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Bear of the Day: Boston Scientific (BSX)

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Key Takeaways

  • Boston Scientific's Q3 organic sales growth of 1.5% missed guidance after a cybersecurity disruption.
  • Boston Scientific's adjusted EPS fell 3% to 73 cents, while 2026 sales and earnings forecasts were cut.
  • BSX management expects 2027 to mark the cycle's trough, with recovery in 2028 driven by new launches.

I last wrote about Boston Scientific ((BSX - Free Report) ) as the Bear of the Day in early August after their Q2 report and management's lowered guidance propelled analysts to notch down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.

Here's how I described the situation then...

Boston Scientific manufactures medical devices and products used in various interventional medical specialties worldwide, including cardiovascular and surgical categories.

On July 29, BSX reported revenue of $5.44 billion for their June quarter, up 7.5% over the same period last year. EPS came in at $0.86, compared to $0.75 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $5.38 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.

In response to the conference call and management's lowered guidance, analysts notched down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.

Since its 2025 highs near $110, BSX has been in a steady bear market, making new 52-week lows above $42 last month -- despite nearly doubling revenues in the last 5 years to cross $21 billion.

The stock may soon sort out a bottom after this report given other strong metrics under the hood of the business which continues to grow the top and bottom lines at mid-single digits. 

(end of August 3 article excerpt)

BSX Q3 Results Reset Growth Expectations as 2027 Outlook Stays Weak

That link will take you to a review of their quarterly results delivered on October 28, which put them back in the cellar of the Zacks Rank as analysts once again lowered their growth forecasts.

In the past two months, the Zacks consensus EPS estimate for this year has dropped from $3.29 to $3.17, representing just 3.6% annual growth. And next year has fallen to flatline from $3.39 to $3.09. 

Shares look somewhat reasonable on a P/E basis at 15X. But with growth continuing to flatline, it looks more expensive trading over 3x sales that are also projected to go negative. 

For a more optimistic long term look at the BSX business, check out this detailed report by my colleague Mayur Thaker who is a deep value investor with his sights on Boston Scientific...

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