53 was also well-below consensus of $0.66. Read more…
With $1.9B in revenue last year, the Diabetes Group at Medtronic represented just 6% of sales. However, management is aiming to grow the segment significantly over the next several years.
LifePoint Health acquired eight healthcare facilities between 2015 and 2016 with a goal of bringing their EBITDA margins from single digits to double digits. Over one year later, investors are now looking for LifePoint Health to demonstrate overall company EBITDA margin expansion driven by operating efficiencies at those acquired hospitals.
GILD: How much further will the Hepatitis C franchise decline?
By: Erin Gifford
Gilead reported 1Q17 earnings last week and missed earnings expectations. The miss was largely driven by its Hepatitis C (HCV) franchise, which was down 40% YoY.
Prior to Johnson & Johnson’s 1Q results on April 18, investors were concerned about the outlook for the Pharmaceutical segment. Pharmaceutical (Pharma) is the largest of the three segments, and represents 47% of sales. Investors have worried that growth within the Pharma segment would slow from its historical rate of double digit organic growth to a low single digit rate. A big factor for the decline was an expected slowdown in Remicade, as the drug faced competition from Pfizer’s Inflectra biosimilar, announced late last year.
