Dj Holder Naemura Acquires 9364 Of Neogen Corp >Neog

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Boston Scientific and the best and worst performers in the medical devices & supplies - diversified industry.

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 5 medical devices & supplies - diversified stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

While some medical devices & supplies - diversified stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results.

Boston Scientific

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Boston Scientific reported revenues of $5.07 billion, up 20.3% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates and revenue guidance for next quarter topping analysts’ expectations.

"We delivered another exceptional quarter of strong performance across businesses and regions thanks to the winning spirit of our global team," said Mike Mahoney, chairman and chief executive officer, Boston Scientific.

Boston Scientific pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.6% since reporting and currently trades at $98.26.

We think Boston Scientific is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Neogen

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Neogen reported revenues of $209.2 million, down 3.6% year on year, outperforming analysts’ expectations by 2.6%. The business had a very strong quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Neogen achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $5.86.

Is now the time to buy Neogen? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Baxter

With a history dating back to 1931 and products used in over 100 countries, Baxter International provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.

Baxter reported revenues of $2.84 billion, up 5% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter missing analysts’ expectations significantly.

Baxter delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 18.5% since the results and currently trades at $18.27.

Read our full analysis of Baxter’s results here.

Stryker

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Stryker reported revenues of $6.06 billion, up 10.2% year on year. This number met analysts’ expectations. Overall, it was a satisfactory quarter as it also produced organic revenue in line with analysts’ estimates.

The stock is flat since reporting and currently trades at $369.45.

Read our full, actionable report on Stryker here, it’s free for active Edge members.

Abbott Laboratories

With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.

Abbott Laboratories reported revenues of $11.37 billion, up 6.9% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded organic revenue in line with analysts’ estimates but revenue in line with analysts’ estimates.

The stock is down 4.4% since reporting and currently trades at $127.35.

Read our full, actionable report on Abbott Laboratories here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after reports revealed the Trump administration considered extending the Affordable Care Act (ACA) subsidies. These subsidies, which are government financial aids to help people pay for health insurance, are crucial for insurers as they maintain a stable customer base. An extension would ensure continued revenue for companies with significant exposure to the ACA marketplace. The news prompted a strong positive reaction from investors, with Centene (CNC) shares jumping as much as 8%, Molina Healthcare (MOH) rising over 3%, and Oscar Health (OSCR) soaring 18%. The potential for a two-year extension reduces regulatory uncertainty for the sector, which investors view as a significant positive for the industry's outlook.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Therapeutics company Myriad Genetics jumped 4.8%. Is now the time to buy Myriad Genetics? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Diversified company Neogen jumped 4.3%. Is now the time to buy Neogen? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Cardiology, Neurology, Vascular company ICU Medical jumped 4.6%. Is now the time to buy ICU Medical? Access our full analysis report here, it’s free for active Edge members.
• Hospital Chains company HCA Healthcare jumped 3.1%. Is now the time to buy HCA Healthcare? Access our full analysis report here, it’s free for active Edge members.
• Hospital Chains company Universal Health Services jumped 2.8%. Is now the time to buy Universal Health Services? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Myriad Genetics (MYGN)

Myriad Genetics’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 7.2% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

Myriad Genetics is down 42.8% since the beginning of the year, and at $7.73 per share, it is trading 53.7% below its 52-week high of $16.69 from December 2024. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at an investment worth $424.22.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Medical Devices & Supplies - Diversified company CooperCompanies jumped 5.6%. Is now the time to buy CooperCompanies? Access our full analysis report here, it’s free for active Edge members.
• Patient Monitoring company iRhythm jumped 5.6%. Is now the time to buy iRhythm? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Diversified company Baxter jumped 5.6%. Is now the time to buy Baxter? Access our full analysis report here, it’s free for active Edge members.
• Healthcare Technology for Providers company Omnicell jumped 5.7%. Is now the time to buy Omnicell? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Diversified company Neogen jumped 6.2%. Is now the time to buy Neogen? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Neogen (NEOG)

Neogen’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 10 days ago when the stock gained 3.4% on the news that the market experienced a sharp sector rotation, as investors fled growth-oriented technology stocks and piled into value-oriented names amid growing valuation concerns. This divergence was stark: the tech-heavy Nasdaq struggled, losing 0.2%, while the Dow rallied.This shift away from tech was triggered by a series of negative catalysts in the AI sector. AI cloud provider CoreWeave slid on disappointing guidance, while chip darling Nvidia pulled back after SoftBank sold its stake. This "hurt the AI trade," dragging down related names like Micron and Oracle.As capital left tech, it sought safety in "higher quality" defensive names. Health care giants like Merck, Amgen, and Johnson & Johnson saw significant buying, boosting the Dow.

Neogen is down 52.1% since the beginning of the year, and at $5.72 per share, it is trading 62.6% below its 52-week high of $15.31 from November 2024. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $155.03.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - diversified industry, including Stryker 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 5 medical devices & supplies - diversified stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% 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.

Stryker

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Stryker reported revenues of $6.06 billion, up 10.2% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with organic revenue in line with analysts’ estimates.

“We delivered another quarter of strong sales and double-digit adjusted earnings per share growth,” said Kevin A. Lobo, Chair and CEO.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $368.24.

Is now the time to buy Stryker? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Neogen

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Neogen reported revenues of $209.2 million, down 3.6% year on year, outperforming analysts’ expectations by 2.6%. The business had a very strong quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Neogen scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.7% since reporting. It currently trades at $5.61.

Is now the time to buy Neogen? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Baxter

With a history dating back to 1931 and products used in over 100 countries, Baxter International provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.

Baxter reported revenues of $2.84 billion, up 5% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter missing analysts’ expectations.

Baxter delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.3% since the results and currently trades at $18.09.

Read our full analysis of Baxter’s results here.

Boston Scientific

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Boston Scientific reported revenues of $5.07 billion, up 20.3% year on year. This number topped analysts’ expectations by 1.9%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and revenue guidance for next quarter topping analysts’ expectations.

Boston Scientific delivered the fastest revenue growth among its peers. The stock is down 2.2% since reporting and currently trades at $97.71.

Read our full, actionable report on Boston Scientific here, it’s free for active Edge members.

Abbott Laboratories

With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.

Abbott Laboratories reported revenues of $11.37 billion, up 6.9% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded organic revenue in line with analysts’ estimates but revenue in line with analysts’ estimates.

The stock is down 5.1% since reporting and currently trades at $126.51.

Read our full, actionable report on Abbott Laboratories here, it’s free for active Edge members.