Core Viewpoint - Boston Scientific (BSX) has been a highly searched stock recently, indicating potential investor interest and market activity [1] Earnings Estimate Revisions - For the current quarter, Boston Scientific is expected to report earnings of $0.72 per share, reflecting a year-over-year increase of +16.1% [5] - The Zacks Consensus Estimate for the current fiscal year is $2.91, indicating a year-over-year change of +15.9%, with a +2.2% revision over the last 30 days [5] - The consensus earnings estimate for the next fiscal year is $3.26, showing a change of +11.8% from the previous year, with a +0.9% revision over the past month [6] - Boston Scientific holds a Zacks Rank 2 (Buy), suggesting a favorable outlook based on recent earnings estimate changes [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $4.89 billion, indicating a year-over-year increase of +18.6% [11] - For the current fiscal year, the sales estimate is $19.49 billion, reflecting a change of +16.4%, while the next fiscal year's estimate is $21.55 billion, indicating a +10.6% change [11] Last Reported Results and Surprise History - In the last reported quarter, Boston Scientific achieved revenues of $4.66 billion, a year-over-year increase of +20.9%, and an EPS of $0.75 compared to $0.56 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +2.31% and for EPS by +11.94% [12] - Boston Scientific has consistently beaten consensus EPS and revenue estimates over the past four quarters [13] Valuation - Boston Scientific is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - Valuation metrics such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [15][16] Bottom Line - The information presented suggests that Boston Scientific may outperform the broader market in the near term, supported by its Zacks Rank 2 [18]

Core Insights - The Q1 2025 earnings cycle is underway, with guidance being a crucial factor due to economic uncertainties from recent tariff announcements [1] - Several companies, including Boston Scientific, Meta Platforms, and Microsoft, have reported positive earnings results, leading to bullish share reactions [2][10] Boston Scientific (BSX) - Boston Scientific exceeded both revenue and earnings expectations, achieving a 12% EPS beat and sales 2.3% above forecasts [3] - The company upgraded its current-year guidance, projecting 16% EPS growth and 17% higher sales, supported by strong segment performance [4][8] - The stock currently holds a Zacks Rank 2 (Buy) and a Style Score of 'B' for Value [3][4] Meta Platforms (META) - Meta Platforms reported strong growth, with sales increasing 16% year-over-year, driven by robust advertising revenue totaling $41.3 billion [9][16] - The company's average price per ad rose 10% year-over-year, and daily active users increased by 6% [16] Microsoft (MSFT) - Microsoft reported EPS of $3.46 and sales of $70.0 billion, both exceeding consensus expectations, with sales growing 13% year-over-year and EPS climbing 18% [12] - The strong results were driven by Microsoft Cloud and AI, with cloud revenue increasing 20% year-over-year to $42.4 billion, and Intelligent Cloud revenue reaching $26.8 billion, up 21% [13] - The demand for Microsoft's services is expected to remain strong for the foreseeable future [13]

Core Insights - Boston Scientific Corporation will participate in two investor conferences in May 2025 [1] Group 1: Upcoming Events - On May 13, 2025, Dan Brennan and Joe Fitzgerald will engage in a 30-minute Q&A session at Bank of America's 2025 Health Care Conference starting at 8:00 a.m. PT / 11:00 a.m. ET [2] - On May 28, 2025, Mike Mahoney and Ken Stein will participate in a 50-minute Q&A session at Bernstein's 41st Annual Strategic Decisions Conference starting at 8:00 a.m. ET [3] Group 2: Webcast Information - A live webcast and replay for each event will be available at Boston Scientific's investor relations website, with the replay accessible approximately one hour after the event concludes [4] Group 3: Company Overview - Boston Scientific is a global leader in medical technology, transforming lives through innovative solutions that improve patient health and reduce healthcare costs [5]

