In our latest report, our research team reviews earnings updates across our innovation indices with better than expected earnings results in 2Q20. We review both the fundamentals and areas of interest across robotics, AI and healthcare technology.
SUMMARY
ROBO: Robotics & Automation Index
With the better than expected 2Q20 earnings season behind us, we review fundamentals as well as areas of strength (Artificial Intelligence) and weakness (automotive manufacturing and 3D printing). After significant downward revisions in March–June, earnings estimates have turned back up, and while the ROBO index is up 16% YTD to new all-time highs, about a quarter of its constituents remain more than 20% below prior highs.
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THNQ: Artificial Intelligence Index
The ROBO Global Artificial Intelligence Index (THNQ) delivered solid 2Q earnings performance. Median sales growth for the 70 members of the THNQ Index was 21%, with one-quarter of index members growing sales by 40% or more during the quarter. This was driven by the explosive growth in enterprise cloud solutions and business infrastructure spending to accommodate the massive shift to remote work and online shopping.
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HTEC: Healthcare Technology & Innovation Index
The Healthcare Technology and Innovation Index (HTEC) recorded its first quarterly revenue contraction in at least 10 years, with sales declining by 4% YoY at the median, compared to 6% growth in the prior quarter and a long-term average of 11%. EPS also declined YoY for the first time in at least a decade, with a 37% drop at the median, compared with 8% growth a year ago. While Medical Instruments, Robotics, and Genomics experienced sales declines in the 17–23% range, Telehealth, Precision Medicine, and Diagnostics continued on their robust growth trajectory.