Boston Scientific Set to Release Q3 2024 Earnings: What Investors Should Know

Boston Scientific (NYSE: BSX) will announce its third-quarter 2024 results on Wednesday, October 23. Analysts anticipate that the company will report revenues and earnings slightly lower than consensus estimates. However, Boston Scientific’s market share is expected to grow, particularly for its Watchman product line. For a deeper insight, check out our interactive dashboard on Boston Scientific’s FY 2024 Q3 Earnings Preview.

Key Trends Influencing Q3 Results

Boston Scientific is likely to benefit from an increase in global procedure volumes. New products launched in the Asia Pacific region should also contribute positively to revenue growth. Recently, the Watchman product line has been a significant driver of growth in the Cardiovascular segment, a trend that is expected to persist. Earlier this year, Boston Scientific obtained regulatory approval in China for the Farapulse Pulsed Field Ablation (PFA) System, which may also accelerate sales growth in that market. On the downside, rising costs could affect the operating margin, leading us to project adjusted earnings per share at $0.58, slightly below the consensus estimate of $0.59. The company has previously guided for EPS between $0.57 and $0.59.

Performance Insights from Q2

In the second quarter, Boston Scientific achieved revenues of $4.1 billion, marking a 14.5% increase year-over-year, with growth across all segments. Notably, the Cardiovascular segment grew by 9%, while MedSurg sales increased by 18%. The adjusted EPS was reported at $0.62, a 17% increase from $0.53 in the same quarter the previous year. Subsequently, the company raised its full-year sales growth outlook to between 13.5% and 14.5%, from the earlier forecast of 11% to 13%. Additionally, the full-year adjusted EPS outlook was upgraded to a range of $2.38 to $2.42, compared to the prior estimate of $2.29 to $2.34.

Implications for BSX Stock Value

Our evaluation suggests that Boston Scientific’s Valuation stands at $83 per share, slightly below its current market price of $88. At this price point, BSX stock trades at 37 times its adjusted earnings forecast of $2.39 per share for 2024. This P/E ratio exceeds the stock’s average P/E ratio of 28 over the past five years, indicating that BSX stock may be fairly valued. Nevertheless, any positive surprises in Q3, along with an improved outlook, could enhance investor confidence and drive the stock price higher.

This year, BSX has outperformed the broader market, with gains of 53% compared to a 23% increase in the S&P 500 index. It is also one of the few stocks to have consistently risen in value for the past three years. However, it has not always managed to outperform the market. On the other hand, the Trefis High Quality (HQ) Portfolio, which consists of 30 stocks, has displayed less volatility and outperformed the S&P 500 every year during the same timeframe. This performance illustrates how HQ Portfolio stocks have yielded better returns with reduced risk, indicating a steadier approach to investing.

While BSX stock appears to be near its fair value, it’s beneficial to examine how Boston Scientific’s Peers perform on important metrics. You can find additional valuable comparisons for various companies across industries at Peer Comparisons.

[1] Returns as of 10/22/2024
[2] Cumulative total returns since the end of 2016

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.