MedTech Stocks' Earnings to Watch on May 7: COR, QDEL & INGN

The medical device sector saw steady sales growth in the first quarter of 2025, supported by innovation in AI, wearables, and personalized care. However, earnings gains were more modest as global tariffs, inflationary costs, and supply chain disruptions continued to pressure margins. Despite resilient demand, companies faced operational and financial headwinds that tempered overall profitability. Per the latest Earnings Preview, 45% of the companies in the Medical sector, comprising 57.9% of the sector’s market capitalization, reported earnings till April 30. Of these, 85.2% beat earnings estimates and 70.4% surpassed revenue estimates. Earnings increased 4.7% year over year on 9.4% higher revenues.

This scorecard highlights the Medical sector’s continued resilience amid an uncertain macroeconomic environment. Throughout the first quarter, the companies saw rising demand for surgery-related procedures. However, most players in the industry were reeling under continued inflationary pressure across the world. Mounting raw material costs, labor-supply constraints and supply-chain disruptions hampered the entire production and distribution process. Meanwhile, an increase in the prices of products and services is likely to have aided the Medical sector.

Overall, the Medical sector's first-quarter earnings are expected to improve 40%, while sales are expected to increase 8.3%. This compares with the fourth quarter of 2024 reported earnings increase of 13.4% and revenue growth of 9.4%.

Medical Device Quarterly Synopsys

In the first quarter of 2025, the medical device industry saw strong momentum driven by technological innovation, especially in artificial intelligence (AI) and digital health solutions. AI-powered diagnostic tools continued to improve clinical accuracy and patient outcomes, while wearable devices such as continuous glucose monitors and smartwatches expanded their presence in preventive care and remote monitoring. The Internet of Medical Things (IoMT) enabled real-time patient data collection and predictive analytics, streamlining hospital operations and enabling more personalized treatment. Advancements in 3D printing also gained ground, particularly for custom implants and prosthetics, signaling a shift toward individualized medicine and faster production capabilities.

However, this progress unfolded amid intensifying global trade tensions that strained operating margins. The U.S. administration enacted a 10% baseline tariff on all imports in early April 2025, along with additional country-specific levies. Major players were quick to quantify the damage; GE Healthcare projected a $500 million cost hit for 2025, while Philips anticipated a EUR 250–300 million impact. Zimmer Biomet revised its full-year profit forecast downward, citing a combination of acquisition costs and tariff uncertainty. These rising input costs have forced the industry to rethink international supply chains, particularly those dependent on low-cost manufacturing regions, and to explore local production as a strategic hedge.

To adapt, companies across the sector are reconfiguring their manufacturing and sourcing strategies. Many are now diversifying supplier networks, investing in domestic production capacity, and prioritizing regions with favorable trade agreements. Firms with strong margins may absorb the impact, but others are likely to pass on costs to end users or cut discretionary spending. The prevailing mindset of "think globally, act locally" is gaining traction as companies seek to align manufacturing and sales geographies more closely.

As Cencora, Inc. COR, QuidelOrtho QDEL and Inogen INGN approach their earnings, these broader industry forces will be key variables influencing their performance and forward-looking strategies.

Let’s take a look at the MedTech players scheduled to announce results on May 7.

Cencora: Cencora is expected to report a moderate performance for the fiscal second quarter following a strong start earlier in the year. The U.S. Healthcare Solutions segment is likely to continue benefiting from robust demand for specialty distribution and GLP-1 drugs, with a forecasted 14% revenue growth to $74 billion and a 10% increase in operating income. The company’s strategic acquisitions, including Retina Consultants of America in January, should further contribute to revenue growth. However, a decline in COVID-19 vaccine sales may impact both segmental sales and margins, with softer growth expected in GLP-1 drug sales compared to the first quarter’s 53% year-over-year increase.

On the international front, COR's Healthcare Solutions segment is anticipated to see 5.5% revenue growth. However, sequential performance may be weaker due to the strengthening U.S. dollar, despite stable volumes in constant currency. The specialty logistics business, particularly World Courier, is also expected to face continued challenges from low activity in clinical trials and cell and gene therapies, as well as macroeconomic pressures in European and animal health markets. However, a recovery in international logistics and the effects of easing currency are expected to improve performance in the latter half of the year. (Read more: Will Speciality and GLP-1 Drugs Help COR Beat Q2 Earnings Estimates?)

