Boston Scientific Corporation

Boston Scientific Corporation (NYSE: BSX) is a worldwide leader in the development, manufacturing, and marketing of medical devices used across various interventional medical fields. Its MedSurg division encompasses Endoscopy, Urology, and Neuromodulation.

Recent Business and Financial Updates

• Third Quarter Financial Results of Boston Scientific: In the third quarter, Boston Scientific reported net sales of USD 4.209 billion, reflecting a 19.4% increase on a reported basis compared to the same period last year. The company surpassed its guidance range of 13 to 15 percent growth, achieving 19.5% growth on an operational basis and 18.2% on an organic basis. These figures indicate a strong performance across the company’s various business segments.
• Earnings Performance: Boston Scientific’s GAAP net income attributable to common stockholders was USD 0.32 per share, falling short of the company’s expected range of USD 0.36 to USD 0.38 per share. However, the company reported an adjusted EPS of USD 0.63 per share, exceeding its guidance of USD 0.57 to USD 0.59 per share, indicating resilience in earnings despite some challenges.
• Segment-wise Net Sales Growth: The company saw robust growth across its business segments in Q3. The MedSurg segment achieved a reported net sales growth of 10.3%, with an operational growth of 10.4% and organic growth of 7.7%. Meanwhile, the Cardiovascular segment delivered an impressive 25.0% reported growth, 25.1% operational growth, and 24.6% organic growth, driven primarily by strong demand for cardiology and peripheral interventions products.
• Regional Performance: Boston Scientific experienced strong regional growth, with the United States seeing a 23.5% increase in reported net sales. In the Europe, Middle East, and Africa (EMEA) region, net sales grew by 15.2%, and in the Asia-Pacific (APAC) region, net sales increased by 12.1%. Latin America and Canada (LACA) saw a growth of 9.0%, while Emerging Markets reported a solid 15.2% growth, demonstrating strong demand across diverse geographies.
• Regulatory Approvals and New Product Launches: Boston Scientific received several key regulatory approvals during the quarter. The U.S. Food and Drug Administration (FDA) approved the FARAWAVE™ NAV Ablation Catheter and FARAVIEW™ Software for treating paroxysmal atrial fibrillation. Additionally, the company received approval from Japan’s Pharmaceuticals and Medical Device Agency (PMDA) for the FARAPULSE Pulsed Field Ablation (PFA) System.
• Product Expansions and Innovations: The company made significant strides in expanding its product portfolio. Boston Scientific received FDA clearance to expand the indications for the INGEVITY™+ Pacing Leads, and the ACURATE Prime™ Aortic Valve System received CE mark approval and launched in Europe. Furthermore, the LUX-Dx II/II+™ Insertable Cardiac Monitor System received CE mark approval, adding to the company’s innovative cardiac offerings.
• Acquisition and Board Changes: In Q3, Boston Scientific completed the acquisition of Silk Road Medical, Inc., a company specializing in products that prevent strokes in patients with carotid artery disease. Additionally, the company appointed David Habiger, president and CEO of J.D. Power, to its board of directors, reflecting Boston Scientific’s ongoing focus on strengthening its leadership and expanding its capabilities.
• Sales Performance by Business and Region: Sales growth across Boston Scientific's key business units was significant. Endoscopy reported a 7.8% increase in sales, while Urology grew by 10.3%. Neuromodulation grew by 17.0%, and MedSurg saw a 10.3% rise. Cardiovascular products, including Cardiology and Peripheral Interventions, led the growth with 25.0% and 11.8% reported increases, respectively. These segments were instrumental in driving the company’s strong financial results in Q3.
• Guidance for Full Year and Fourth Quarter 2024: Boston Scientific has raised its full-year 2024 net sales growth forecast to approximately 16.5% on a reported basis, with 15% organic growth. The company also expects GAAP EPS to range between USD 1.28 and USD 1.30, with adjusted EPS between USD 2.45 and USD 2.47. For Q4 2024, the company anticipates reported net sales growth to be in the range of 16.5% to 18.5%, with organic growth projected between 14% and 16%. GAAP EPS for Q4 is expected to be between USD 0.41 and USD 0.43, with adjusted EPS ranging from USD 0.64 to USD 0.66.
• Strategic Acquisitions: Boston Scientific Corporation has finalized its acquisition of Axonics, Inc. (Nasdaq: AXNX), a company specializing in developing and commercializing innovative devices for treating urinary and bowel dysfunction. In addition, BSX has announced a definitive agreement to acquire Intera Oncology Inc., a privately held medical device company. The acquisition includes the Intera 3000 Hepatic Artery Infusion Pump and the chemotherapy drug floxuridine, both FDA-approved for treating liver tumors caused by metastatic colorectal cancer.

Technical Observation (on the daily chart):

BSX's stock price is trending upward, exhibiting a pattern of higher highs and higher lows. However, with decreasing trading volumes, there is a likelihood that the stock may enter a consolidation phase before experiencing any further upward movement. The 14-day Relative Strength Index (RSI) is trending down from overbought conditions and is moving towards the midpoint. Additionally, the stock is currently positioned above its 50-day simple moving average, which may serve as a support level in the near term. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Boston Scientific Corporation (NYSE: BSX) at the closing market price of USD 90.47 as of December 03,2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 03, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.