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What's in Store for Boston Scientific (BSX) in Q4 Earnings?
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Boston Scientific Corporation (BSX - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Jan 31, before the opening bell.
In the last reported quarter, the company’s earnings per share of 50 cents exceeded the Zacks Consensus Estimate by 4.2%. BSX’s bottom line beat estimates in three of the trailing four quarters and missed on one occasion. The company has a trailing four-quarter earnings surprise of 4.34% on average.
Factors at Play
With U.S. hospitals reporting an increase in the number of procedure volumes during the months of the fourth quarter of 2023, Boston Scientific, with its innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, is well-positioned to register decent results for this period.
Boston Scientific expects fourth-quarter 2023 reported revenue growth to be in the range of 9-11% year over year. Excluding an approximate neutral impact from foreign exchange and the contribution from closed acquisitions and divestitures, the company expects fourth-quarter 2023 organic revenue growth to be in the range of 8% to 10%.
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 fourth quarter.
On a geographic basis, despite all macroeconomic headwinds, the company registered strong growth in every geographic region in the last reported quarter, with core 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 fourth quarter.
The company is expected to have registered strong growth in the Asia Pacific, led by strength in China and Japan. Growth in Japan is expected to have been fueled by new products, most notably AGENT DCB, Rezum, POLARx FIT and WATCHMAN FLX. Further, physician demand for the company’s differentiated AGENT DCB is expected to have remained high in Japan, with BSX gaining market leadership after launching the product earlier this year.
Performance in China is expected to have been led by the company’s advanced portfolio, with particular strength in its interventional cardiology therapies, WATCHMAN, CRM and PI business units.
The Zacks Consensus Estimate for Boston Scientific’s APAC revenues indicates a 12.5% improvement in the fourth quarter.
In EMEA, the company is expected to have registered growth 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 and POLARx.
Boston Scientific is particularly optimistic about the full-year 2023 performance 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 fourth-quarter results.
The Zacks Consensus Estimate for EMEA revenues implies a 14.8% improvement in the fourth quarter.
The newly formed WATCHMAN subsegment within the Cardiovascular division has shown meaningful strength in 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 FDA approval for the WATCHMAN FLX Pro in September, this momentum is expected to have continued within the WATCHMAN franchise.
The Zacks Consensus Estimate for WATCHMAN revenues suggests an 18.2% improvement in the fourth quarter.
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 backed by solid European performance with the ACURATE neo2 TAVR platform. The coronary therapies franchise in the fourth quarter is likely to have been driven by the company’s differentiated imaging franchise and the recent clearance for the AVVIGO+ Guidance System. However, this might have been offset by the ongoing price pressure in drug-eluting stents.
The consensus estimate for Interventional Cardiology revenues projects a 4.3% improvement in the fourth quarter.
Within the Peripheral Interventions business, fourth-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, arterial franchise revenues are expected to have been strong, led by the company’s drug-eluting portfolio.
Peripheral Interventions revenues are expected to showcase an improvement of 11.1% in the fourth quarter.
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 launched its EMBOLD Soft and Packing Coils, which, along with the EMBOLD fibroid coil, complete its detachable coil system.
Further, Boston Scientific recently received FDA clearance to expand the indication of the Visual ICE Cryoablation System to treat pain associated with tumors that have metastasized to bone in patients who are unable to receive standard radiation therapy. These are expected to have strongly contributed to the fourth 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 and Rezum in key countries.
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 are 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, is likely to have contributed to the top line in the quarter to be reported. The growth momentum is expected to have continued with the recent U.S. marketing authorization for an expanded indication of the AXIOS stent to include gallbladder drainage, increasing access to more patients with this platform.
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, FAST and Vercise Genus are expected to have boosted the top line.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $3.59 billion, suggesting an improvement of 10.7% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 51 cents per share, implying a 13.3% 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 #3.
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.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results on Mar 4.
RXST has an expected long-term earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Masimo (MASI - Free Report) currently has an Earnings ESP of +10.72% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 27.
MASI has an earnings yield of 2.69% against the industry’s -5.04%. In the last reported quarter, the company delivered an earnings surprise of 6.78%.
Image: Bigstock
What's in Store for Boston Scientific (BSX) in Q4 Earnings?