Financial Performance - Boston Scientific's net sales for Q1 2025 were $4.663 billion, a 20.9% increase from $3.856 billion in Q1 2024, driven by strong commercial execution and operational net sales growth of 22.2%[132] - The reported net income for Q1 2025 was $674 million, or $0.45 per diluted share, compared to $495 million, or $0.33 per diluted share in Q1 2024[132] - Adjusted net income for Q1 2025 was $1.121 billion, or $0.75 per diluted share, compared to $832 million, or $0.56 per diluted share in Q1 2024[134] - Gross profit for Q1 2025 was $3.210 billion, up from $2.648 billion in Q1 2024, with a gross profit margin of 68.8% compared to 68.7% in the prior year[151] Segment Performance - The Cardiology segment generated $2.429 billion in net sales for Q1 2025, representing 52% of total sales, with a 29.8% increase year-over-year[143] - Urology net sales increased by $120 million, or 23.5%, to $633 million in Q1 2025, supported by a significant contribution from the acquisition of Axonics[139] - The Endoscopy segment reported net sales of $673 million, a 4.7% increase, with operational growth of 5.9% despite foreign currency impacts[137] - Neuromodulation sales reached $271 million, up 5.8%, primarily driven by spinal cord stimulation systems[141] - Peripheral Interventions net sales increased by $83 million, or 14.4%, to $656 million, with operational growth of 15.8%[145] - Emerging Markets accounted for 15% of consolidated net sales in Q1 2025, with a reported growth of 6.5% driven by strong performance in China[148] Expenses and Cash Flow - SG&A expenses increased by $233 million, or 17%, in Q1 2025, totaling $1.597 billion, which is 34.2% of net sales, down from 35.4% in Q1 2024[153] - R&D expenses rose by $77 million, or 21%, in Q1 2025, amounting to $443 million, maintaining 9.5% of net sales[154] - Cash provided by operating activities was $541 million in Q1 2025, an increase of $378 million compared to $164 million in Q1 2024[175] - Cash used for investing activities was $(500) million in Q1 2025, including $239 million for the acquisition of Cortex, Inc.[174] Debt and Financing - Interest expense increased to $82 million in Q1 2025 from $69 million in Q1 2024, primarily due to increased debt from a €1.500 billion public offering[162] - The company had $725 million in unrestricted cash and cash equivalents as of March 31, 2025[171] - The company raised €1.500 billion from the issuance of euro-denominated senior notes, resulting in cash proceeds of $1.558 billion after discounts and costs[177] - As of March 31, 2025, the company maintained a leverage ratio of 2.21 times, well below the maximum permitted ratio of 4.75 times following a Qualified Acquisition[179] Acquisitions and Investments - The company announced an agreement to acquire SoniVie Ltd. for approximately $360 million upfront, with an additional $180 million contingent on regulatory milestones[181] - The company plans to use the net proceeds from the 2025 Eurobonds for general corporate purposes, including potential future acquisitions[177] Compliance and Risks - The company anticipates ongoing economic challenges due to inflation, tariffs, and geopolitical factors impacting operations[149] - The company faces risks from economic conditions, supply chain disruptions, and competitive pressures that could impact future performance[198] - The company is subject to geopolitical and economic conditions that may disrupt operations or impact sanctions on U.S. manufacturers doing business in affected regions[204] - The company faces risks associated with regulatory compliance and quality systems in the U.S., EU, and globally, which could affect operational performance[200] Market and Operational Factors - The company’s dependency on international net sales is essential for achieving growth and maintaining market positions in various regions, including investments in China and other emerging markets[204] - The impact of increased pressure on the availability and rate of third-party reimbursement for products is a significant concern for the company[200] - The potential failure to successfully integrate strategic acquisitions could hinder the realization of expected benefits, including cost synergies[204] - The company is exposed to market risk from changes in currency exchange rates and interest rates, which is managed through a risk management program including derivative financial instruments[207] - The company had currency derivative instruments outstanding with a contract amount of $9.546 billion as of March 31, 2025, compared to $7.636 billion as of December 31, 2024[208] - A ten percent appreciation in the U.S. dollar's value relative to the hedged currencies would increase the derivative instruments' fair value by $554 million as of March 31, 2025[208] - As of March 31, 2025, $11.243 billion in aggregate principal amount of the company's outstanding debt obligations was at fixed interest rates, representing approximately 100 percent of total debt[209] Corporate Governance - The company utilizes non-GAAP financial measures, including adjusted net income and operational net sales, to provide transparency in performance evaluation[187] - The company is in compliance with the financial covenant required by the 2021 Revolving Credit Facility as of March 31, 2025[178] - The company has $274 million remaining in restructuring charge exclusions and $1.429 billion in litigation exclusions as of March 31, 2025[180] - The company has not repurchased any shares during Q1 2025 or 2024, with $1.000 billion remaining under its stock repurchase program[184] - The company’s ability to attract and retain talent, including key personnel associated with acquisitions, is critical for maintaining corporate culture in a hybrid work environment[200]

