Why Is Boston Scientific (BSX) Up 7.5% Since Last Earnings Report?

It has been about a month since the last earnings report for Boston Scientific (BSX). Shares have added about 7.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Boston Scientific due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Boston Scientific Q3 Earnings Beat Estimates, View UpBoston Scientific posted adjusted earnings per share of 63 cents for the third quarter of 2024, up 26% from the year-ago figure. The figure beat the Zacks Consensus Estimate by 8.6% and also exceeded the company’s adjusted earnings per share guidance range of 57-59 cents per share.The quarter’s adjustments included certain amortization expenses, acquisition/divestitures-related net charges, and restructuring and restructuring-related charges, among others.Reported earnings per share for the third quarter was 32 cents, reflecting a 5.9% decline from the year-ago quarter figure.Third-quarter revenues of $4.21 billion improved 19.4% year over year on a reported basis and 19.5% on an operational basis (at a constant exchange rate or CER). Revenues grew 18.2% on an organic basis (adjusted for foreign currency fluctuations and certain recent acquisitions and divestments).The top line exceeded the Zacks Consensus Estimate by 4.5%. The quarter’s top-line performance also exceeded the company’s projection of 13-15% growth on a reported basis (same organically).Q3 Revenues in DetailIn the third quarter, revenues rose 23.5% in the United States on a reported basis (same operationally).Reported revenues rose 15.2% in the Europe, Middle East and Africa (EMEA) region (up 14.3% operationally) and 12.1% in the Asia Pacific zone (up 12.3% operationally).Reported revenues increased 9% in Latin America and Canada (up 15.1%).Reported revenue growth in emerging markets was 15.2% (up 16.8% operationally).Segmental AnalysisBoston Scientific recently reorganized its operational structure and aggregated its core businesses, each of which generates revenues from the sale of Medical Devices, into two reportable segments, MedSurg and Cardiovascular.The company generates maximum revenues from Cardiovascular. Cardiology and Peripheral Interventions sales, its sub-segments, were $2.13 billion (up 29.3% year over year organically) and $602 million (up 10.3%), respectively, in the third quarter.Within MedSurg, Endoscopy generated revenues of $678 million, up 7.4% organically.Urology revenues were $532 million, reflecting organic growth of 10.4%.Neuromodulation within MedSurg reported $268 million in revenues, reflecting a 2.7% rise organically year over year.MarginsGross margin in the third quarter improved 5 basis points (bps) year over year to 68.8%. There was a 19.2% rise in the cost of products sold to $1.31 billion in the reported quarter.Selling, general and administrative expenses rose 25.8% to $1.56 billion. Research and development expenses rose 14.3% to $407 million. Royalty expenses of $5 million, however, declined 55% year over year. Adjusted operating margin contracted 123 bps to 21.9% in the reported quarter.2024 GuidanceBoston Scientific updated its full-year guidance and provided its fourth-quarter 2024 projections.Full-year net sales growth is expected to be approximately 16.5% on a reported basis (up from the earlier expectation of 13.5-14.5% growth) and approximately 15% on an organic basis (13-14% growth projected earlier). The Zacks Consensus Estimate is currently pegged at $16.26 billion, indicating a 14.2% rise from the 2023 reported figure. Full-year adjusted earnings per share is expected in the range of $2.45 to $2.47 ($2.40 to $2.42 estimated earlier). The Zacks Consensus Estimate is currently pegged at $2.40.For the fourth quarter of 2024, revenue growth is projected in the range of approximately 16.5-18.5% on a reported basis (up 14-16% organically). Adjusted earnings are expected in the range of 64-66 cents per share. The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at 64 cents per share and $4.25 billion, respectively.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates review.VGM ScoresAt this time, Boston Scientific has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Boston Scientific has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerBoston Scientific is part of the Zacks Medical - Products industry. Over the past month, Abbott (ABT), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended September 2024 more than a month ago.Abbott reported revenues of $10.64 billion in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $1.21 for the same period compares with $1.14 a year ago.Abbott is expected to post earnings of $1.34 per share for the current quarter, representing a year-over-year change of +12.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of D.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks