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Here's Why You Should Retain Boston Scientific (BSX) Now
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Boston Scientific Corporation (BSX - Free Report) is well poised for growth in coming quarters, backed by consistent legacy business growth across several geographies despite numerous macroeconomic issues. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of GI and pulmonary treatment options. However, unfavorable currency movements and stiff competition are a concern.
In the past year, this Zacks Rank #3 (Hold) stock has gained 32.8% compared with the 0.7% rise of the industry and a 13.3% decline of the S&P 500.
The renowned manufacturer of medical devices and products has a market capitalization of $78.51 billion. The company’s long-term projected growth of 12.8% compares with the industry’s growth projection of 13.2%.
Let’s delve deeper.
Factors At Play
Geographic Expansion Continues: Boston Scientific successfully expands operations across different geographies outside the United States. In 2022, 40% of the company’s consolidated revenues came from international regions.
In the last reported second quarter of 2023, despite the ongoing weaknesses in Russia, emerging markets registered sturdy growth, primarily banking on solid performance in China. During this period, emerging markets' net sales grew 24% on an operational basis, year over year.
MedSurg Market Share Gain Impressive: Boston Scientific is consistently registering fast recovery within its MedSurg segment following pandemic-led mayhem. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Notably, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises.
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In the second quarter of 2023, the company reported strong organic growth contribution from Baylis Medical (the acquisition was closed in February 2022). The Apollo integration is also progressing well and the company recently received FDA clearance for OverStitchNXT, a suturing system that enables suture placement during advanced endoscopicprocedures.
Upbeat Guidance: Boston Scientific’s full-year net sales growth is expected in the range of 10.5-11.5% on a reported basis (earlier estimate was 8.5-10.5% growth). Net sales growth is expected to be in the range of 10-11% on an organic basis (8-10%).
Full-year adjusted earnings per share is expected to be $1.96 to $2.00 ($1.90 to $1.96). The Zacks Consensus Estimate is currently pegged at $1.95, below the guidance.
For the third quarter of 2023, revenue growth is projected in the range of approximately 8.5-10.5% on a reported basis (an increase of 7-9% organically).
Adjusted earnings are expected in the range of 46-48 cents per share.
Downsides
Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a significant dampener over the last few quarters, as with other important MedTech players.
Competitive Landscape: The presence of many players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.
Estimate Trend
The Zacks Consensus Estimate for Boston Scientific’s 2023 earnings is pegged at $1.99 per share, indicating an 16.4% increase from the 2022 reported number.
The Zacks Consensus Estimate for 2023 revenues is pegged at $14.07 billion, suggesting a 10.9% rise from the 2022 figure.
Haemonetics’ stock has risen 19.9% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days. It currently carries Zacks Rank #1.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 167.5% in the past year against the industry’s decline of 1.7%. It currently carries Zacks Rank #2 (Buy).
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 31% in the past year compared with the industry’s rise of 1.9%. It currently carries Zacks Rank #2.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.
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Here's Why You Should Retain Boston Scientific (BSX) Now
Boston Scientific Corporation (BSX - Free Report) is well poised for growth in coming quarters, backed by consistent legacy business growth across several geographies despite numerous macroeconomic issues. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of GI and pulmonary treatment options. However, unfavorable currency movements and stiff competition are a concern.
In the past year, this Zacks Rank #3 (Hold) stock has gained 32.8% compared with the 0.7% rise of the industry and a 13.3% decline of the S&P 500.
The renowned manufacturer of medical devices and products has a market capitalization of $78.51 billion. The company’s long-term projected growth of 12.8% compares with the industry’s growth projection of 13.2%.
Let’s delve deeper.
Factors At Play
Geographic Expansion Continues: Boston Scientific successfully expands operations across different geographies outside the United States. In 2022, 40% of the company’s consolidated revenues came from international regions.
In the last reported second quarter of 2023, despite the ongoing weaknesses in Russia, emerging markets registered sturdy growth, primarily banking on solid performance in China. During this period, emerging markets' net sales grew 24% on an operational basis, year over year.
MedSurg Market Share Gain Impressive: Boston Scientific is consistently registering fast recovery within its MedSurg segment following pandemic-led mayhem. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Notably, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises.
In the second quarter of 2023, the company reported strong organic growth contribution from Baylis Medical (the acquisition was closed in February 2022). The Apollo integration is also progressing well and the company recently received FDA clearance for OverStitchNXT, a suturing system that enables suture placement during advanced endoscopicprocedures.
Upbeat Guidance: Boston Scientific’s full-year net sales growth is expected in the range of 10.5-11.5% on a reported basis (earlier estimate was 8.5-10.5% growth). Net sales growth is expected to be in the range of 10-11% on an organic basis (8-10%).
Full-year adjusted earnings per share is expected to be $1.96 to $2.00 ($1.90 to $1.96). The Zacks Consensus Estimate is currently pegged at $1.95, below the guidance.
For the third quarter of 2023, revenue growth is projected in the range of approximately 8.5-10.5% on a reported basis (an increase of 7-9% organically).
Adjusted earnings are expected in the range of 46-48 cents per share.
Downsides
Exposure to Currency Movement: With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a significant dampener over the last few quarters, as with other important MedTech players.
Competitive Landscape: The presence of many players has made the medical devices market highly competitive. The company participates in several markets, including Cardiovascular, CRM, Endosurgery and Neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew and Edwards Lifesciences, apart from several other smaller companies.
Estimate Trend
The Zacks Consensus Estimate for Boston Scientific’s 2023 earnings is pegged at $1.99 per share, indicating an 16.4% increase from the 2022 reported number.
The Zacks Consensus Estimate for 2023 revenues is pegged at $14.07 billion, suggesting a 10.9% rise from the 2022 figure.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Quanterix (QTRX - Free Report) and SiBone (SIBN - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ stock has risen 19.9% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days. It currently carries Zacks Rank #1.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 167.5% in the past year against the industry’s decline of 1.7%. It currently carries Zacks Rank #2 (Buy).
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 31% in the past year compared with the industry’s rise of 1.9%. It currently carries Zacks Rank #2.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.