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What's in Store for Boston Scientific (BSX) in Q2 Earnings?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report second-quarter 2022 results on Jul 27, before the opening bell.
In the last-reported quarter, the company’s earnings per share of 39 cents exceeded the Zacks Consensus Estimate by 2.6%. BSX’s bottom line beat estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 3.88%, on average.
Factors at Play
Boston Scientific expects second-quarter 2022 operational revenue growth in the range of 6% to 9% year over year. This excludes an approximate 300-basis point headwind from foreign exchange based on rates during the time of the Q1 earnings release but includes a 300-basis point contribution from the acquisitions of Farapulse, Lumenis and Baylis. Excluding the impact of acquisitions, the company expects second-quarter 2022 organic revenue growth to be in the range of 3% to 6% against a much tougher year-over-year comparison.
Meanwhile, BSX’s top line is likely to have improved year over year with non-COVID elective medical procedures running in a full-fledged way in the United States and elsewhere across the globe. Given the 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 second-quarter 2022 results.
However, the rate of growth is expected to have remained sluggish, thanks to the emergence of the new coronavirus waves in the past few months. This scenario resulted in significant staffing shortages and supply disruption through January and February. 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 Q2.
Boston Scientific Corporation Price and EPS Surprise
On a geographic basis, every market of Boston Scientific is expected to have registered broad-based growth in the quarter under review both sequentially and year over year, considering the fact that the COVID impacts intensified in the early months of the first quarter of 2022 as well as the second quarter of 2021.
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 new product launches. In the Asia Pacific — particularly in Japan and Australia — product launches are expected to have contributed to the company’s top line. Particularly, the POLARx and Ranger launch in Japan, and the WaveWriter Alpha launch in Australia are expected to have contributed to the top line. However, given the COVID wave and related restrictions in China, Boston Scientific anticipates more pressure on underlying procedural volumes in the second quarter.
In the newly-formed WATCHMAN subsegment within the Cardiovascular division, according to the company, WATCHMAN is on track to deliver full-year double-digit growth with sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization, and commercial execution. This growth should get reflected in the second-quarter results.
The Interventional Cardiology (IC) business is expected to have registered year-over-year growth in Structural Heart Valves and Complex PCI and Imaging franchises. 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 second-quarter IC revenues.
In Structural Heart franchises, the ACURATE neo2 launch in Europe is expected to have registered positive performance in Q2.
Within coronary therapies, FDA clearance of the expanded portfolio of EMERGE PTCA dilatation catheters is expected to have contributed to the second-quarter top line.
Within the Peripheral Interventions (PI) business, second-quarter sales are expected to have been strong, banking on the strong performance of the drug-eluting franchise, supported by ongoing clinical evidence and the company’s category leadership portfolio. within Venous, Varithena is expected to report another quarter of strong growth driven by a strong underlying market and penetration in new accounts.
Interventional Oncology is expected to have gained from strong momentum in TheraSphere. Further, the receipt of FDA approval forEMBOLD, a fiber embolization coil that enhances BSX’ portfolio of embolization technologies should have added to the growth.
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 strong contribution to the company’s sales. The LithoVue, SpaceOAR and Rezum product lines are expected to have performed strongly.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven second-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. The launch of the WaveWriter Alpha system with FAST therapy and the Cognita practice optimization suite of solutions along with the FDA approval for the neural navigator software with STIMVIEW are expected to have boosted the top line.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $3.22 billion, suggesting an improvement of 4.5% from the prior-year quarter’s reported number. The consensus mark for adjusted earnings stands at 42 cents per share, implying a 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. However, this is not the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of -1.07%. 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.
Image: Bigstock
What's in Store for Boston Scientific (BSX) in Q2 Earnings?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report second-quarter 2022 results on Jul 27, before the opening bell.
In the last-reported quarter, the company’s earnings per share of 39 cents exceeded the Zacks Consensus Estimate by 2.6%. BSX’s bottom line beat estimates in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 3.88%, on average.
