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Marlborough, Massachusetts-based Boston Scientific Corporation (BSX) is a developer, manufacturer, and marketer of medical devices for use in various interventional medical specialties worldwide. With a market cap of $123.8 billion, the company operates through MedSurg and Cardiovascular segments. It is expected to release its Q3 earnings before the market opens on Wednesday, Oct. 23.
Ahead of the event, analysts expect Boston Scientific to report a profit of $0.58 per share, up 16% from $0.50 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 17% year over year to $0.62, exceeding the consensus estimates by 6.9%.
For fiscal 2024, analysts expect BSX to report an adjusted EPS of $2.40, up 17.1% from $2.05 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 12.9% year-over-year to $2.71.
BSX has gained 48.5% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 20.6% gains and the Health Care Select Sector SPDR Fund’s (XLV) 11.3% returns during the same time frame.
Despite outperforming Wall Street’s topline and earnings expectations, shares of Boston Scientific dipped 1.1% after the release of its Q2 earnings on Jul. 24. The reported 14.5% year-over-year sales growth, totaling $4.1 billion. Moreover, its net margin expanded by 61 basis points, resulting in 24.1% net income growth, amounting to $324 million.
The drop in share price can be attributed to investors' even higher expectations, as the company exceeded the EPS estimates by an even greater margin in the preceding two quarters.
The consensus opinion on BSX stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 28 analysts covering the stock, 23 recommend “Strong Buy,” three advise “Moderate Buy,” and two suggest a “Hold” rating.
The mean price target of $88.72 suggests a potential upside of 3.4% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
