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Yahoo
4 days ago
- Business
- Yahoo
Boston Scientific's Q1 Earnings Call: Our Top 5 Analyst Questions
Boston Scientific's first quarter results were met with a positive market reaction following revenue and profit that surpassed Wall Street expectations. Management credited robust growth in its cardiology portfolio and the successful execution of a category leadership strategy spanning electrophysiology, WATCHMAN, and interventional cardiology products. CEO Michael Mahoney highlighted that double-digit expansion in the U.S. and momentum in Europe and Japan helped drive operational sales growth, while new product launches and increased adoption in emerging segments, such as FARAPULSE and Axios, also contributed to performance. Is now the time to buy BSX? Find out in our full research report (it's free). Revenue: $4.66 billion vs analyst estimates of $4.57 billion (20.9% year-on-year growth, 2% beat) Adjusted EPS: $0.75 vs analyst estimates of $0.67 (11.5% beat) Revenue Guidance for Q2 CY2025 is $4.88 billion at the midpoint, above analyst estimates of $4.79 billion Management raised its full-year Adjusted EPS guidance to $2.91 at the midpoint, a 2.5% increase Operating Margin: 19.8%, up from 17.5% in the same quarter last year Organic Revenue rose 18.2% year on year (13.1% in the same quarter last year) Market Capitalization: $150.5 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Robert Marcus (JPMorgan) asked about mitigating tariff headwinds. CFO Daniel Brennan explained the offset through increased revenue and targeted cost reductions, with no plans for major manufacturing shifts. Larry Biegelsen (Wells Fargo) questioned global electrophysiology market share. CEO Michael Mahoney acknowledged strong momentum and the goal of reaching #1, particularly through investments in China and Japan. Joanne Wuensch (Citi) inquired about WATCHMAN's growth and procedural trends. Mahoney and Dr. Ken Stein cited rapid adoption of concomitant procedures and favorable clinical data as key drivers. Travis Steed (Bank of America) asked about margin sustainability. Brennan attributed margin expansion to product mix and noted that tariffs will pressure gross margin in the second half, but full-year expansion is still expected. Danielle Antalffy (UBS) raised questions on the SoniVie acquisition's timing and potential. Mahoney described the clinical trial process and anticipated a multi-year path to realizing commercial contributions. In upcoming quarters, the StockStory team will monitor (1) continued growth and market share gains in electrophysiology and WATCHMAN, (2) progress on integrating new acquisitions and the resulting product launches, and (3) the company's ability to offset tariff-related cost pressures without sacrificing margin targets. Updates on key clinical trials and regulatory milestones will also be critical to tracking Boston Scientific's strategy execution. Boston Scientific currently trades at $101.38, up from $94.97 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
10-06-2025
- Business
- Yahoo
Cardiovascular Tailwind Boosts BSX: Here's How to Play the Stock
Boston Scientific BSX, a prominent global player in cardiovascular technology, is well-positioned to capitalize on the robust expansion of the cardiovascular devices market. According to a MarketsandMarkets report, this market was valued at $72.83 billion in 2023 and is expected to witness a strong CAGR of 7.3% between 2024 and 2029. With its portfolio of Cardiology and Peripheral Interventions products, Boston Scientific is set to benefit significantly from this upward trend. The booming cardiovascular devices market, driven by aging demographics, minimally invasive procedures, and tech innovation, is propelling Boston Scientific's top-line growth, product leadership and stronger profitability. These tailwinds were clearly reflected in the company's robust first-quarter 2025 performance and raised full-year 2025 guidance. In the past year, Boston Scientific's shares have skyrocketed roughly 31.8%, outpacing the broader Medical Product industry and the S&P 500 benchmark, which have improved about 8.9% and 11.9%, respectively. During this time, Boston Scientific has also outpaced key peers such as Abbott Laboratories ABT and Medtronic MDT. While Abbott, known for its structural heart, cardiac rhythm management, and diagnostics products, gained 24.2%, Medtronic, known for heart valves and coronary stents, advanced 5.1%. Image Source: Zacks Investment Research Strong Q1: In the first quarter of 2025, Boston Scientific's revenues were up 22.2% on an operational basis (at a constant exchange rate or CER). The Cardiovascular segment sales were up 26.2% year over year. Within this, Cardiology and Peripheral Interventions businesses' sales grew 31.2% and 7.4%, respectively, year over year. U.S. revenues rose 31%, driven by double-digit growth in most business units. Japan and China also delivered strong results, particularly in EP. Boston Scientific reported adjusted earnings per share (EPS) of $0.75, up 34% year over year. The company's revenues and EPS rose due to