Boston Scientific Corporation (BSX - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Jan 31, before the opening bell.
In the last reported quarter, the company’s earnings per share of 50 cents exceeded the Zacks Consensus Estimate by 4.2%. BSX’s bottom line beat estimates in three of the trailing four quarters and missed on one occasion. The company has a trailing four-quarter earnings surprise of 4.34% on average.
Factors at Play
With U.S. hospitals reporting an increase in the number of procedure volumes during the months of the fourth quarter of 2023, Boston Scientific, with its innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, is well-positioned to register decent results for this period.
Boston Scientific expects fourth-quarter 2023 reported revenue growth to be in the range of 9-11% year over year. Excluding an approximate neutral impact from foreign exchange and the contribution from closed acquisitions and divestitures, the company expects fourth-quarter 2023 organic revenue growth to be in the range of 8% to 10%.
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 fourth quarter.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
On a geographic basis, despite all macroeconomic headwinds, the company registered strong growth in every geographic region in the last reported quarter, with core 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 fourth quarter.
The company is expected to have registered strong growth in the Asia Pacific, led by strength in China and Japan. Growth in Japan is expected to have been fueled by new products, most notably AGENT DCB, Rezum, POLARx FIT and WATCHMAN FLX. Further, physician demand for the company’s differentiated AGENT DCB is expected to have remained high in Japan, with BSX gaining market leadership after launching the product earlier this year.
Performance in China is expected to have been led by the company’s advanced portfolio, with particular strength in its interventional cardiology therapies, WATCHMAN, CRM and PI business units.
The Zacks Consensus Estimate for Boston Scientific’s APAC revenues indicates a 12.5% improvement in the fourth quarter.
In EMEA, the company is expected to have registered growth 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 and POLARx.
Boston Scientific is particularly optimistic about the full-year 2023 performance 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 fourth-quarter results.
The Zacks Consensus Estimate for EMEA revenues implies a 14.8% improvement in the fourth quarter.
The newly formed WATCHMAN subsegment within the Cardiovascular division has shown meaningful strength in 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 FDA approval for the WATCHMAN FLX Pro in September, this momentum is expected to have continued within the WATCHMAN franchise.
The Zacks Consensus Estimate for WATCHMAN revenues suggests an 18.2% improvement in the fourth quarter.
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 backed by solid European performance with the ACURATE neo2 TAVR platform. The coronary therapies franchise in the fourth quarter is likely to have been driven by the company’s differentiated imaging franchise and the recent clearance for the AVVIGO+ Guidance System. However, this might have been offset by the ongoing price pressure in drug-eluting stents.
The consensus estimate for Interventional Cardiology revenues projects a 4.3% improvement in the fourth quarter.
Within the Peripheral Interventions business, fourth-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, arterial franchise revenues are expected to have been strong, led by the company’s drug-eluting portfolio.
Peripheral Interventions revenues are expected to showcase an improvement of 11.1% in the fourth quarter.
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 launched its EMBOLD Soft and Packing Coils, which, along with the EMBOLD fibroid coil, complete its detachable coil system.
Further, Boston Scientific recently received FDA clearance to expand the indication of the Visual ICE Cryoablation System to treat pain associated with tumors that have metastasized to bone in patients who are unable to receive standard radiation therapy. These are expected to have strongly contributed to the fourth 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 and Rezum in key countries.
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 are 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, is likely to have contributed to the top line in the quarter to be reported. The growth momentum is expected to have continued with the recent U.S. marketing authorization for an expanded indication of the AXIOS stent to include gallbladder drainage, increasing access to more patients with this platform.
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, FAST and Vercise Genus are expected to have boosted the top line.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $3.59 billion, suggesting an improvement of 10.7% from the prior-year quarter’s reported number.
The consensus mark for adjusted earnings stands at 51 cents per share, implying a 13.3% 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 #3.
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.
SiBone (SIBN - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results on Feb 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results on Mar 4.
RXST has an expected long-term earnings growth rate of 21%. The company surpassed earnings in each of the trailing four quarters, the average being 18.25%.
Masimo (MASI - Free Report) currently has an Earnings ESP of +10.72% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 27.
MASI has an earnings yield of 2.69% against the industry’s -5.04%. In the last reported quarter, the company delivered an earnings surprise of 6.78%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.