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What's in Store for Boston Scientific (BSX) in Q1 Earnings?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report first-quarter 2023 results on Apr 26, before the opening bell.
In the last reported quarter, the company’s earnings per share of 45 cents missed the Zacks Consensus Estimate by 4.26%. BSX’s bottom line beat estimates in two of the trailing four quarters and missed on two occasions. The company has a trailing four-quarter earnings surprise of 0.22%, on average.
Factors at Play
Boston Scientific’s top line is likely to have improved year over year, with elective medical procedures running in a full-fledged way in the United States and elsewhere across the globe. Given the improved scenario along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, BSX is well-positioned to register decent first-quarter 2023 results.
Boston Scientific expects first-quarter 2023 reported revenue growth to be in the range of 3% to 5% versus the year-ago quarter. Excluding an approximate 350 basis points headwind from foreign exchange and a 70 basis points contribution from closed acquisitions, the company expects first-quarter 2023 organic revenue growth to be in the range of 6% to 8%.
However, the rate of growth is expected to have remained sluggish amid a challenging macroeconomic environment in the form of significant staffing shortages and supply disruption through the months of the first quarter. Further, given the ongoing inflationary situation, the business is expected to have faced the hurdle of surging labor and raw material cost, which might have weighed on BSX’s bottom line in the first quarter.
Boston Scientific Corporation Price and EPS Surprise
On a geographic basis, despite all macroeconomic headwinds, in the last reported quarter, the company registered strong growth in every geographic region with most of the business units gaining or maintaining market share. With macroeconomic factors being more or less the same, this trend is expected to have continued this time as well for BSX.
The company is expected to have registered strong growth in EMEA within structural heart, including TAVR, WATCHMAN, and other interventional cardiology therapies, as well as electrophysiology divisions, fueled by ongoing investments in emerging markets, new and ongoing product launches across the portfolio, pricing discipline and strong commercial execution. Boston Scientific is particularly optimistic about 2023 ahead with ongoing momentum across EMEA, particularly with the company’s advanced portfolio of Electrophysiology and further opportunity with Baylis in the Access Solutions franchise. This momentum should get reflected from the Q1 itself,
The newly-formed WATCHMAN subsegment within the Cardiovascular division, according to the company, is on track to deliver full-year double-digit growth on sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization and commercial execution. In terms of innovation, recently, Boston Scientific launched Trusteer, its new steerable sheath and also highlighted the next-generation FLX device, WATCHMAN FLX PRO, at the TCT investor event. These developments are expected to have enhanced WATCHMAN sales in the quarter to be reported.
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 franchise.
Structural Heart Valves and Complex PCI and Imaging franchises too are expected to have reported strong growth. In the United States, the first-quarter performance is likely to have been driven by the coronary therapies franchise, driven by the strong performance of the company’s differentiated imaging franchise. Internationally, growth is expected to have continued, backed by solid performance in Europe with the ACURATE neo2 TAVR platform.
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.
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.
Within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth, banking on ongoing product launches such as LithoVue and SpaceOAR in key countries. The growth momentum is expected to have continued with the recent approvals and commercial launches of SpaceOAR in Korea, Mexico and Rezum in Japan.
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 biliary hemostasis and single-use imaging franchise.
Within Neuromodulation, the company is likely to have registered balanced procedure recovery across RF (radiofrequency), Vertiflex and Spinal Cord Stimulation on strong execution of category leadership strategy in pain. Contributions from WaveWriter Alpha, FASTand Vercise Genus are expected to have boosted the top line.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $3.15 billion, suggesting an improvement of 4.1% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 43 cents per share, implying a 10.3% 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. However, 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 #3.
Stocks to Consider
Here are some medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter.
Bio-Rad has a 2023 expected earnings growth rate of 10.3%. BIO’s earnings yield of 3.38% compares favorably with the industry’s (2.78%).
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of #1. Henry Scheinis expected to release first-quarter fiscal 2023 results on May 2.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%. HSIC’s2024 growth rate is estimated to be 7.7%.
Teva Pharmaceutical Industries Limited (TEVA - Free Report) currently has an Earnings ESP of +14.97% and a Zacks Rank of #2. TEVA is expected to release first-quarter 2023 results on May 2.
TEVA’s2024 growth rate is estimated to be 4.4%. TEVA’s earnings yield of 25.50% compares favorably with the industry’s (34.35%).
