BSX Pre-Q4 Earnings: To Buy or Not to Buy Boston Scientific Stock Now?

Core Viewpoint - Boston Scientific (BSX) is expected to report fourth-quarter fiscal 2024 results on February 5, with projected adjusted earnings between 64-66 cents per share and revenue growth of approximately 16.5-18.5% on a reported basis, indicating a strong performance compared to the previous year [1][2]. Financial Projections - The Zacks Consensus Estimate for earnings is steady at 65 cents per share, reflecting an 18.2% growth from the same quarter last year [2]. - BSX's earnings have consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 8.29% [3]. Earnings Expectations - Boston Scientific has an Earnings ESP of -0.60%, which suggests a lower likelihood of beating estimates this quarter [4]. - The company currently holds a Zacks Rank of 3 (Hold) [5]. Market Demand and Growth Factors - Increased hospital admissions in the U.S. have driven demand for BSX's products, with expectations of continued sales growth due to its innovative pipeline and expansion into faster-growing markets [6]. - Despite challenges in profitability due to supply chain issues and rising costs, BSX is well-positioned for decent sales results [7]. Geographic Performance - Strong growth is anticipated across all geographic regions, particularly in EMEA and Asia Pacific, with notable performance in China and Japan driven by new product launches [8][10]. - The WATCHMAN subsegment within the Cardiovascular division is expected to report strong growth, with revenues estimated at $406 million, a 17.6% increase year-over-year [13][14]. Segment Performance - The Interventional Cardiology business is projected to achieve revenues of$ 672 million, reflecting a 9.4% improvement [15][16]. - Peripheral Intervention revenues are estimated at $628 million, indicating a 17.8% growth [17][18]. - The Urology/Pelvic Health and Endoscopy segments are also expected to show strong growth due to innovative products [19]. Stock Performance - BSX stock has increased by 66.9% over the past year, outperforming its industry and major competitors [22]. - However, the stock is considered expensive with a forward P/E ratio of 36.54, higher than the industry average of 22.93 [25]. Analyst Insights - The Wall Street average price target for BSX is$ 103.74 per share, suggesting a modest upside of 1.4% from current levels [26]. - Despite macroeconomic challenges, BSX is witnessing strong demand across its core businesses, indicating potential for future growth [29].