exceptional top-line growth across key franchises, especially in EP and structural heart, combined with improved margin performance and disciplined cost management. Cardiovascular Steals Spotlight: Boston Scientific's Electrophysiology business is rapidly expanding its global market share, with first-quarter 2025 organic growth surging 145%, positioning BSX as the number two player in the space. This growth is largely driven by strong commercial adoption of FARAPULSE, the company's flagship Pulsed Field Ablation ('PFA') system, which is gaining traction through global demand, new account expansions, and ongoing clinical studies like AVANT GUARD and Elevate PF. Meanwhile, Boston Scientific's structural heart portfolio is also performing well, with WATCHMAN sales up 24% year over year, aided by DRG-enabled procedural growth. Next-gen versions — WATCHMAN FLX and FLX Pro — are accelerating adoption, while trials like CHAMPION-AF and OPTION A aim to expand the device's global market potential. For full-year 2025, Boston Scientific raised its organic revenue growth guidance to 12- 14% (from 10-12%) and now expects adjusted EPS of $2.87-$2.94, representing 14-17% year-over-year growth. Reported revenue growth is projected at 15-17%, including contributions from recent acquisitions like Axonics and Intera Oncology. Adjusted operating margin is expected to expand 50-75 basis points, driven by strong product mix, notably FARAPULSE and WATCHMAN, and cost efficiencies. Segmentally, Cardiology continues to lead growth, with Endoscopy and Neuromodulation expected to outperform markets and Urology affected modestly by supply constraints. The Zacks Consensus Estimate for Boston Scientific's 2025 sales and EPS implies a year-over-year improvement of 16.4% and 15.9%, respectively. The bottom-line estimates have moved northward in the past 60 days. Image Source: Zacks Investment Research Boston Scientific continues to face a challenging business environment, thanks to industry-wide macroeconomic pressures, including geopolitical tensions, global supply-chain disruptions, and labor market instability. International conflicts and retaliatory trade actions have increased global risks, while volatile financial markets and fluctuating prices for goods and services are squeezing profitability. Sustained macroeconomic pressures may make it more difficult for the company to manage operating expenses effectively. Tariffs are expected to have a $200 million impact in 2025, which, although planned to be offset through sales growth, cost controls and FX benefits, underscores the heightened complexity of the current environment. With a forward five-year price-to-earnings (P/E) of 33.31X, Boston Scientific's shares are trading at a premium compared with the industry average of 21.29X. It has a Value Score of D at present. Image Source: Zacks Investment Research Meanwhile, MDT's five-year price-to-earnings (P/E) of 15.63X is lower than the industry average. Considering Boston Scientific's strong operational performance, leadership in fast-growing cardiovascular segments like Electrophysiology and Structural Heart, and promising pipeline of developments, the company is clearly executing well on both growth and profitability fronts. With projected double-digit revenue and earnings growth, BSX is poised to continue delivering shareholder value, even amid a complex macroeconomic backdrop and tariff headwinds. The stock has excelled both the industry and its peers, and its estimates are likely to continue to trend upward in the near term. Henceforth, the current BSX shareholders may find it prudent to stay invested. Boston Scientific carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
BSX Q1 Earnings Call: Outperformance Driven by Cardiology and Electrophysiology, Guidance Raised Amid Tariff Headwinds
Medical device company Boston Scientific (NYSE:BSX) announced better-than-expected revenue in Q1 CY2025, with sales up 20.9% year on year to $4.66 billion. The company expects next quarter's revenue to be around $4.88 billion, close to analysts' estimates. Its non-GAAP profit of $0.75 per share was 11.5% above analysts' consensus estimates. Is now the time to buy BSX? Find out in our full research report (it's free). Revenue: $4.66 billion vs analyst estimates of $4.57 billion (20.9% year-on-year growth, 2% beat) Adjusted EPS: $0.75 vs analyst estimates of $0.67 (11.5% beat) Adjusted EBITDA: $1.45 billion vs analyst estimates of $1.31 billion (31.2% margin, 11.3% beat) Revenue Guidance for Q2 CY2025 is $4.88 billion at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $2.91 at the midpoint, a 2.5% increase Operating Margin: 19.8%, up from 17.5% in the same quarter last year Free Cash Flow was $511.4 million, up from -$15 million in the same quarter last year Organic Revenue rose 18.2% year on year (13.1% in the same quarter last year) Market Capitalization: $146.3 billion Boston Scientific's first quarter results were shaped by broad-based momentum in its cardiology and electrophysiology businesses. Management highlighted that double-digit growth in five of eight business units and strong adoption of key