Boston Scientific (BSX) Q2 Earnings Beat, Organic Sales Rise

Core Insights - Boston Scientific Corporation (BSX) reported adjusted earnings per share (EPS) of 62 cents for Q2 2024, a 16.9% increase year-over-year, surpassing Zacks Consensus Estimate by 6.9% and exceeding its own guidance range of 57-59 cents [1] - The company achieved revenues of $4.12 billion in Q2 2024, reflecting a 14.5% year-over-year increase on a reported basis and 16.1% on an operational basis, exceeding Zacks Consensus Estimate by 2.5% [2] Revenue Performance - Q2 revenues rose 16.9% in the United States and 13.7% in the EMEA region, with Latin America and Canada seeing a 15.3% increase [3] - Emerging markets reported a revenue growth of 14.8% [3] Segment Analysis - Boston Scientific reorganized its operations into two segments: MedSurg and Cardiovascular, with Cardiovascular generating the most revenue [4] - Cardiovascular sales reached $2.05 billion, up 22% year-over-year, while MedSurg's Endoscopy segment generated $676 million, reflecting a 7.9% organic growth [4] Margin and Cost Analysis - Gross margin contracted by 143 basis points to 69.2%, with a 20% increase in the cost of products sold [5] - Adjusted operating margin expanded by 189 basis points to 24.6% [5] Guidance and Projections - The company raised its full-year net sales growth guidance to approximately 13.5-14.5% on a reported basis and 13-14% on an organic basis [7] - For Q3 2024, Boston Scientific estimates revenue growth of 13-15% and adjusted EPS in the range of 57-59 cents [8] Market Position and Outlook - The strong Q2 performance and raised guidance are expected to bolster investor confidence in Boston Scientific's stock [9] - The company continues to gain market share across all geographic regions despite macroeconomic challenges [9]