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Boston Scientific (BSX)
NYSE:BSX

Boston Scientific (BSX) AI Stock Analysis

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Boston Scientific

(NYSE:BSX)

Rating:73Outperform
Price Target:
$117.00
▲(16.95%Upside)
Boston Scientific's strong financial performance and positive earnings call are significant strengths, supporting its strategic growth initiatives. However, the high valuation and recent product discontinuation pose risks. Technical indicators show stable momentum, but valuation concerns may limit upside potential.
Positive Factors
Growth Drivers
BSX expects to offset the impact of the ACURATE discontinuation with its other growth drivers including continued strong growth from FARAPULSE and WATCHMAN.
Market Position
BSX has seen its EP share increase to #2 in certain markets and is executing to become clear leader in the electrophysiology space.
Revenue Opportunities
BSX expects to disrupt how mapping is done with the recent launch of Faraview and Farawave Nav, which can be an incremental $2k-$4k revenue opportunity per case.
Negative Factors
Product Discontinuation
Boston Scientific announced the discontinuation of global Acurate neo2 and Acurate Prime TAVR valve sales, announcing that it would no longer be pursuing approval in the U.S. or other regions.
Regulatory Challenges
The decision was driven by recent discussions with US and European regulators, and management felt that the increased clinical evidence and regulatory hurdles needed to maintain product approvals globally for ACURATE would not be worth the investment.

Boston Scientific (BSX) vs. SPDR S&P 500 ETF (SPY)

Boston Scientific Business Overview & Revenue Model

Company DescriptionBoston Scientific Corporation (BSX) is a leading global medical technology company that develops, manufactures, and markets a wide range of medical devices used in various interventional medical specialties. The company operates in three main sectors: Cardiovascular, Rhythm Management, and MedSurg. Its core products include stents, catheters, pacemakers, implantable cardioverter-defibrillators, and other devices used in interventional cardiology, electrophysiology, endoscopy, urology, and pelvic health.
How the Company Makes MoneyBoston Scientific makes money primarily through the sale of its medical devices and technologies across its different business sectors. The company generates revenue from hospitals, clinics, and health systems that purchase its products for use in various medical procedures. Key revenue streams for Boston Scientific include its Cardiovascular segment, which offers products for coronary interventions, structural heart therapies, and peripheral interventions; the Rhythm Management segment, providing devices for cardiac rhythm disorders; and the MedSurg segment, which includes products for endoscopy, urology, and pelvic health. Additionally, Boston Scientific benefits from strategic partnerships and acquisitions that enhance its product portfolio and expand its market presence, contributing to its overall earnings.

Boston Scientific Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business lines, highlighting which segments are driving growth and which may need strategic adjustments.
Chart InsightsBoston Scientific's cardiology segment shows impressive growth, significantly contributing to the company's strong financial performance. Despite challenges like tariffs and supply chain issues, the cardiology and electrophysiology segments are driving revenue, with cardiology alone growing 31% in the latest quarter. However, the urology segment faces slower growth due to supply chain constraints. The company's strategic focus on cardiology and cost management is expected to counteract external pressures, supporting its raised full-year growth guidance.
Data provided by:Main Street Data

Boston Scientific Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 5.25%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong revenue and EPS growth exceeding expectations, particularly in the cardiology and electrophysiology segments. However, challenges such as significant tariff impacts, slower growth in certain segments, and foreign exchange headwinds were noted, adding some concerns to the otherwise strong performance.
Q1-2025 Updates
Positive Updates
Exceptional Revenue Growth
Total company operational sales grew 22% and organic sales grew 18%, both exceeding the high end of the guidance range of 14% to 16%.
Adjusted EPS Exceeds Guidance
First quarter adjusted EPS of $0.75 grew 34%, exceeding the high end of the guidance range of $0.66 to $0.68.
Cardiology Segment Performance
Cardiology delivered another fantastic quarter with sales growing 31%, including a 24% growth in WATCHMAN and 9% in interventional cardiology therapies.
Electrophysiology Leadership
Electrophysiology sales grew 145%, and the company is now the #2 player globally in EP.
Strong Regional Growth in the U.S.
The U.S. grew 31% with double-digit growth in 5 of 8 business units.
Negative Updates
Impact of Newly Enacted Tariffs
Tariffs are expected to have an approximate $200 million impact in 2025, posing a headwind to financial performance.
Challenges in Urology and CRM
Urology sales grew 4% organically, affected by supply chain issues. Cardiac Rhythm Management sales grew only 1% in the first quarter.
Foreign Exchange Headwind
A 130 basis point headwind from foreign exchange affected first quarter revenue growth.
Company Guidance
During the Boston Scientific First Quarter 2025 Earnings Call, the company reported robust financial performance and provided updated guidance. The firm's operational sales grew by 22%, with organic sales increasing by 18%, both surpassing the high end of the guidance range of 14% to 16%. Adjusted EPS for the quarter was $0.75, a 34% growth that exceeded the guidance range of $0.66 to $0.68. The adjusted operating margin was reported at 28.9%. Looking forward, Boston Scientific raised its full-year organic growth guidance from 10% to 12% to a range of 12% to 14%, reflecting strong performance in its cardiology portfolio. The company also provided second-quarter organic growth guidance of 13% to 15% and adjusted EPS guidance of $0.71 to $0.73, with a full-year adjusted EPS range of $2.87 to $2.94, indicating growth of 14% to 17%. Despite a $200 million impact from tariffs, the company plans to offset this through increased sales and strategic cost reductions.

