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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 2022 results on Apr 27, before the opening bell.
In the last-reported quarter, the company’s earnings per share of 45 cents exceeded the Zacks Consensus Estimate by 2.3%. BSX’s bottom line beat estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 9.05%, on average.
Factors at Play
Boston Scientific expects first-quarter 2022 operational revenue growth in the range of 7% to 10% versus 2021. This excludes an approximate 200-basis point headwind from foreign exchange based on current rates but includes a 210-basis point contribution from the acquisitions of Preventice, Farapulse, and Lumenis, and $13 million of pre-divestiture specialty pharmaceutical sales in 2021. Excluding the impact of closed acquisitions and divestitures, the company expects first-quarter 2022 organic revenue growth in the range of 5% to 8% from the year-ago period. Meanwhile, the Baylis Medical acquisition, which closed in early February, is expected to have had a partial quarter contribution to the company’s Q1 top line.
Meanwhile, BSX’s top line is likely to have improved year over year with the non-COVID elective medical procedures running in a full-fledged way in the United States and other regions across the globe. Given an improving scenario along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, Boston Scientific is well-positioned to register strong first quarter of 2022 results.
Boston Scientific Corporation Price and EPS Surprise
However, the rate of growth is expected to have remained sluggish compared with fourth-quarter 2021 levels, thanks to the emergence of the more contagious Omicron and Omicon XE variants of COVID-19 in the past few months. This scenario resulted in significant staffing shortages and supply disruption through January and February.
On a geographic basis, every market of Boston Scientific is expected to have registered broad-based growth in the quarter under review from first-quarter 2021 levels, despite COVID-related uncertainties. The company is expected to have registered strong growth in EMEA within PI, EP, Endo and Neuromodulation divisions fueled by new product launches like TheraSphere, POLARx and AXIOS. In the Asia Pacific — particularly in Japan, China and Australia — product launches are expected to have contributed to the company’s top line on the rise in vaccination rates. Further, Ranger Drug-Coated Balloon and the newly-launched POLARx are likely to have contributed to growth in Japan.
Within the Interventional Cardiology (IC) business, the company is expected to have registered year-over-year growth in Structural Heart Valves, WATCHMAN and Complex PCI and Imaging franchises. The company is expected to report a sequential rise in WATCHMAN franchise revenues, driven by the increasing hospital and physician utilization rates in the United States and Europe. The company had earlier talked about expanding its U.S. Vercise Genus offering in 2022 in partnership with Brainlab. This development might have positively contributed to Q1’s IC revenues.
In Structural Heart franchises, the ACURATE neo2 launch in Europe is expected to have registered positive performance. Sentinel, the company’s cerebral embolic protection device, exceeded 20% market share in the United States where it's utilized. This momentum is likely to have continued in the to-be-reported quarter.
Within coronary therapies, drug-eluting stents continued to be a challenge from a pricing standpoint. Nevertheless, the company is expected to have witnessed strong growth in Complex PCI and Imaging, with strength in RotaPro and IVUS.
Within the Peripheral Interventions (PI) business, first-quarter sales are expected to have been strong, banking on a favorable mix of high acuity and outpatient site of care for procedures as well as a category-leading portfolio and strong cadence of product launches. Interventional Oncology is expected to have gained from strong momentum in TheraSphere. In Venous, Varithena is expected to have recorded solid first-quarter numbers and gained share in the varicose vein market.
Within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth. The Lumenis acquisition (closed in September) is expected to have made a full-quarter contribution to the company’s sales. The LithoVue, SpaceOAR and Rezum product lines are expected to have performed strongly. Boston Scientific continues to expect urology/ pelvic health to have one of the faster potential recovery curves, aided by a higher office ASE mix for most elective procedures.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven fourth-quarter revenues. The launch of AXIOS, Resolution Ultra hemostasis clip and single-use scopes are expected to have contributed to the company’s top line in the to-be-reported quarter. EXALT B, which is available in both the United Americas and Europe, is expected to have driven the company’s endoscopy sales.
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. The ongoing launch of the next-gen WaveWriter Alpha SCS system with Cognita digital solutions and continued clinical evidence generation is expected to have boosted the top line.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $2.95 billion, suggesting an improvement of 7.3% from the prior-year quarter’s reported number. The consensus mark for adjusted earnings stands at 38 cents per share, implying a 2.7% 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 -0.53%. 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 have the right combination of elements to post an earnings beat this quarter.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x is significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +15.62% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected to be 41.83%.