Factors at Play
Boston Scientific expects second-quarter 2022 operational revenue growth in the range of 6% to 9% year over year. This excludes an approximate 300-basis point headwind from foreign exchange based on rates during the time of the Q1 earnings release but includes a 300-basis point contribution from the acquisitions of Farapulse, Lumenis and Baylis. Excluding the impact of acquisitions, the company expects second-quarter 2022 organic revenue growth to be in the range of 3% to 6% against a much tougher year-over-year comparison.
Meanwhile, BSX’s top line is likely to have improved year over year with non-COVID elective medical procedures running in a full-fledged way in the United States and elsewhere across the globe. Given the 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 second-quarter 2022 results.
However, the rate of growth is expected to have remained sluggish, thanks to the emergence of the new coronavirus waves in the past few months. This scenario resulted in significant staffing shortages and supply disruption through January and February. 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 Q2.
Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
On a geographic basis, every market of Boston Scientific is expected to have registered broad-based growth in the quarter under review both sequentially and year over year, considering the fact that the COVID impacts intensified in the early months of the first quarter of 2022 as well as the second quarter of 2021.
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 new product launches. In the Asia Pacific — particularly in Japan and Australia — product launches are expected to have contributed to the company’s top line. Particularly, the POLARx and Ranger launch in Japan, and the WaveWriter Alpha launch in Australia are expected to have contributed to the top line. However, given the COVID wave and related restrictions in China, Boston Scientific anticipates more pressure on underlying procedural volumes in the second quarter.
In the newly-formed WATCHMAN subsegment within the Cardiovascular division, according to the company, WATCHMAN is on track to deliver full-year double-digit growth with sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization, and commercial execution. This growth should get reflected in the second-quarter results.
The Interventional Cardiology (IC) business is expected to have registered year-over-year growth in Structural Heart Valves and Complex PCI and Imaging franchises. 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 second-quarter IC revenues.
In Structural Heart franchises, the ACURATE neo2 launch in Europe is expected to have registered positive performance in Q2.
Within coronary therapies, FDA clearance of the expanded portfolio of EMERGE PTCA dilatation catheters is expected to have contributed to the second-quarter top line.
Within the Peripheral Interventions (PI) business, second-quarter sales are expected to have been strong, banking on the strong performance of the drug-eluting franchise, supported by ongoing clinical evidence and the company’s category leadership portfolio. within Venous, Varithena is expected to report another quarter of strong growth driven by a strong underlying market and penetration in new accounts.
Interventional Oncology is expected to have gained from strong momentum in TheraSphere. Further, the receipt of FDA approval forEMBOLD, a fiber embolization coil that enhances BSX’ portfolio of embolization technologies should have added to the growth.
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 strong contribution to the company’s sales. The LithoVue, SpaceOAR and Rezum product lines are expected to have performed strongly.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven second-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. The launch of the WaveWriter Alpha system with FAST therapy and the Cognita practice optimization suite of solutions along with the FDA approval for the neural navigator software with STIMVIEW are expected to have boosted the top line.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $3.22 billion, suggesting an improvement of 4.5% from the prior-year quarter’s reported number. The consensus mark for adjusted earnings stands at 42 cents per share, implying a 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. However, this is not the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of -1.07%. 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.
BrainsWay Ltd. (BWAY - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrainsWay’s 2023 earnings growth rate is estimated to be 16.7%. BWAY’s 2023 revenues are expected to growth 17.1% from 2022.
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank of #2.
Alcon long-term earnings growth rate is estimated at 14.3%. ALC’s earnings yield of 3.41% compares favorably with the industry’s (8.09%).
QuidelOrtho Corporation (QDEL - Free Report) currently has an Earnings ESP of +9.17% and a Zacks Rank of #2.
QDEL’s earnings yield of 14.83% compares favorably with the industry’s (-2.63%).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.