Boston Scientific Financial Statement Overview

Summary
Boston Scientific shows a robust financial profile with consistent revenue growth, strong profitability, and efficient cash flow management. The company's balanced approach to leveraging debt and maximizing equity returns supports strategic growth. However, there is room for improvement in reducing debt levels.
Income Statement
85
Very Positive
Boston Scientific has demonstrated robust growth in its revenue, with a notable TTM (Trailing-Twelve-Months) increase of 4.81% compared to the previous year. The company maintains strong gross and net profit margins at 67.15% and 11.57% respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are solid at 17.52% and 21.65%, reflecting operational efficiency. Overall, the company shows a positive growth trajectory in the medical devices industry.
Balance Sheet
78
Positive
The balance sheet reflects a healthy financial position with a Debt-to-Equity ratio of 0.51, showing manageable leverage. The Return on Equity (ROE) stands at a strong 9.15%, indicating effective utilization of shareholders' equity. The Equity Ratio is 55.33%, suggesting a stable asset base supported by equity. Overall, the company maintains a strong balance between debt and equity, although there is room for improvement in reducing debt levels.
Cash Flow
80
Positive
Boston Scientific exhibits strong cash flow management with a Free Cash Flow growth rate of 8.62%, indicating improved cash generation. The Operating Cash Flow to Net Income ratio is 1.88, demonstrating the company's ability to convert income into cash efficiently. The Free Cash Flow to Net Income ratio is 1.41, reflecting good cash flow productivity. Overall, the company shows robust cash flow health, supporting its financial stability and operational needs.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
17.55B16.75B14.24B12.68B11.89B9.91B
Gross Profit
11.79B11.49B9.89B8.68B8.13B6.40B
EBIT
3.08B2.60B2.34B1.65B2.04B1.04B
EBITDA
4.09B3.94B3.45B2.74B2.52B1.51B
Net Income Common Stockholders
2.03B1.85B1.59B698.00M1.04B-140.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
570.00M414.00M865.00M928.00M1.93B1.73B
Total Assets
32.89B39.40B35.14B32.47B32.23B30.78B
Total Debt
9.37B11.15B9.49B9.28B9.45B9.54B
Net Debt
8.79B10.73B8.63B8.35B7.53B7.80B
Total Liabilities
14.78B17.39B15.61B14.90B15.61B15.45B
Stockholders Equity
17.85B21.77B19.28B17.57B16.62B15.33B
Cash FlowFree Cash Flow
2.87B2.65B1.70B914.00M1.32B1.13B
Operating Cash Flow
3.81B3.44B2.50B1.53B1.87B1.51B
Investing Cash Flow
-5.90B-5.69B-2.57B-2.01B-1.60B-411.00M
Financing Cash Flow
2.15B1.81B5.00M-548.00M-95.00M293.00M

Boston Scientific Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price100.04
Price Trends
50DMA
100.83
Negative
100DMA
101.38
Negative
200DMA
94.07
Positive
Market Momentum
MACD
0.04
Positive
RSI
38.05
Neutral
STOCH
14.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSX, the sentiment is Neutral. The current price of 100.04 is below the 20-day moving average (MA) of 104.08, below the 50-day MA of 100.83, and above the 200-day MA of 94.07, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BSX.

Boston Scientific Risk Analysis

Boston Scientific disclosed 27 risk factors in its most recent earnings report. Boston Scientific reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Boston Scientific Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$33.98B64.3223.72%9.11%-17.87%
ABABT
80
Outperform
$232.41B17.3330.66%1.71%5.00%139.98%
SYSYK
78
Outperform
$146.71B51.8114.26%0.85%10.76%-15.22%
MDMDT
75
Outperform
$112.15B24.229.49%3.20%3.62%31.18%
BSBSX
73
Outperform
$151.04B74.809.65%19.35%14.31%
EWEW
71
Outperform
$45.47B51.0216.73%-9.84%-35.77%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BSX
Boston Scientific
100.04
22.89
29.67%
ABT
Abbott Laboratories
133.40
29.67
28.60%
DXCM
Dexcom
85.68
-31.22
-26.71%
EW
Edwards Lifesciences
76.36
-10.64
-12.23%
MDT
Medtronic
87.45
8.18
10.32%
SYK
Stryker
385.05
41.82
12.18%

Boston Scientific Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Boston Scientific Discontinues Aortic Valve Systems
Negative
May 28, 2025

On May 28, 2025, Boston Scientific announced the discontinuation of its ACURATE neo2™ and ACURATE Prime™ Aortic Valve Systems, ceasing global sales and halting pursuit of FDA approval due to increased regulatory demands. Despite the financial implications, the company expects to meet its sales and earnings guidance for 2025, though it is withholding reaffirmation of its GAAP EPS guidance until further updates in its second quarter earnings call.

The most recent analyst rating on (BSX) stock is a Buy with a $113.00 price target. To see the full list of analyst forecasts on Boston Scientific stock, see the BSX Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Boston Scientific Stockholders Approve Key Governance Proposals
Positive
May 6, 2025

On May 1, 2025, Boston Scientific held its Annual Meeting of Stockholders virtually, where all 10 director nominees were elected for a one-year term. Additionally, stockholders approved the compensation for the company’s Named Executive Officers, ratified the appointment of Ernst & Young LLP as the independent public accounting firm for 2025, and supported a proposal for a simple majority vote, indicating strong shareholder engagement and support for the company’s governance and strategic direction.

Executive/Board Changes
Boston Scientific Announces CFO Retirement and Successor
Neutral
Apr 23, 2025

On April 23, 2025, Boston Scientific announced the retirement of Dan Brennan, its Chief Financial Officer, after nearly 30 years with the company. Brennan will be succeeded by Jon Monson, currently the Senior Vice President of Investor Relations, effective June 30, 2025. Monson, with over 25 years at Boston Scientific, brings extensive financial expertise and will oversee several key company functions. This leadership transition is expected to ensure continuity and further strengthen the company’s financial strategies and operations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.