platforms like FARAPULSE and WATCHMAN contributed to the company's outperformance. CEO Mike Mahoney emphasized, 'Our strong growth continues to reflect the durability of our category leadership strategy, which is powered through meaningful innovation and clinical evidence generation.' Looking forward, management's raised full-year guidance incorporates both continued portfolio strength and the anticipated impact of new tariffs. CFO Daniel Brennan noted that while tariffs present a $200 million headwind, the company expects to offset these through increased sales and discretionary spending reductions. Mahoney added, 'We remain excited about our near and long-term growth catalysts, which we believe will enable us to deliver consistent differentiated performance this year and well beyond.' Management attributed the quarter's outperformance to execution across core businesses, successful integration of recent acquisitions, and ongoing investment in clinical and manufacturing capabilities. Cardiology and Electrophysiology Surge: Cardiology sales grew substantially, with management pointing to strong demand for FARAPULSE (a pulsed field ablation system used in cardiac arrhythmia treatment) and the WATCHMAN left atrial appendage closure device. These platforms benefited from increased adoption, new account openings, and supporting clinical data. Geographic Expansion: The U.S. market experienced over 30% operational growth, while Japan and China also contributed meaningfully. Management noted that China, despite pricing pressures from volume-based procurement (VBP), is expected to maintain double-digit growth due to local partnerships and product launches. Integration of Acquisitions: The company completed the acquisitions of Bolt Medical and made progress integrating Axonics and other recently acquired businesses. These moves expand Boston Scientific's footprint in interventional cardiology, peripheral interventions, and urology. Pipeline Progress and Regulatory Milestones: Management highlighted ongoing clinical trials and anticipated regulatory approvals for next-generation products—including the Empower leadless pacemaker, expanded indications for WATCHMAN, and new mapping solutions for electrophysiology. Tariff and Supply Chain Management: The team acknowledged that new tariffs will impact costs in the second half of the year but stated they will not shift manufacturing locations, instead focusing on managing discretionary spending to protect margins. Management's outlook for the next quarter and the full year is underpinned by continued demand in core therapeutic categories, the expected contributions from recent product launches, and disciplined cost management in the face of new tariffs. Core Portfolio Momentum: Management expects sustained demand for FARAPULSE, WATCHMAN, and emerging electrophysiology products to drive above-market growth in key geographies. Mitigating Tariff Headwinds: The company plans to counteract a $200 million tariff impact primarily through higher sales, selective cost controls, and minor foreign exchange benefits, rather than changes to the manufacturing footprint. Ongoing Pipeline and Integration: New clinical data readouts, regulatory milestones, and the integration of new acquisitions such as SoniVie and Entera Oncology are expected to contribute to both revenue growth and portfolio diversification. Robert Marcus (JPMorgan): Asked about the ability to offset $200 million in tariffs and whether manufacturing would shift. Management replied that increased sales and spending reductions would cover the headwind, with no plans to change manufacturing locations. Larry Biegelsen (Wells Fargo): Questioned Boston Scientific's goal to become the #1 player in electrophysiology. CEO Mike Mahoney said this is the company's aim, driven by clinical leadership and geographic expansion, especially in China and Japan. Joanne Wuensch (Citi): Requested details on WATCHMAN's growth and uptake of combined procedures. Management cited faster-than-expected adoption and highlighted benefits for patients, physicians, and hospitals. Frederick Wise (Stifel): Asked about the broader impact of trade tensions and supply chain risks in China. Mahoney stated that double-digit growth is expected in China despite VBP pressures, supported by local manufacturing and partnerships. David Roman (Goldman Sachs): Inquired about drivers for moving MedSurg growth from mid-single to high-single digits. Management pointed to integration of acquisitions, improvements in neuromodulation, and some ongoing supply chain challenges in urology. In the coming quarters, the StockStory team will focus on (1) the uptake and broader clinical adoption of FARAPULSE and next-generation electrophysiology platforms, (2) progress on regulatory approvals and expanded indications for products like WATCHMAN and Empower, and (3) evidence of successful integration and revenue contributions from recent acquisitions such as SoniVie and Bolt Medical. We will also monitor the company's ability to offset tariff headwinds while sustaining margin expansion. Is BSX a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