Core Insights - The Q1 2025 earnings cycle is heavily focused on guidance, influenced by recent economic uncertainties and tariff announcements [1][9] - Several companies, including Centene, Boston Scientific, and Celestica, have raised their guidance, indicating positive performance [2][17] Centene (CNC) - Centene reported an adjusted EPS of $2.90 and sales of $46.6 billion, exceeding consensus estimates with a year-over-year earnings growth of 28% [3] - The company raised its 2025 premium and service revenues guidance by $6.0 billion, reflecting a 17% year-over-year improvement [3][6] - Analysts now expect Centene to post $172.8 billion in revenues for the current fiscal year, with a favorable Zacks Rank 2 (Buy) [6] Boston Scientific (BSX) - Boston Scientific surpassed both top and bottom line expectations, achieving a 12% EPS beat and sales 2.3% above expectations [8] - The company now anticipates FY25 sales growth between 15% and 17%, with current year sales expectations adjusted to $19.4 billion, a 10% increase from the previous year [10] Celestica (CLS) - Celestica exceeded Zacks Consensus EPS estimates by 8% and reported sales nearly 4% ahead of expectations, with a year-over-year sales growth of 20% [12] - The company raised its full-year 2025 revenue outlook to $10.85 billion from $10.7 billion, expecting non-GAAP adjusted EPS of $5.00, up from $4.75 [13] - Strong demand for solutions amid the AI trend and a shift to higher-margin products contributed to Celestica's stellar performance [13]

Core Viewpoint - Boston Scientific (BSX) is experiencing growth driven by new product launches and strategic acquisitions, with international expansion being a significant growth driver. The stock is rated as a Zacks Rank 2 (Buy) [1]. Group 1: Factors Driving Growth - Boston Scientific is successfully expanding its operations internationally, particularly in Europe, the Middle East, and Africa (EMEA), where sales grew 8% year over year in Q1 2025, driven by strong performance in electrophysiology (EP) and double-digit growth in key technologies [2]. - The Endoscopy business within MedSurg is benefiting from strong growth in endoluminal surgery and single-use imaging franchises, with positive reimbursement developments for its ESG weight loss procedure [3]. - Recent acquisitions, including Bolt Medical, Cortex, Silk Road, and Axonics, have added numerous products with potential, contributing to an 18.2% organic revenue growth in Q1, with closed acquisitions adding 400 basis points [4]. Group 2: Challenges and Competitive Landscape - Boston Scientific faces a challenging business environment due to macroeconomic pressures, including geopolitical tensions and global supply chain disruptions, with tariffs expected to impact $200 million in 2025 [6]. - The company reported a 20.2% increase in product costs and a 17.1% rise in selling, general, and administrative expenses in Q1 2024, indicating rising operational costs [7]. - The medical devices market is highly competitive, with Boston Scientific competing against well-capitalized companies like Johnson & Johnson, Abbott, and Medtronic, among others [8].

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, and Boston Scientific (BSX) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10] Earnings Growth - Boston Scientific has a historical EPS growth rate of 17.6%, with projected EPS growth of 15.8% for the current year, surpassing the industry average of 12.5% [4] Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 26.5%, significantly higher than the industry average of -8.8% [5] - Over the past 3-5 years, Boston Scientific's annualized cash flow growth rate has been 9.9%, compared to the industry average of 7.9% [6] Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Boston Scientific, with the Zacks Consensus Estimate increasing by 2.2% over the past month [8]

