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Will Boston Scientific (BSX) Beat Q4 Earnings Estimates?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report fourth-quarter and full-year 2022 results on Feb 1, before the opening bell.
In the last reported quarter, the company’s earnings per share of 44 cents missed the Zacks Consensus Estimate by 2.27%. BSX’s bottom line beat estimates in three of the trailing four quarters and missed in one. The company has a trailing four-quarter earnings surprise of 1.85%, on average.
Factors at Play
Boston Scientific expects fourth-quarter 2022 operational revenue growth in the range of 8.5% to 10.5% year over year. This excludes an approximate 650-basis point headwind from foreign exchange based on rates during the Q3 earnings release. Excluding a 150-basis point contribution from the acquisition of Baylis, the company expects fourth-quarter 2022 organic revenue growth to be in the range of 7% to 9%.
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 decent fourth-quarter 2022 results.
However, the rate of growth is expected to have remained sluggish, thanks to the back-to-back attack of infectious diseases worldwide, which resulted in significant staffing shortages and supply disruption through the months of the fourth 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 Q4.
Boston Scientific Corporation Price and EPS Surprise
On a geographic basis, despite all macroeconomic headwinds, in the last reported quarter, the company registered double-digit and faster growth in nearly every business than the peer group growth. With macroeconomic factors being more or less the same, this trend is expected to have been repeated in the Q4 months 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 new product rollouts, including ACURATE neo2 TAVR. In the Asia Pacific — particularly in Japan and Australia — product launches are expected to have contributed to the company’s top line. However, given the COVID wave and related restrictions in China, the underlying procedural volumes have been impacted in the fourth 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. 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 Q4.
The Interventional Cardiology business is expected to have registered year-over-year growth in Structural Heart Valves and Complex PCI and Imaging franchises. In the United States, Q4 performance is likely to have been driven by the coronary therapies franchise, which performed well in the third quarter, driven by strong performance with the company’s differentiated imaging franchise. Internationally, strong growth is expected to have continued, backed by strong performance in Europe with the ACURATE neo2 TAVR platform.
Within the Peripheral Interventions business, fourth-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. The recentFDA approval for a line extension of ELUVIA and the launch of the longest drug-eluting stent for peripheral arterial disease in the United States are expected to have contributed to the Q4 top line.
Interventional Oncologyis 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 and Mexico and Rezum in Japan.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven fourth-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 U.S. launches of WaveWriter Alpha and Vercise Genusare are expected to have boosted the top line.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $3.24 billion, suggesting an improvement of 3.5% from the prior-year quarter’s reported number. Our model estimates 3.1% growth in Q4 revenues on a year-over-year basis.
The consensus mark for adjusted earnings stands at 47 cents per share, implying a 4.4% rise from the year-ago quarter’s reported figure. Per the Zacks model, adjusted earnings growth is expected to be 2.1% year over year.
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 exactly the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of +0.39%. 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.
Other 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.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
Hologic (HOLX - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of #2. Hologic is scheduled to release first-quarter fiscal 2023 results on Feb 1.
Hologic’s long-term historical earnings growth rate is estimated at 23.4%. Hologic’s earnings yield of 4.35% compares favorably with the industry’s -6.74%.
Laboratory Corporation of America Holdings or LabCorp (LH - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is scheduled to release fourth-quarter 2022 results on Feb 16.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
Image: Bigstock
Will Boston Scientific (BSX) Beat Q4 Earnings Estimates?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report fourth-quarter and full-year 2022 results on Feb 1, before the opening bell.
In the last reported quarter, the company’s earnings per share of 44 cents missed the Zacks Consensus Estimate by 2.27%. BSX’s bottom line beat estimates in three of the trailing four quarters and missed in one. The company has a trailing four-quarter earnings surprise of 1.85%, on average.
Factors at Play
Boston Scientific expects fourth-quarter 2022 operational revenue growth in the range of 8.5% to 10.5% year over year. This excludes an approximate 650-basis point headwind from foreign exchange based on rates during the Q3 earnings release. Excluding a 150-basis point contribution from the acquisition of Baylis, the company expects fourth-quarter 2022 organic revenue growth to be in the range of 7% to 9%.
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 decent fourth-quarter 2022 results.
However, the rate of growth is expected to have remained sluggish, thanks to the back-to-back attack of infectious diseases worldwide, which resulted in significant staffing shortages and supply disruption through the months of the fourth 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 Q4.
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 double-digit and faster growth in nearly every business than the peer group growth. With macroeconomic factors being more or less the same, this trend is expected to have been repeated in the Q4 months 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 new product rollouts, including ACURATE neo2 TAVR. In the Asia Pacific — particularly in Japan and Australia — product launches are expected to have contributed to the company’s top line. However, given the COVID wave and related restrictions in China, the underlying procedural volumes have been impacted in the fourth 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. 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 Q4.
The Interventional Cardiology business is expected to have registered year-over-year growth in Structural Heart Valves and Complex PCI and Imaging franchises. In the United States, Q4 performance is likely to have been driven by the coronary therapies franchise, which performed well in the third quarter, driven by strong performance with the company’s differentiated imaging franchise. Internationally, strong growth is expected to have continued, backed by strong performance in Europe with the ACURATE neo2 TAVR platform.
Within the Peripheral Interventions business, fourth-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. The recentFDA approval for a line extension of ELUVIA and the launch of the longest drug-eluting stent for peripheral arterial disease in the United States are expected to have contributed to the Q4 top line.
Interventional Oncologyis 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 and Mexico and Rezum in Japan.
Within Endoscopy, broad-based recovery across regions and growing strength in infection prevention are expected to have driven fourth-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 U.S. launches of WaveWriter Alpha and Vercise Genusare are expected to have boosted the top line.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $3.24 billion, suggesting an improvement of 3.5% from the prior-year quarter’s reported number. Our model estimates 3.1% growth in Q4 revenues on a year-over-year basis.
The consensus mark for adjusted earnings stands at 47 cents per share, implying a 4.4% rise from the year-ago quarter’s reported figure. Per the Zacks model, adjusted earnings growth is expected to be 2.1% year over year.
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 exactly the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of +0.39%. 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.
Other 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.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +5.75% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
Hologic (HOLX - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of #2. Hologic is scheduled to release first-quarter fiscal 2023 results on Feb 1.
Hologic’s long-term historical earnings growth rate is estimated at 23.4%. Hologic’s earnings yield of 4.35% compares favorably with the industry’s -6.74%.
Laboratory Corporation of America Holdings or LabCorp (LH - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is scheduled to release fourth-quarter 2022 results on Feb 16.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.