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) has a good chance of beating estimates.

COR is likely to beat earnings estimates in the upcoming release as it has an Earnings ESP of +0.82% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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QuidelOrtho: QuidelOrtho’s first-quarter 2025 earnings are expected to reflect ongoing challenges in the respiratory segment, with softer revenues from COVID-19 and flu products. For the fourth quarter of 2024, the company reported a 4% decrease in year-over-year revenues, primarily due to lower COVID-19 and flu revenues. The respiratory segment saw a sharp 18% decline in revenues, with COVID-related revenues totaling $44 million. However, the company observed a strong February in the respiratory season, indicating potential for a modest recovery heading into first-quarter 2025.

From a regional standpoint, constant currency revenue growth in Asia-Pacific, Japan, and Latin America was solid at 13% in fourth-quarter 2024, driven by strong performance in the labs business, particularly in China. However, the respiratory decline and lower sales in cardiac point-of-care products due to order timing and reimbursement changes in certain provinces weighed on results. Europe, the Middle East, and Africa (EMEA) experienced a 6% decline, impacted by one-time factors, though the region grew 2% year over year for 2024. North America was particularly hard-hit, with an 11% revenue decline, driven by a sharp drop in respiratory and U.S. donor screening revenues. Despite these challenges, QuidelOrtho’s non-respiratory businesses—labs, transfusion medicine, and cardiac point-of-care remained relatively stable, with underlying labs growth of 4%, excluding COVID and non-core revenues.

Looking ahead to the first quarter of 2025, QuidelOrtho is expected to continue facing pressures from the respiratory downturn, but strong demand in specialty diagnostics, immunohematology, and transfusion medicine will help offset these declines. Cardiac sales could also see a modest recovery after a slow fourth quarter due to order timing issues in North America. The international segment, particularly in China, remains a key growth driver, and QuidelOrtho’s continued investments in its Labs business and biosimilars should provide stable performance. Currency headwinds may continue to impact international results, but these are expected to ease in the latter part of the year. Overall, the company’s diversified portfolio positions it for a steady performance, though respiratory-related softness will remain a key challenge.

QDEL is not likely to beat earnings estimates in the upcoming release as it has an Earnings ESP of +4.76% but a Zacks Rank of 4 (Sell).

The Zacks Consensus Estimate for QuidelOrtho’s first-quarter EPS is pegged at 58 cents, indicating an improvement of 31.8% from the year-ago period’s level.

QuidelOrtho Corporation Price

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Inogen: Inogen is expected to report modest growth for the first quarter of 2025, with revenues projected between $79 million and $81 million, reflecting a 1% to 4% increase compared to the same period last year. This growth is likely to primarily stem from business-to-business (B2B) sales, especially in international markets. Inogen’s B2B international revenue saw a 31.5% increase in the fourth quarter of 2024, a trend that is anticipated to continue into the first quarter of 2025, driven by growing demand in markets outside the United States, particularly in Europe and Asia-Pacific.

Conversely, direct-to-consumer (DTC) sales are expected to face headwinds, continuing a decline of approximately 21% because of the company’s ongoing strategy to streamline operations, including reducing its sales force. This will likely continue to dampen the performance of its DTC segment in the first quarter of 2025. Additionally, the rental revenue segment is expected to see further softness, following a 16.5% decline in the fourth quarter of 2024, mainly due to reduced billing rates and a shift toward private payers.

While the first quarter of 2025 faces challenges in DTC and rental revenue, Inogen’s ongoing focus on innovation is likely to contribute to its long-term growth. The company plans to launch its Simeox airway clearance device in 2025, which is expected to drive additional growth in the respiratory treatment market. Additionally, the recent strategic partnership with Yuwell Medical, which includes a $27.2 million investment, will support Inogen's expansion into the Chinese market for respiratory devices, a significant long-term growth opportunity.

Inogen remains focused on achieving gross margins between 43% and 45% in 2025 and is targeting adjusted EBITDA breakeven for the year. The company’s expense management strategy and cost reductions are likely to continue to support profitability into the second half of the year.

INGN has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for Inogen’s first-quarter loss per share is pegged at 52 cents, indicating an improvement of 16.1% from the year-ago period’s level.

Inogen, Inc Price

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