Medtech Giant Just Below Buy Point After Earnings Top Views

Boston Scientific (BSX) topped Wall Street’s second-quarter forecasts on Tuesday and raised its full-year outlook, leading BSX stock to break out.


The revenue beat was driven by broad strength, Evercore ISI analyst Vijay Kumar said in a report to clients. Interventional cardiology, electrophysiology, neuromodulation, endoscopy and women’s health sales all topped forecasts. Only cardiac rhythm management was light, organically.

“All in all, in the context of fears of a summer slowdown, we think the beat and above-Street guide raise are enough to sustain Boston Scientific’s momentum,” he said.

On the stock market today, BSX stock rose 3.5% to 45.51. Shares broke out of a flat base with a buy point at 44.73, according to

BSX Stock Rises On Earnings Beat

For the quarter ended June 30, Boston Scientific reported adjusted profit of 40 cents per share on $3.08 billion in sales. Earnings soared 400% year over year and beat BSX stock analysts’ forecast by 3 cents per share. Sales grew 53.6% and topped expectations for $2.94 billion.

Organically, sales grew 52.4%. Compared with pre-pandemic levels in 2019, sales grew 7.7%, Kumar said. He also noted gross margins were strong and beat Street estimates by 100 basis points. Operating margins came in 75 basis points above forecasts.

“Below the line items seemed consistent, and overall earnings per share beat was mainly driven by revenue strength and gross margins,” he said.

By segment, the strongest growth came from Boston Scientific’s rhythm and neurology unit where sales surged 65% on a strict as-reported basis to $866 million. The cardiovascular unit saw 51.4% growth, bringing in $1.26 billion in sales. Medical-surgical sales were $948 million, up 64.6%.

All three businesses beat BSX stock analysts’ forecasts, Kumar said. He kept his outperform rating and 50 price target on BSX stock.

MedTech Company Raises Outlook

Boston Scientific also raised its full-year earnings outlook to $1.58-$1.62 per share vs. its prior guidance for adjusted profit of $1.53-$1.60 a share. The midpoint of the new outlook was narrowly above BSX stock analysts’ call for $1.59.

The company also expects 21%-22% net sales growth. Analysts projected $11.77 billion in sales.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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