Key Points
- Boston Scientific is a diversified medical device company that was able to buck the industry slowdown in Q1 2024 and beat both top and bottom-like consensus estimates.
- With a Q12025 EPS of 56 cents, Boston Scientific beat analyst expectations by 5 cents.
- The company raised its Q2 2024 and full-year 2024 guidance.
- 5 stocks we like better than Boston Scientific
Medical device maker Boston Scientific Co.'s NYSE: BSX product portfolio encompasses a wide range of therapeutic areas, from cardiovascular, urology, and neuromodulation to endoscopy instruments and rhythm management. The medical sector company is acquiring rhythm modulation device maker Axonics Inc. NASDAQ: AXNX in the second half of 2024 as the FTC requests additional information on the deal. Boston Scientific's main competitors are medical device makers, including Medtronic plc NYSE: MDT, Stryker Co. NYSE: SYK and Abbott Laboratories NYSE: ABT.
Product Portfolio Revenue Streams
Boston Scientific has two divisions: Cardiovascular and Medical Surgery (MedSurg).
In Q1 2024, 63% of revenues came from the Cardiovascular segment, with $1.872 billion. This is split between interventional cardiology (ICTx) at $652 million, Watchman at $344 million, cardiac rhythm management (CRM) at $575 million and electrophysiology (EP) at $300 million. Peripheral intervention (PI), comprised of stents, balloons and catheter sales, generated $573 million. Cardiovascular revenues rose 15.9% YoY to $2.445 billion in revenues.
Under MedSurg, endoscopy generated $642 million. Urology generated $513 million. Neuromodulation generated $256 million. The MedSurg segment saw a 10.3% rise in YoY revenues to $1.413 million.
Daily Ascending Triangle
BSX formed a daily ascending triangle breakout pattern. The ascending trendline started at $65.52, catching all pullbacks at higher highs against the flat-top horizontal upper trendline at $69.00. The Q1 2024 EPS beat and raised guidance triggered a gap the following morning and the breakout. Shares peaked at $74.39 and established the gap fill at $72.55. The daily relative strength index (RSI) bounced through the 70-band to stall flat at the 75-band. Pullback support levels are at $70.48, $69.00, $66.80 and $64.14.
Solid Q1 2024 Results
Boston Scientific reported Q1 2024 EPS of 56 cents, beating analyst expectations by 5 cents. Revenues rose 13.8% YOY to $3.86 billion, beating $3.68 billion consensus estimates. Shares surged to new 52-week highs on the results and its updated raised guidance.
Upside Guidance
Boston Scientific issued upside guidance for Q2 2024 EPS of 57 cents to 59 cents. Revenues are expected to rise 10.5% to 12.5% or $3.98 billion to $4.05 billion versus $3.93 billion consensus estimates. Full-year 2024 EPS was raised to $2.29 to $2.34 versus $2.26 consensus estimates. Revenues are expected to rise 11% to 13% YoY to $15.8 billion to $16.1 billion versus $15.59 billion consensus estimates.
CEO Insights
BSX
Boston Scientific
$74.45 +0.96 (+1.31%) (As of 05:38 PM ET)
- 52-Week Range
- $48.35
▼
$74.67 - P/E Ratio
- 62.56
- Price Target
- $75.09
Boston Scientific CEO Mike Mahoney pointed out the Q1 2024 results surpassed its internal expectations. This was driven by the nearly 90 new products that were launched globally in 2023. Operations sales rose 15% YOY in the first quarter of 2024, and organic sales rose 13%, exceeding the 9% high-end expectations. Six of its eight business units rang up double-digit gains.
Mahoney shared insights on its different business units. Urology sales rose 10% operationally and organically, with double-digit growth in stone management and prosthetic urology. Endoscopy sales rose 12% operationally and 10% organically, underpinned by differentiated anchored products like AXIOS and single-use imaging products. Neuromodulation sales jumped 10% operationally but declined 1% organically. Its brain franchise grew in the high single-digits.
The company received FDA approval for WaveWriter, a non-surgical back pain indication and next-gen FAST auto-dose. Peripheral intervention saw 16% operation growth and 11% organic growth in the quarter. Cardiology saw fantastic strength, growing 18% operationally and organically.
Mahoney commented, "Our exceptional results this quarter were fueled by our talented global team and the strength of our diversified businesses and pipeline, including the initial U.S. launch of the FARAPULSE™ Pulsed Field Ablation System."
Needham Predicted Correctly
Needham had correctly guessed that Boston Scientific would beat their consensus estimate numbers several days before the earnings release. The impressive thing is that this happened despite the softness of the medical device market, as it only grew 5.3% in Q1 2024 versus 8.3% YOY in Q4 2023. They also correctly predicted that Boston Scientific would be able to bear consensus estimates and guide higher due to the new product launches combined with management's conservative guidance.
Boston Scientific analyst ratings and price targets are at MarketBeat.
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