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What's in Store for Boston Scientific (BSX) in Q3 Earnings?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before the opening bell.
In the last reported quarter, the company’s earnings per share of 53 cents exceeded the Zacks Consensus Estimate by 8.2%. 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 2.73% on average.
Factors at Play
Given the improving 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 third-quarter 2023 results.
Boston Scientific expects third-quarter 2023 reported revenue growth to be in the range of 8-10% year over year. Excluding an approximate 50 basis points tailwind from foreign exchange and contribution from closed acquisitions and divestitures, the company expects third-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 supply environment in limited geographies, particularly in Europe, through the months of the third quarter. Further, given the ongoing inflationary situation, the business is expected to have faced the hurdle of surging labor and raw material costs, which might have weighed on BSX’s bottom line in the third quarter. Our model estimate for reported and organic revenue growth is 9% and 7.5%, respectively, for the third quarter.
On a geographic basis, despite all macroeconomic headwinds, the company registered strong growth in every geographic region in the last reported quarter, with most of the business units gaining or maintaining market share. With global staffing issues and the supply situation gradually improving, the international business of BSX is expected to have improved further in the third quarter.
Boston Scientific Corporation Price and EPS Surprise
The company is expected to have registered strong growth in Asia Pacific, led by strength in China and Japan. Japan's growth is expected to be fueled by new products, including agents and drug-coated balloons, for the coronary arteries. Further, the resumption of the company’s minimally invasive Benign prostatic hyperplasia (BPH) technology might have contributed to the Q3 top line. China performance is expected to be led by the company’s advanced portfolio, with particular strength in its interventional cardiology therapies, WATCHMAN, CRM and PI business units.
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. The company is expected to have witnessed strength in FARAPULSE, POLARx, ACURATE neo2 and LUX-DX.
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 third-quarter results.
Going by our model, the Rest of the World Medical Device arm of Boston Scientific is projected to show a strong 12.7% improvement in the third quarter.
The newly-formed WATCHMAN subsegment within the Cardiovascular division is showing meaningful strength over recent times. It is once again expected to report strong growth in the to-be-reported quarter on sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization and commercial execution. With the latest FDA approval for the WATCHMAN FLX Pro in September, this momentum is expected to have continued within the WATCHMAN franchise.
Our model estimates the Watchman business to register $272.4 million in revenues, up 4% 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 franchises.
Structural Heart Valves, Complex PCI and Imaging franchises, too are expected to have recorded strong growth. Growth is expected to continue, backed by solid European performance with the ACURATE neo2 TAVR platform. The coronary therapies franchise in the third quarter is likely to have been driven by the company’s differentiated imaging franchise and the recent launch of the agent drug-coated balloon in Japan. However, this might have been offset by the ongoing price pressure in drug-eluting stents.
Our model estimates this business to register $591 million in revenues, suggesting an 8.6% growth year over year.
Within the Peripheral Interventions business, third-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. Specifically, the arterial franchise revenue is expected to report strong growth led by the company’s drug eluting portfolio.
Our model estimates this business to register $503 million of revenues, indicating 8.2% 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. Recently, the company received clearance for the EMBOLD Soft and Packing Coils, which, along with the EMBOLD fibroid coil, complete its detachable coil system. BSX has also begun the limited market release for Obsidio, the only conformable gel embolic material indicated for peripheral vasculature, adding to its robust embolization portfolio. These are expected to have strongly contributed to the third quarter’s top line.
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 third-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 successful integration of Apollo Endosurgery is expected to have contributed to the third-quarter sales number. Recently, the company received FDA clearance for OverStitch NXT, a suturing system that enables suture placement during advanced endoscopic procedures. This, too, shall have contributed positively to the top line in the quarter to be reported.
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.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $3.47 billion, suggesting an improvement of 9.3% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 48 cents per share, implying an 11.6% 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 not the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of 0.00%. 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.
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.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS indicates an increase of 65.9% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates an improvement of 54.6% from the year-ago reported figure.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +29.81% and a Zacks Rank #3. The company is expected to release third-quarter 2023 results on Nov 7, 2023.
INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.61%. The Zacks Consensus Estimate for Inspire Medical’s third-quarter 2023 EPS implies an increase of 11.7% from the year-ago reported figure.
Image: Bigstock
What's in Store for Boston Scientific (BSX) in Q3 Earnings?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before the opening bell.
