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What's in Store for Boston Scientific (BSX) in Q1 Earnings?

Boston Scientific Corporation BSX is scheduled to report first-quarter 2024 results on Apr 24, before the opening bell.

In the last reported quarter, the company’s earnings per share of 55 cents exceeded the Zacks Consensus Estimate by 7.8%. BSX’s bottom line beat estimates in each of the trailing four quarters. The company delivered a trailing four-quarter earnings surprise of 7.37%, on average.

Factors at Play

With U.S. hospitals expected to report an increase in procedure volumes through the months of 2024, Boston Scientific, with its innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, looks well-positioned to report decent first-quarter results.

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Boston Scientific expects first-quarter 2024 reported revenue growth to be in the range of 7.5-9.5% year over year. Excluding an approximate neutral impact from foreign exchange and the contribution from closed acquisitions and divestitures, the company expects first-quarter 2023 organic revenue growth to be in the range of 7% to 9%.

However, the rate of growth is expected to have remained sluggish amid a challenging supply environment in limited geographies. Further, the business is expected to have faced the hurdle of surging labor and raw material costs, as well as healthcare staffing shortages, which might have weighed on BSX’s bottom line in the first quarter.

Boston Scientific Corporation Price and EPS Surprise

Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation Price and EPS Surprise

Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote

On a geographic basis, despite all macroeconomic headwinds, the company registered strong growth in every geographic region in the last reported quarter, with core business units gaining or maintaining market share. However, with global staffing issues and the supply chain issue still remaining prominent, the international business of BSX is once again expected to have been partially dented by this in the first quarter.

The company is expected to have registered strong growth in the Asia Pacific, led by strength in China, Japan and Latin America. Growth in Japan is expected to have been fueled by new products, most notably AGENT DCB, Rezum, POLARx FIT and WATCHMAN FLX. Performance in China is expected to have been led by the company’s advanced portfolio, with particular strength in its interventional cardiology therapies, WATCHMAN, CRM and PI business units. Latin America is expected to have witnessed strong growth in seven to eight businesses in the first quarter.

In EMEA, the company is expected to have registered growth within structural heart, including Transcatheter aortic valve replacement, WATCHMAN and other interventional cardiology therapies, as well as endoscopy and electrophysiology divisions, fueled by ongoing investments in emerging markets, new and ongoing product launches across the portfolio, pricing discipline and strong commercial execution. The company is expected to have witnessed strength in ACURATE Neo2 and FARAPULSE.

The newly formed WATCHMAN subsegment within the Cardiovascular division has shown meaningful strength in recent times. It is once again expected to report strong growth in the to-be-reported quarter on sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization and commercial execution. With the FDA approval for the WATCHMAN FLX Pro in late 2023, this momentum is expected to have continued within the WATCHMAN franchise in the first quarter.

The consensus estimate for WATCHMAN revenues is pegged at $350.4 million for the first quarter.

The Interventional Cardiology business is expected to have registered year-over-year growth in the Coronary Therapies franchise, including drug-eluting stents and complex PCI, banking on strong performance in international regions and imaging franchises.

Structural Heart Valves, Complex PCI and Imaging franchises are expected to have recorded strong growth backed by solid European performance, courtesy of the ACURATE neo2 TAVR platform. The coronary therapies franchise is likely to have been driven by the company’s differentiated imaging franchise and AGENT Drug-Coated Balloon in the first quarter. However, this might have been offset by the ongoing price pressure in drug-eluting stents.

The consensus estimate for Interventional Cardiology revenues projects a 8.4% improvement in the first quarter.

Within the Peripheral Interventions business, first-quarter sales are expected to have been driven by the strong performance of the drug-eluting franchise, supported by ongoing clinical evidence and the company’s category leadership portfolio. Specifically, Arterial franchise revenues are expected to have been strong, led by the company’s drug-eluting portfolio.

Peripheral Interventions revenues are expected to record an improvement of 8.9% in the first quarter.

Interventional Oncology is expected to have gained from strong momentum in the company’s advanced cancer therapies, TheraSphere and ICEfx, as well as the robust set of embolization access and delivery tools. Recently, the company launched its EMBOLD Soft and Packing Coils, which, along with the EMBOLD fibroid coil, complete its detachable coil system.

Within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth, banking on strong performances of LithoVue and Rezum in key countries.

Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven first-quarter revenues. The company is expected to report strong momentum in AXIOS stent and single-use imaging franchise. The growth momentum is expected to have continued with the recent U.S. marketing authorization for an expanded indication of AXIOS to include gallbladder drainage, increasing access to more patients with this platform.

Within Neuromodulation, the company is likely to have registered balanced growth across the Vercise Genus portfolio and the innovative Image Guided Programming, which is designed to improve the precision and efficiency of the deep brain stimulation procedure.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter total revenues is pegged at $3.68 billion, suggesting an improvement of 8.5% from the prior-year quarter’s reported number.

The consensus mark for adjusted earnings stands at 51 cents per share, implying an 8.5% rise from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

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. This is not the case, as you can see below.

Earnings ESP: Boston Scientific 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: Boston Scientific carries a Zacks Rank #4 (Sell).

Stocks to Consider

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

High Tide HITI has an Earnings ESP of +175.00% and a Zacks Rank #1. The company is expected to release second-quarter fiscal 2024 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.

High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.

ShockWave Medical SWAV has an Earnings ESP of +14.51% and a Zacks Rank #2. The company is due to release first-quarter 2024 results on May 13.

SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.

Edwards Lifesciences EW currently has an Earnings ESP of +1.68% and a Zacks Rank #2. The company is scheduled to release its first-quarter 2024 results on Apr 25.

EW has a historical long-term earnings growth rate of 9.9%. In the trailing four quarters, Edwards Lifesciences delivered an average earnings surprise of 0.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Boston Scientific Corporation (BSX) : Free Stock Analysis Report

Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report

ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report

High Tide Inc. (HITI) : Free Stock Analysis Report

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