Should You Buy Boston Scientific Stock Ahead of Q1 Earnings?

Core Viewpoint - Boston Scientific (BSX) is expected to report first-quarter 2025 results on April 23, projecting adjusted earnings between 66-68 cents per share and revenue growth of approximately 17-19% on a reported basis, with organic growth of 14-16% [1] Financial Performance - The Zacks Consensus Estimate for earnings is steady at 67 cents per share, indicating a 19.6% growth from the previous year [2] - BSX has beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 8.25% [2] Earnings Expectations - Boston Scientific has an Earnings ESP of 0.00%, indicating a lower chance of beating estimates [3] - The company currently holds a Zacks Rank 3 (Hold) [3] Business Growth Factors - The company experienced above-market growth across all business units in 2024, with expectations of continued momentum in Q1 2025, driven by demand in Electrophysiology and strong global franchises [4] - Asia-Pacific, particularly Japan and China, is expected to perform well, with Japan benefiting from the adoption of AGENT DCB and China projected to grow in the mid-teens despite pricing headwinds [5] Profitability Challenges - Profitability may remain sluggish due to a challenging supply environment, tariff complications, rising labor and raw material costs, and healthcare staffing shortages [6] Segment Performance - The WATCHMAN subsegment is expected to show strong growth, with a consensus revenue estimate of $408.6 million for Q1, reflecting a 16.5% increase year-over-year [8] - Interventional Cardiology is projected to see steady growth, with estimated revenues of $678 million, a 3.9% improvement [9] - Peripheral Interventions are expected to generate $659 million in revenues, indicating a 15% increase [10] - Interventional Oncology and Urology/Pelvic Health are anticipated to show strong growth due to robust product offerings [11] Stock Performance - BSX stock has gained 41.6% over the past year, outperforming its industry and peers like Abbott and Medtronic [14] - The Wall Street average price target for BSX is $118.29 per share, suggesting a 24.2% upside from current levels [19] Valuation Concerns - BSX has a Value Score of D, indicating a stretched valuation, with a forward P/E ratio of 32.19 compared to the industry average of 20.45 [17] - Current shareholders are advised to hold, while new investors may consider waiting for a better entry point [23]