Boston Scientific Corporation BSX posted fourth-quarter 2024 adjusted earnings per share (EPS) of 70 cents, up 27.3% from the year-ago figure. The figure beat the Zacks Consensus Estimate by 7.7% and also exceeded the company’s adjusted earnings per share guidance range of 64-66 cents per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The quarter’s adjustments included certain amortization expenses, acquisition/divestitures-related net charges, and restructuring and restructuring-related charges, among others. Reported EPS for the fourth quarter was 38 cents, reflecting an 11.8% increase from the year-ago quarter figure.

Full-year adjusted EPS of $2.51 rose 22.4% from the year-ago figure. It also exceeded the Zacks Consensus Estimate by 2%. It also surpassed the full-year adjusted EPS guidance of $2.45 to $2.47.

Revenues in the fourth quarter totaled $4.56 billion, up 22.4% year over year on a reported basis and 23.1% on an operational basis (at a constant exchange rate or CER). Organic growth, adjusted for foreign currency fluctuations and certain recent acquisitions and divestments, was 19.5%.

The top line surpassed the Zacks Consensus Estimate by 3.4% and exceeded the company’s forecast of 16.5% reported growth and 15% on an organic basis.

Full-year total revenues were $16.75 billion, up 17.6% on a reported basis from 2023 (an 18.5% improvement on an operational basis and up 16.4% on an organic basis). The top line also exceeded the Zacks Consensus Estimate by 0.9%.

It also surpassed the company’s full-year net sales growth expectation of approximately 16.5% on a reported basis and 15% organically.

Following the earnings announcement, shares of BSX dipped 0.7% in pre-market trading today.

BSX’s Q4 Revenue Breakdown by Regions

In the fourth quarter, revenues rose 30.7% in the United States on a reported basis (same operationally).

Reported revenues rose 10.8% in the Europe, Middle East and Africa (EMEA) region (up 11.6% operationally) and 11.1% in the Asia Pacific zone (up 12.4% operationally).

Boston Scientific Corporation Price, Consensus and EPS Surprise

Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote

Reported revenues increased 4.6% in Latin America and Canada (up 12.6% operationally). Reported revenue growth in emerging markets was 12.4% (up 15.2% operationally).

Segmental Analysis of BSX’s Q4 Revenues

Boston Scientific recently reorganized its operational structure and aggregated its core businesses into two reportable segments — MedSurg and Cardiovascular. Both of these generate revenues from the sale of Medical Devices.

MedSurg

Within this, the Endoscopy unit generated revenues of $690 million, up 7% organically.

Urology revenues were $630 million, reflecting organic growth of 7.9%.

The Neuromodulation business reported $299 million in revenues, highlighting a 5.5% rise organically year over year.

Cardiovascular

The company generates maximum revenues from this segment. Within this, Cardiology business sales totaled $2.30 billion (up 31.9% year over year organically) in the fourth quarter.

The Peripheral Interventions unit generated $645 million in sales, up 12.5%.

BSX’s Margin Performance

The gross margin in the fourth quarter contracted 138 basis points (bps) year over year to 67.9%. There was a 27.9% rise in the cost of products sold to $1.47 billion in the reported quarter.

Selling, general and administrative expenses rose 16.9% to $1.62 billion. Research and development expenses rose 26.7% to $460 million. Royalty expenses of $10 million, however, declined 16.7% year over year. The adjusted operating margin expanded 6 bps to 22.2% in the reported quarter.

BSX Initiates Outlook for 2025 and Q1

For 2025, Boston Scientific anticipates net sales to grow approximately 12.5-14.5% on a reported basis and nearly 10-12% on an organic basis. The Zacks Consensus Estimate is currently pegged at $18.77 billion, indicating a 13.1% rise from the 2023 reported figure.

Full-year adjusted EPS is expected in the range of $2.80-$2.87. The Zacks Consensus Estimate is currently pegged at $2.77.

For the first quarter of 2025, revenue growth is projected in the range of approximately 17-19% on a reported basis (up 14-16% organically). Adjusted earnings are expected in the range of 66-68 cents per share.

The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 64 cents per share and $4.42 billion, respectively.

Our View on BSX

Boston Scientific delivered better-than-expected adjusted earnings and revenues in the fourth quarter of 2024. The company delivered one of its most successful years, driven by its innovative portfolio, the launch of the FARAPULSE Pulsed Field Ablation System, significant clinical achievements, and commercial excellence across multiple businesses and regions.

During the quarter, Boston Scientific also closed the acquisitions of Cortex and Axonics and announced an agreement to acquire Intera Oncology, Inc.

However, the contraction of the gross margin in the quarter is discouraging.

BSX’s Zacks Rank and Key Picks

Boston Scientific currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-Rad Laboratories BIO.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

Bio-Rad Laboratories, carrying a Zacks Rank #2, posted third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.

BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.

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