Medical device company Boston Scientific (NYSE: BSX) will be reporting results tomorrow before market open. Here’s what to look for.
Boston Scientific beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $4.56 billion, up 22.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue estimates.
Is Boston Scientific a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Boston Scientific’s revenue to grow 18.5% year on year to $4.57 billion, improving from the 13.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.67 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Boston Scientific has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.
Looking at Boston Scientific’s peers in the healthcare equipment and supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Abbott Laboratories delivered year-on-year revenue growth of 4%, meeting analysts’ expectations, and Neogen reported a revenue decline of 3.4%, falling short of estimates by 1.5%. Abbott Laboratories traded up 3.8% following the results while Neogen was down 20%.
Read our full analysis of Abbott Laboratories’s results here and Neogen’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the healthcare equipment and supplies stocks have shown solid performance, the group has generally underperformed, with share prices down 12.1% on average over the last month. Boston Scientific is down 8.4% during the same time and is heading into earnings with an average analyst price target of $114.94 (compared to the current share price of $94).
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