Core Viewpoint - Boston Scientific (BSX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][2]. - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to institutional investors who adjust their valuations based on these estimates [4][6]. Business Improvement Indicators - The upgrade in Boston Scientific's rating suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending December 2025, Boston Scientific is projected to earn $2.91 per share, reflecting a 15.9% increase from the previous year, with a 5.2% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Boston Scientific in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - In Q1 2025, total company operational sales grew 22% and organic sales grew 18%, exceeding the guidance range of 14% to 16% [10][34] - Adjusted EPS for Q1 was $0.75, a 34% increase, surpassing the guidance range of $0.66 to $0.68 [11][35] - Adjusted operating margin for Q1 was 28.9%, with adjusted gross margin at 71.5%, reflecting a 170 basis point improvement year-over-year [11][35][36] Business Line Data and Key Metrics Changes - Urology sales grew 25% operationally and 4% organically, driven by the core stone franchise [17] - Endoscopy sales increased by 6% both operationally and organically, with strong performance from the Axios platform [18] - Cardiology sales grew 31%, with interventional cardiology therapies sales up 9% [19][20] - Electrophysiology sales surged 145%, establishing the company as the 2 player in the market [24][25] Market Data and Key Metrics Changes - U.S. operational sales grew 31%, with double-digit growth in five of eight business units [13] - Europe, Middle East, and Africa saw 8% operational growth, led by exceptional performance in electrophysiology [14] - Asia Pacific grew 11% operationally, with Japan showing strong uptake of FARAPULSE [15] Company Strategy and Development Direction - The company remains committed to a diversified global manufacturing footprint, with significant investments in the U.S. [12][13] - The acquisition of SoniVie is expected to close in Q2 2025, enhancing the company's portfolio in ultrasound-based renal denervation technology [21][112] - The company aims to continue expanding its leadership in electrophysiology through clinical evidence and innovation [25][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic growth of 12% to 14% for the full year, despite a $200 million tariff impact [11][45] - The company anticipates continued strong performance in the cardiology portfolio and expects to offset tariff impacts through sales growth and cost reductions [12][45] - Management highlighted the importance of ongoing investments in clinical trials and product development to support future growth [21][60] Other Important Information - Dan Brennan, the CFO, announced his retirement after 30 years with the company, with John Monson set to succeed him [31][47] - The company received credit rating upgrades to single A- from both Standard & Poor's and Fitch ratings [39] Q&A Session Summary Question: Impact of tariffs on performance - Management confirmed a $200 million tariff headwind for 2025, primarily affecting the second half, and outlined strategies to offset this through revenue performance and discretionary spending reductions [51][53] Question: Market share in electrophysiology - Management expressed ambition to become the 1 player in electrophysiology, supported by strong clinical science and investments in the market [58][60] Question: WATCHMAN franchise growth - Management reported a 24% growth in WATCHMAN sales, driven by strong adoption of concomitant procedures and positive clinical data [64][66] Question: Trade environment and supply chain concerns - Management acknowledged challenges in the trade environment but emphasized the company's ability to absorb tariff impacts and maintain strong performance [74][76] Question: Outlook for CRM division - Management expressed confidence in the CRM division's future, with expected approval of the Empower device in the second half of 2025, which will enhance growth [100][102]

Core Viewpoint - Boston Scientific Corporation (BSX) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of 75 cents, a 33.9% increase year-over-year, surpassing both the Zacks Consensus Estimate and the company's own guidance range [1][3][11] Financial Performance - The first-quarter revenue reached $4.66 billion, reflecting a 20.9% year-over-year increase on a reported basis and 22.2% on an operational basis, exceeding the Zacks Consensus Estimate by 2.3% [3][11] - Reported EPS for the quarter was 45 cents, marking a 36.4% increase from the previous year [2] Revenue Breakdown - Revenue growth by region included a 31.1% increase in the United States, 5.5% in EMEA, 8.2% in Asia Pacific, and 4.4% in Latin America and Canada [4] - Emerging markets saw a reported revenue growth of 6.5% [4] Segment Performance - MedSurg segment revenues were $1.58 billion, up 11.7% year-over-year, with notable contributions from Endoscopy ($673 million), Urology ($633 million), and Neuromodulation ($271 million) [6] - Cardiovascular segment revenues reached $3.09 billion, a 26.2% increase, with Cardiology business sales totaling $2.43 billion, up 31.2% [7] Margin Analysis - Gross margin expanded by 19 basis points to 68.8%, while adjusted operating margin increased by 127 basis points to 24.8% [8] Future Outlook - For 2025, BSX anticipates net sales growth of approximately 15-17% on a reported basis and 12-14% on an organic basis, with adjusted EPS expected in the range of $2.87-$2.94 [9][10] - The second quarter of 2025 is projected to see revenue growth of 17.5-19.5% on a reported basis [10] Strategic Developments - Recent acquisitions include SoniVie Ltd. and Bolt Medical, which are expected to positively impact the company's growth trajectory [12]