T2 Biosystems, Inc. TTOO is expected to release second-quarter 2020 results in the early weeks of August. The company reported earnings surprise of 21.4% in the last reported quarter.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2020 bottom line is pegged at a loss of 18 cents per share.

Factors to Note

Growing test panel instrument sales are likely to get reflected in T2 Biosystems’ second-quarter produce revenues. This, in turn, might have contributed to the company’s performance in the to-be-reported quarter.

Per the preliminary announcement, second-quarter 2020 total revenues are expected between $2.4 million and $2.6 million. Product revenues are estimated in the range of $1-$1.1 million.

Further, research and grant contribution revenues are anticipated in the band of $1.4-$1.5 million.

In June, the company announced the U.S. launch of the T2SARS-CoV-2 Panel – the new molecular diagnostic test for the identification of SARS-CoV-2 (the virus causing COVID-19).

In March, T2 Biosystems — the only company with solutions to detect sepsis causing pathogens — received a multiyear Innovative Technology contract from Vizient, Inc.

Further, in the same month, the company announced a worldwide licensing agreement of COVID-19, novel coronavirus assay from Hackensack Meridian Health’s Center for Discovery and Innovation. The assay will be adapted to run on T2 Biosystems’ FDA-cleared T2Dx Instrument.

These developments are likely to have positively impacted the company’s second-quarter performance.

In 2020, the company has been focused on advancing programs funded by the $69 million milestone-based government contract awarded in September 2019. This includes the next generation instrument and expanded panel, and a novel biothreat panel. This, in turn, may get reflected in the company’s second-quarter results.

Earnings Whispers

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see below.

Earnings ESP: T2 Biosystems has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences Corporation EXAS has an Earnings ESP of +6.69% and a Zacks Rank of 2.

Hologic, Inc. HOLX has an Earnings ESP of +14.56% and a Zacks Rank of 3.

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