Why Medical Devices Giant Boston Scientific Shares Are Rising Today

Author: Nabaparna Bhattacharya | January 31, 2024 10:27am

Boston Scientific Corporation (NYSE:BSX) shares are trading higher in the premarket session on Wednesday.

The company generated fourth-quarter revenues of $3.725 billion, beating the Wall Street estimate of $3.59 billion.

Sales soared 14.9% on a reported basis, 14.5% on an operational basis, and 13.6% on an organic basis.

The company earned an adjusted EPS of $0.55, beating the consensus of $0.51 (management expectation was $0.49 to $0.52 per share).

Revenues from MedSurg increased 11.1% to $1.44 billion (8.9% organic), and the Cardiovascular segment generated $2.285 billion, +13.9% (13.3% organic).

The gross margin was 69.23%, up from 68.81% a year ago.

Recently, the company disclosed an agreement to acquire Axonics, Inc. (NASDAQ:AXNX) that offers differentiated devices to treat urinary and bowel dysfunction.

Boston Scientific received U.S. Food and Drug Administration (FDA) approval of the FARAPULSE Pulsed Field Ablation (PFA) System for the isolation of pulmonary veins in the treatment of drug-resistant, recurrent, symptomatic, paroxysmal (i.e., intermittent) atrial fibrillation (AF).

Outlook: Boston Scientific estimates net sales growth for the full year 2024 of approximately 8.5%-9.5% year on year on a reported basis and approximately 8%-9% on an organic basis.

The company sees full-year 2024 adjusted EPS of $2.23-$2.27 versus a consensus of $2.24

Boston Scientific estimates net sales growth for first quarter of approximately 7.5%-9.5% year over year on a reported basis, and approximately 7%-9% on an organic basis. The company sees adjusted EPS of $0.50-$0.52 versus consensus of $0.52.

Price Action: BSX shares are up 4.49% at $64.18 premarket on the last check Wednesday.

Posted In: AXNX BSX