In the last reported quarter, the company’s earnings per share of 53 cents exceeded the Zacks Consensus Estimate by 8.2%. 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 2.73% on average.
Factors at Play
Given the improving 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 third-quarter 2023 results.
Boston Scientific expects third-quarter 2023 reported revenue growth to be in the range of 8-10% year over year. Excluding an approximate 50 basis points tailwind from foreign exchange and contribution from closed acquisitions and divestitures, the company expects third-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 supply environment in limited geographies, particularly in Europe, through the months of the third quarter. Further, given the ongoing inflationary situation, the business is expected to have faced the hurdle of surging labor and raw material costs, which might have weighed on BSX’s bottom line in the third quarter. Our model estimate for reported and organic revenue growth is 9% and 7.5%, respectively, for the third quarter.
On a geographic basis, despite all macroeconomic headwinds, the company registered strong growth in every geographic region in the last reported quarter, with most of the business units gaining or maintaining market share. With global staffing issues and the supply situation gradually improving, the international business of BSX is expected to have improved further in the third quarter.
Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
The company is expected to have registered strong growth in Asia Pacific, led by strength in China and Japan. Japan's growth is expected to be fueled by new products, including agents and drug-coated balloons, for the coronary arteries. Further, the resumption of the company’s minimally invasive Benign prostatic hyperplasia (BPH) technology might have contributed to the Q3 top line. China performance is expected to be led by the company’s advanced portfolio, with particular strength in its interventional cardiology therapies, WATCHMAN, CRM and PI business units.
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. The company is expected to have witnessed strength in FARAPULSE, POLARx, ACURATE neo2 and LUX-DX.
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 third-quarter results.
Going by our model, the Rest of the World Medical Device arm of Boston Scientific is projected to show a strong 12.7% improvement in the third quarter.
The newly-formed WATCHMAN subsegment within the Cardiovascular division is showing meaningful strength over recent times. It is once again expected to report strong growth in the to-be-reported quarter on sustained momentum from the second-generation WATCHMAN FLX, ongoing clinical evidence, globalization and commercial execution. With the latest FDA approval for the WATCHMAN FLX Pro in September, this momentum is expected to have continued within the WATCHMAN franchise.
Our model estimates the Watchman business to register $272.4 million in revenues, up 4% 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 franchises.
Structural Heart Valves, Complex PCI and Imaging franchises, too are expected to have recorded strong growth. Growth is expected to continue, backed by solid European performance with the ACURATE neo2 TAVR platform. The coronary therapies franchise in the third quarter is likely to have been driven by the company’s differentiated imaging franchise and the recent launch of the agent drug-coated balloon in Japan. However, this might have been offset by the ongoing price pressure in drug-eluting stents.
Our model estimates this business to register $591 million in revenues, suggesting an 8.6% growth year over year.
Within the Peripheral Interventions business, third-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. Specifically, the arterial franchise revenue is expected to report strong growth led by the company’s drug eluting portfolio.
Our model estimates this business to register $503 million of revenues, indicating 8.2% 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. Recently, the company received clearance for the EMBOLD Soft and Packing Coils, which, along with the EMBOLD fibroid coil, complete its detachable coil system. BSX has also begun the limited market release for Obsidio, the only conformable gel embolic material indicated for peripheral vasculature, adding to its robust embolization portfolio. These are expected to have strongly contributed to the third quarter’s top line.
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 third-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 successful integration of Apollo Endosurgery is expected to have contributed to the third-quarter sales number. Recently, the company received FDA clearance for OverStitch NXT, a suturing system that enables suture placement during advanced endoscopic procedures. This, too, shall have contributed positively to the top line in the quarter to be reported.
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.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $3.47 billion, suggesting an improvement of 9.3% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 48 cents per share, implying an 11.6% 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 not the case as you can see below.
Earnings ESP: Boston Scientific has an Earnings ESP of 0.00%. 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.
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.
Ligand Pharmaceuticals (LGND - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #1. The company is expected to release third-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS indicates an increase of 65.9% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates an improvement of 54.6% from the year-ago reported figure.
Inspire Medical Systems (INSP - Free Report) has an Earnings ESP of +29.81% and a Zacks Rank #3. The company is expected to release third-quarter 2023 results on Nov 7, 2023.
INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.61%. The Zacks Consensus Estimate for Inspire Medical’s third-quarter 2023 EPS implies an increase of 11.7% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.