Boston Scientific (NYSE:BSX) Trading Up 4.6% After Strong Earnings

Key Points

• Boston Scientific shares increased by 4.6% following the announcement of quarterly earnings, reporting earnings per share of $0.75, surpassing estimates of $0.71.
• The company projected FY 2025 guidance at 3.020-3.040 EPS, indicating confidence in future performance.
• Wall Street analysts have mixed views, with the average target price set at $121.61, while some firms raised their price targets, indicating overall positive sentiment.

Boston Scientific Corporation (NYSE:BSX - Get Free Report) shares traded up 4.6% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $105.00 and last traded at $104.52. 7,759,114 shares changed hands during mid-day trading, a decline of 3% from the average session volume of 7,962,085 shares. The stock had previously closed at $99.90.

The medical equipment provider reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.04. The company had revenue of $5.07 billion during the quarter, compared to the consensus estimate of $4.97 billion. Boston Scientific had a return on equity of 19.21% and a net margin of 13.55%.The firm's quarterly revenue was up 20.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.63 EPS. Boston Scientific has set its FY 2025 guidance at 3.020-3.040 EPS. Q4 2025 guidance at 0.770-0.790 EPS.

Wall Street Analyst Weigh In

BSX has been the subject of several analyst reports. Wells Fargo & Company raised their target price on Boston Scientific from $118.00 to $124.00 and gave the stock an "overweight" rating in a research note on Thursday, July 24th. Evercore ISI cut their target price on Boston Scientific from $115.00 to $110.00 and set an "outperform" rating for the company in a research note on Tuesday, October 7th. UBS Group raised their target price on Boston Scientific from $130.00 to $135.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Canaccord Genuity Group raised their target price on Boston Scientific from $131.00 to $132.00 and gave the stock a "buy" rating in a research note on Wednesday, October 1st. Finally, Erste Group Bank downgraded Boston Scientific from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $121.61.

Insider Buying and Selling

In other news, EVP Arthur C. Butcher sold 17,313 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $104.63, for a total transaction of $1,811,459.19. Following the transaction, the executive vice president directly owned 23,600 shares of the company's stock, valued at approximately $2,469,268. The trade was a 42.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Edward J. Ludwig sold 4,000 shares of the business's stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $106.03, for a total value of $424,120.00. Following the transaction, the director directly owned 18,479 shares in the company, valued at $1,959,328.37. This trade represents a 17.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 174,214 shares of company stock valued at $17,972,457 over the last quarter. Company insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of BSX. FWL Investment Management LLC bought a new position in Boston Scientific in the second quarter valued at about $26,000. Sound Income Strategies LLC raised its stake in shares of Boston Scientific by 90.9% in the second quarter. Sound Income Strategies LLC now owns 252 shares of the medical equipment provider's stock worth $27,000 after buying an additional 120 shares during the period. Steph & Co. bought a new position in shares of Boston Scientific in the third quarter worth about $25,000. 1248 Management LLC bought a new position in shares of Boston Scientific in the first quarter worth about $26,000. Finally, Financial Consulate Inc. bought a new position in shares of Boston Scientific in the third quarter worth about $25,000. 89.07% of the stock is owned by institutional investors.

Boston Scientific Price Performance

The company has a quick ratio of 0.82, a current ratio of 1.37 and a debt-to-equity ratio of 0.49. The firm has a 50 day moving average price of $101.19 and a 200 day moving average price of $101.83. The stock has a market cap of $154.84 billion, a P/E ratio of 62.24, a P/E/G ratio of 2.42 and a beta of 0.61.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system.

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