Core Insights - Boston Scientific (BSX) is expected to report its second-quarter 2025 results on July 23, with prior EPS of 75 cents exceeding estimates by 11.94% [1] - The company has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 8.79% [1] Revenue and EPS Estimates - The Zacks Consensus Estimate for BSX's Q2 2025 revenues is $4.89 billion, reflecting an 18.7% increase year-over-year [2] - The EPS estimate for Q2 2025 is projected at 72 cents, indicating a 16.1% rise compared to the previous year [2] Performance Influencers - The MedSurg division is anticipated to maintain strong sales momentum, particularly in the Endoscopy business, driven by the Axios platform and technologies like OverStitch and Mantis clip [4] - The Urology business is expected to benefit from its core stone management franchise and the integration of the Axonics acquisition [5] - Neuromodulation growth is likely supported by the Brain and Pain franchises, with positive trends from Deep Brain Stimulation and the Intercept product [6] Segment Performance - MedSurg revenues are estimated at $1.68 billion, a 13.1% year-over-year increase [7] - The Cardiovascular unit is projected to perform well, with revenues expected to rise 8.3% year-over-year to $719.95 million [14] - Key contributors to Cardiovascular growth include the AGENT Drug-Coated Balloon and the completion of the SoniVie acquisition [10][11] Earnings Expectations - Boston Scientific has an Earnings ESP of +0.88%, indicating a higher likelihood of beating estimates [15] - The company holds a Zacks Rank of 2 (Buy), suggesting favorable conditions for earnings performance [16]

Core Insights - Boston Scientific's MedSurg segment is experiencing robust growth, particularly in endoscopy, neuromodulation, and urology, with promising long-term prospects for WATCHMAN devices [1][5][8] - The company's stock has outperformed the industry and S&P 500, with a 33.6% increase over the past year [2] - Strategic acquisitions have significantly contributed to revenue growth, with recent buyouts adding 400 basis points to Q1 sales and driving 18.2% organic revenue growth [6][9] MedSurg Segment Performance - The Endoscopy business is gaining market share due to strong growth in endoluminal surgery and single-use imaging franchises, alongside the AXIOS platform [3] - Urology market share is expanding globally, driven by successful product launches like the TENACIO pump and the LithoVue portfolio [4] - Neuromodulation is also seeing growth, particularly in pain and brain businesses, with expectations for improved growth in deep brain stimulation by 2025 [4] WATCHMAN Device Growth - The WATCHMAN device is gaining momentum as a leading non-pharmacologic alternative to oral anti-coagulants, with a 24% year-over-year sales increase in Q1 2025 [5][8] - The next-generation WATCHMAN FLX and FLX Pro are capturing significant market share [5] Strategic Acquisitions - Recent acquisitions, including Bolt Medical and Cortex, have added valuable products to Boston Scientific's portfolio [6] - The acquisition of Axonics in Q4 2024 has also contributed positively to sales growth [9] Financial Performance - The company has consistently beaten earnings estimates, with an average surprise of 8.79% over the last four quarters [2] - The Zacks Consensus Estimate for 2025 earnings per share is $2.91, with revenues expected to rise by 16.4% to $19.50 billion [11] Currency Exposure - Boston Scientific faces risks from currency fluctuations, with 40% of sales coming from international markets, which could impact revenues by 50 basis points in 2025 [10]

Industry Overview - The MedSurg equipment market is projected to grow at a compound annual growth rate (CAGR) of 9.54% from 2025 to 2030 [1] - The growth is driven by an aging population, rising chronic diseases, and rapid technological advancements [3] Boston Scientific (BSX) - Boston Scientific's MedSurg segment is gaining market share, particularly in Endoscopy, Urology, and Neuromodulation [4] - The Endoscopy segment is experiencing growth due to endoluminal surgery and single-use imaging [4] - Urology is benefiting from strong contributions from the Core Stone and prosthetic urology franchises [4] - Neuromodulation is boosted by new products like Cartesia leads and Lumina 3D programming algorithm [4] - The structural heart segment is also performing well, with a 24% growth in WATCHMAN sales [5] - Emerging markets are a vital growth engine, with net sales growing nearly 9.8% year-over-year [6] - In Q1, Boston Scientific reported an adjusted gross margin increase of 19 basis points and an operating margin improvement of 127 basis points [7] - The company raised its full-year 2025 outlook, projecting 15-17% reported net sales growth and adjusted EPS of $2.87-$2.94 [7] Medtronic (MDT) - Medtronic's MedSurg portfolio is benefiting from positive sales momentum in Surgical Robotics, particularly the Hugo robotic-assisted surgery system [8] - The Hugo RAS system has expanded its installed base to 30 countries, with growth in procedure volumes and utilization [8] - Medtronic is seeing significant growth in Cardiac Ablation Solutions, with nearly 30% growth in the fiscal fourth quarter [9] - The company is focused on expansion in emerging markets, which grew mid-single digits in the quarter [11] - Medtronic's operational performance in Q1 showed gross margin improvement of 19 basis points and operating margin growth of 210 basis points [12] - For fiscal 2026, Medtronic projects organic revenue growth of 5% over fiscal 2025 [12] Stock Performance - Over the past year, Boston Scientific's shares have risen by 35.2%, while Medtronic's shares have gained only 7.4% [13] - Boston Scientific is trading at a forward five-year price-to-sales (P/S) ratio of 7.5X, compared to Medtronic's 3.1X [15] - The Zacks Consensus Estimate for Boston Scientific's 2025 EPS implies a year-over-year improvement of 15.9% [17] - Analysts have shown declining confidence in Medtronic, with downward EPS estimate revisions in the last 60 days [18] Investment Outlook - Boston Scientific is gaining strength across MedSurg and structural heart segments, supported by innovation and global expansion [19] - Despite expected tariff impacts, Boston Scientific's raised guidance reflects confidence in sustained growth [19] - Medtronic, while carrying a Zacks Rank 4 (Sell), may attract value-focused investors due to its discounted P/S ratio [20]