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Will Boston Scientific (BSX) Beat Q2 Earnings Estimates?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before the opening bell.
In the last reported quarter, the company’s earnings per share of 47 cents exceeded the Zacks Consensus Estimate by 9.3%. 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 1.88%, on average.
Factors at Play
In the post-pandemic era, given the improved scenario in terms of hospital visits and elective medical procedures, along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, BSX is well-positioned to register decent second-quarter 2023 results.
Boston Scientific expects second-quarter 2023 reported revenue growth to be in the range of 6.5-8.5% year over year. Excluding an approximate 100 basis points headwind from foreign exchange and contribution from closed acquisitions and divestitures, the company expects second-quarter 2023 organic revenue growth to be in the range of 7% to 9%.
However, the rate of growth is expected to have remained sluggish amid a challenging macroeconomic environment in the form of limitations in supply through the months of the second 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 second quarter. Overall, our model estimate for reported and organic revenue growth is 7.4% and 8%, respectively for the second 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 global staffing issues and inflationary situation gradually improving, the international business of BSX is expected to have improved further in the second quarter.
The company is expected to have registered strong growth in EMEA within structural heart, including Transcatheter aortic valve replacement, 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 given the ongoing momentum across EMEA, particularly in the company’s advanced portfolio of Electrophysiology and further opportunity with Baylis in the Access Solutions franchise. This momentum is likely to be reflected in the second-quarter results.
Going by our model, the Rest of the World Medical Device arm of Boston Scientific is projected to show a strong 11.1% improvement in the second quarter.
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. Demand remained strong for WATCHMAN FLX till the first-quarter earnings call and the company, by that time, treated more than 300,000 patients globally. This trend is expected to have continued through the second quarter as well.
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.
Our model estimates the Watchman business to register $260.4 million in revenues, up 7.5% year over year.
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, Complex PCI and Imaging franchises too are expected to have recorded strong growth. In the United States, the second-quarter performance is likely to have been driven by the coronary therapies franchise, driven by 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.
Our model estimates this business to register $621 million of revenues, implying 8.2% growth year over year.
Within the Peripheral Interventions business, second-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.
Our model estimates this business to register $546.7 million of revenues, indicating 14.4% growth year over year.
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 strong performances of LithoVue, Rezum and SpaceOAR in key countries. The growth momentum is expected to have continued with the recent limited market release for LithoVue Elite.
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. Further, the recent launch of the company’s third generation EXALT D and the latest acquisition of Apollo Endosurgery are expected to have contributed to the second-quarter sales number.
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.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $3.49 billion, suggesting an improvement of 7.7% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 49 cents per share, implying a 11.4% 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. This is exactly the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of +0.47%. 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 #2.
Other Stocks to Consider
Here are a few other medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate a massive increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Image: Bigstock
Will Boston Scientific (BSX) Beat Q2 Earnings Estimates?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before the opening bell.
In the last reported quarter, the company’s earnings per share of 47 cents exceeded the Zacks Consensus Estimate by 9.3%. 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 1.88%, on average.
Factors at Play
In the post-pandemic era, given the improved scenario in terms of hospital visits and elective medical procedures, along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, BSX is well-positioned to register decent second-quarter 2023 results.
Boston Scientific expects second-quarter 2023 reported revenue growth to be in the range of 6.5-8.5% year over year. Excluding an approximate 100 basis points headwind from foreign exchange and contribution from closed acquisitions and divestitures, the company expects second-quarter 2023 organic revenue growth to be in the range of 7% to 9%.
However, the rate of growth is expected to have remained sluggish amid a challenging macroeconomic environment in the form of limitations in supply through the months of the second 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 second quarter. Overall, our model estimate for reported and organic revenue growth is 7.4% and 8%, respectively for the second 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 global staffing issues and inflationary situation gradually improving, the international business of BSX is expected to have improved further in the second quarter.
The company is expected to have registered strong growth in EMEA within structural heart, including Transcatheter aortic valve replacement, 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 given the ongoing momentum across EMEA, particularly in the company’s advanced portfolio of Electrophysiology and further opportunity with Baylis in the Access Solutions franchise. This momentum is likely to be reflected in the second-quarter results.
Going by our model, the Rest of the World Medical Device arm of Boston Scientific is projected to show a strong 11.1% improvement in the second quarter.
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. Demand remained strong for WATCHMAN FLX till the first-quarter earnings call and the company, by that time, treated more than 300,000 patients globally. This trend is expected to have continued through the second quarter as well.
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.
Our model estimates the Watchman business to register $260.4 million in revenues, up 7.5% year over year.
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, Complex PCI and Imaging franchises too are expected to have recorded strong growth. In the United States, the second-quarter performance is likely to have been driven by the coronary therapies franchise, driven by 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.
Our model estimates this business to register $621 million of revenues, implying 8.2% growth year over year.
Within the Peripheral Interventions business, second-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.
Our model estimates this business to register $546.7 million of revenues, indicating 14.4% growth year over year.
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 strong performances of LithoVue, Rezum and SpaceOAR in key countries. The growth momentum is expected to have continued with the recent limited market release for LithoVue Elite.
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. Further, the recent launch of the company’s third generation EXALT D and the latest acquisition of Apollo Endosurgery are expected to have contributed to the second-quarter sales number.
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.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $3.49 billion, suggesting an improvement of 7.7% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 49 cents per share, implying a 11.4% 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. This is exactly the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of +0.47%. 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 #2.
Other Stocks to Consider
Here are a few other medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank of #2. The company is expected to release second-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
TG Therapeutics has an expected earnings growth rate of 37.7% for 2023. TGTX’s 2023 projected revenues of $87.65 million indicate a massive increase from the year-ago reported figure of $2.8 million.
Dentsply Sirona (XRAY - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank of #2. Dentsply Sirona is scheduled to release second-quarter fiscal 2023 results on Aug 3.
XRAY’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other, the average beat being 10.47%. XRAY’s long-term expected growth rate is estimated to be 9.3%.
SiBone (SIBN - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #2. SiBone is scheduled to release second-quarter 2023 results on Aug 7.
SIBN’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 11.11%. The Zacks Consensus Estimate for SIBN’s second-quarter EPS indicates a 22.2% improvement from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.