Meridian Bioscience has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
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 2022 results on Apr 27, before the opening bell.
In the last-reported quarter, the company’s earnings per share of 45 cents exceeded the Zacks Consensus Estimate by 2.3%. BSX’s bottom line beat estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 9.05%, on average.
Factors at Play
Boston Scientific expects first-quarter 2022 operational revenue growth in the range of 7% to 10% versus 2021. This excludes an approximate 200-basis point headwind from foreign exchange based on current rates but includes a 210-basis point contribution from the acquisitions of Preventice, Farapulse, and Lumenis, and $13 million of pre-divestiture specialty pharmaceutical sales in 2021. Excluding the impact of closed acquisitions and divestitures, the company expects first-quarter 2022 organic revenue growth in the range of 5% to 8% from the year-ago period. Meanwhile, the Baylis Medical acquisition, which closed in early February, is expected to have had a partial quarter contribution to the company’s Q1 top line.
Meanwhile, BSX’s top line is likely to have improved year over year with the non-COVID elective medical procedures running in a full-fledged way in the United States and other regions across the globe. Given an improving scenario along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, Boston Scientific is well-positioned to register strong first quarter of 2022 results.
Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
However, the rate of growth is expected to have remained sluggish compared with fourth-quarter 2021 levels, thanks to the emergence of the more contagious Omicron and Omicon XE variants of COVID-19 in the past few months. This scenario resulted in significant staffing shortages and supply disruption through January and February.
On a geographic basis, every market of Boston Scientific is expected to have registered broad-based growth in the quarter under review from first-quarter 2021 levels, despite COVID-related uncertainties. The company is expected to have registered strong growth in EMEA within PI, EP, Endo and Neuromodulation divisions fueled by new product launches like TheraSphere, POLARx and AXIOS. In the Asia Pacific — particularly in Japan, China and Australia — product launches are expected to have contributed to the company’s top line on the rise in vaccination rates. Further, Ranger Drug-Coated Balloon and the newly-launched POLARx are likely to have contributed to growth in Japan.
Within the Interventional Cardiology (IC) business, the company is expected to have registered year-over-year growth in Structural Heart Valves, WATCHMAN and Complex PCI and Imaging franchises. The company is expected to report a sequential rise in WATCHMAN franchise revenues, driven by the increasing hospital and physician utilization rates in the United States and Europe. The company had earlier talked about expanding its U.S. Vercise Genus offering in 2022 in partnership with Brainlab. This development might have positively contributed to Q1’s IC revenues.
In Structural Heart franchises, the ACURATE neo2 launch in Europe is expected to have registered positive performance. Sentinel, the company’s cerebral embolic protection device, exceeded 20% market share in the United States where it's utilized. This momentum is likely to have continued in the to-be-reported quarter.
Within coronary therapies, drug-eluting stents continued to be a challenge from a pricing standpoint. Nevertheless, the company is expected to have witnessed strong growth in Complex PCI and Imaging, with strength in RotaPro and IVUS.
Within the Peripheral Interventions (PI) business, first-quarter sales are expected to have been strong, banking on a favorable mix of high acuity and outpatient site of care for procedures as well as a category-leading portfolio and strong cadence of product launches. Interventional Oncology is expected to have gained from strong momentum in TheraSphere. In Venous, Varithena is expected to have recorded solid first-quarter numbers and gained share in the varicose vein market.
Within Urology/ Pelvic Health, sales of Stone, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth. The Lumenis acquisition (closed in September) is expected to have made a full-quarter contribution to the company’s sales. The LithoVue, SpaceOAR and Rezum product lines are expected to have performed strongly. Boston Scientific continues to expect urology/ pelvic health to have one of the faster potential recovery curves, aided by a higher office ASE mix for most elective procedures.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven fourth-quarter revenues. The launch of AXIOS, Resolution Ultra hemostasis clip and single-use scopes are expected to have contributed to the company’s top line in the to-be-reported quarter. EXALT B, which is available in both the United Americas and Europe, is expected to have driven the company’s endoscopy sales.
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. The ongoing launch of the next-gen WaveWriter Alpha SCS system with Cognita digital solutions and continued clinical evidence generation is expected to have boosted the top line.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $2.95 billion, suggesting an improvement of 7.3% from the prior-year quarter’s reported number. The consensus mark for adjusted earnings stands at 38 cents per share, implying a 2.7% 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 -0.53%. 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 have the right combination of elements to post an earnings beat this quarter.
Lucira Health has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x is significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +15.62% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected to be 41.83%.
Meridian Bioscience has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.