Image: Bigstock
What's in Store for Boston Scientific (BSX) in Q1 Earnings?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report first-quarter 2023 results on Apr 26, before the opening bell.
In the last reported quarter, the company’s earnings per share of 45 cents missed the Zacks Consensus Estimate by 4.26%. BSX’s bottom line beat estimates in two of the trailing four quarters and missed on two occasions. The company has a trailing four-quarter earnings surprise of 0.22%, on average.
Factors at Play
Boston Scientific’s top line is likely to have improved year over year, with elective medical procedures running in a full-fledged way in the United States and elsewhere across the globe. Given the improved scenario along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, BSX is well-positioned to register decent first-quarter 2023 results.
Boston Scientific expects first-quarter 2023 reported revenue growth to be in the range of 3% to 5% versus the year-ago quarter. Excluding an approximate 350 basis points headwind from foreign exchange and a 70 basis points contribution from closed acquisitions, the company expects first-quarter 2023 organic revenue growth to be in the range of 6% to 8%.
However, the rate of growth is expected to have remained sluggish amid a challenging macroeconomic environment in the form of significant staffing shortages and supply disruption through the months of the first quarter. Further, given the ongoing inflationary situation, the business is expected to have faced the hurdle of surging labor and raw material cost, which might have weighed on BSX’s bottom line in the first quarter.
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, in the last reported quarter, the company registered strong growth in every geographic region with most of the business units gaining or maintaining market share. With macroeconomic factors being more or less the same, this trend is expected to have continued this time as well for BSX.
The company is expected to have registered strong growth in EMEA within structural heart, including TAVR, WATCHMAN, and other interventional cardiology therapies, as well as electrophysiology divisions, fueled by ongoing investments in emerging markets, new and ongoing product launches across the portfolio, pricing discipline and strong commercial execution. Boston Scientific is particularly optimistic about 2023 ahead with ongoing momentum across EMEA, particularly with the company’s advanced portfolio of Electrophysiology and further opportunity with Baylis in the Access Solutions franchise. This momentum should get reflected from the Q1 itself,
The newly-formed WATCHMAN subsegment within the Cardiovascular division, according to the company, is on track to deliver full-year double-digit growth on sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization and commercial execution. In terms of innovation, recently, Boston Scientific launched Trusteer, its new steerable sheath and also highlighted the next-generation FLX device, WATCHMAN FLX PRO, at the TCT investor event. These developments are expected to have enhanced WATCHMAN sales in the quarter to be reported.
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 franchise.
Structural Heart Valves and Complex PCI and Imaging franchises too are expected to have reported strong growth. In the United States, the first-quarter performance is likely to have been driven by the coronary therapies franchise, driven by the strong performance of the company’s differentiated imaging franchise. Internationally, growth is expected to have continued, backed by solid performance in Europe with the ACURATE neo2 TAVR platform.
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.
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.
Within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth, banking on ongoing product launches such as LithoVue and SpaceOAR in key countries. The growth momentum is expected to have continued with the recent approvals and commercial launches of SpaceOAR in Korea, Mexico and Rezum in Japan.
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 biliary hemostasis and single-use imaging franchise.
Within Neuromodulation, the company is likely to have registered balanced procedure recovery across RF (radiofrequency), Vertiflex and Spinal Cord Stimulation on strong execution of category leadership strategy in pain. Contributions from WaveWriter Alpha, FASTand Vercise Genus are expected to have boosted the top line.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $3.15 billion, suggesting an improvement of 4.1% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 43 cents per share, implying a 10.3% 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. However, 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 #3.
Stocks to Consider
Here are some medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter.
Bio-Rad Laboratories (BIO - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank of #1. The company is slated to release first-quarter 2023 results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bio-Rad has a 2023 expected earnings growth rate of 10.3%. BIO’s earnings yield of 3.38% compares favorably with the industry’s (2.78%).
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of #1. Henry Scheinis expected to release first-quarter fiscal 2023 results on May 2.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%. HSIC’s2024 growth rate is estimated to be 7.7%.
Teva Pharmaceutical Industries Limited (TEVA - Free Report) currently has an Earnings ESP of +14.97% and a Zacks Rank of #2. TEVA is expected to release first-quarter 2023 results on May 2.
TEVA’s2024 growth rate is estimated to be 4.4%. TEVA’s earnings yield of 25.50% compares favorably with the industry’s (34.35%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.