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Global Expansion, Strategic Innovations Aid Boston Scientific Stock
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Boston Scientific Corporation (BSX - Free Report) is gaining traction in the international regions. New regulatory approvals and accretive acquisitions bode well for long-term growth. The stock carries a Zacks Rank #2 (Buy) currently.
Factors Driving BSX Shares
Boston Scientific continues to successfully expand its operations across different geographies outside the United States. In 2023, 41% of the company’s consolidated revenues came from international regions.
Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets (countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which hold strong growth potential based on their economic conditions, healthcare sectors and global capabilities. In the second quarter of 2024, despite geopolitical weaknesses, emerging market registered sturdy growth, primarily driven by continued broad-based momentum across the company’s business and investment in this region. During this period, emerging markets' net sales grew nearly 19.3% year over year on an operational basis.
We are impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should boost the top line in the long term.
In June 2024, Boston Scientific initiated the acquisition of Silk Road Medical for $1.16 billion. This acquisition is expected to help the company’s progress in vascular medicine, where Silk Road has revolutionized stroke prevention and the treatment of carotid artery disease. In December 2023, Boston Scientific initiated the acquisition of Axonics, a medical technology company that offers innovative devices and treats urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Particularly, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises.
Within Urology, Boston Scientific continues to expand its market share globally. The company’s Stone management and prostheticurology franchises are growing well led by direct-to-patient efforts, driving patient awareness and early contribution from the limited market release of the Tenacio Pump.
Over the past three months, shares of BSX have gained 10.6% compared with the industry’s 13.7% growth. With the company consistently focusing on growing through strategic acquisitions, new product launches and expansion in high-growth international markets, we expect the stock to continue its upward movement in the coming days.
Concerning Factors for BSX
Difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets are creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and the tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressure, the company may struggle to keep in check its operating expenses.
In the second quarter of 2024, the company reported a 20% rise in the cost of products sold, leading to a 1437 basis points contraction in gross margin. Further, there was a 6.8% rise in selling, general and administrative expenses.
With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players, too.
In 2023, the company witnessed an approximate 80 basis-point headwind from foreign exchange on revenues. Again, in the second quarter of 2024, the company experienced a 160 basis-point impact on revenues from unfavorable currency fluctuations.
Estimates for TransMedics’ 2024 earnings per share have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 175.2% in the past year compared with the industry’s growth of 17.6%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for Phibro Animal Health’s 2024 earnings per share have risen 0.7% in the past 30 days. Shares of the company have rallied 77% in the past year compared with the industry’s 20.6% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.
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Global Expansion, Strategic Innovations Aid Boston Scientific Stock
Boston Scientific Corporation (BSX - Free Report) is gaining traction in the international regions. New regulatory approvals and accretive acquisitions bode well for long-term growth. The stock carries a Zacks Rank #2 (Buy) currently.
Factors Driving BSX Shares
Boston Scientific continues to successfully expand its operations across different geographies outside the United States. In 2023, 41% of the company’s consolidated revenues came from international regions.
Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets (countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada), which hold strong growth potential based on their economic conditions, healthcare sectors and global capabilities. In the second quarter of 2024, despite geopolitical weaknesses, emerging market registered sturdy growth, primarily driven by continued broad-based momentum across the company’s business and investment in this region. During this period, emerging markets' net sales grew nearly 19.3% year over year on an operational basis.
We are impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should boost the top line in the long term.
In June 2024, Boston Scientific initiated the acquisition of Silk Road Medical for $1.16 billion. This acquisition is expected to help the company’s progress in vascular medicine, where Silk Road has revolutionized stroke prevention and the treatment of carotid artery disease. In December 2023, Boston Scientific initiated the acquisition of Axonics, a medical technology company that offers innovative devices and treats urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Boston Scientific is consistently gaining market share within its MedSurg segment. The Endoscopy business within MedSurg is gaining from strong worldwide demand for its broad range of gastrointestinal (GI) and pulmonary treatment options. Particularly, the company is gaining market share with its biliary franchise led by the AXIOS Stent and Delivery System and the hemostasis, single-use imaging and metal stents franchises.
Within Urology, Boston Scientific continues to expand its market share globally. The company’s Stone management and prostheticurology franchises are growing well led by direct-to-patient efforts, driving patient awareness and early contribution from the limited market release of the Tenacio Pump.
Over the past three months, shares of BSX have gained 10.6% compared with the industry’s 13.7% growth. With the company consistently focusing on growing through strategic acquisitions, new product launches and expansion in high-growth international markets, we expect the stock to continue its upward movement in the coming days.
Concerning Factors for BSX
Difficult macroeconomic conditions in the form of geopolitical pressure leading to disruptions in economic activity, global supply chains and labor markets are creating a challenging business environment for Boston Scientific. International conflicts, including the Russia-Ukraine war and the tension between China and Taiwan, have increased cybersecurity risks on a global basis. Further, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific’s profitability. With the sustained macroeconomic pressure, the company may struggle to keep in check its operating expenses.
In the second quarter of 2024, the company reported a 20% rise in the cost of products sold, leading to a 1437 basis points contraction in gross margin. Further, there was a 6.8% rise in selling, general and administrative expenses.
With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players, too.
In 2023, the company witnessed an approximate 80 basis-point headwind from foreign exchange on revenues. Again, in the second quarter of 2024, the company experienced a 160 basis-point impact on revenues from unfavorable currency fluctuations.
Other Key Picks
Some other top-ranked stocks in the broader medical space are TransMedics Group (TMDX - Free Report) , AxoGen (AXGN - Free Report) and Phibro Animal Health (PAHC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for TransMedics’ 2024 earnings per share have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 175.2% in the past year compared with the industry’s growth of 17.6%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for Phibro Animal Health’s 2024 earnings per share have risen 0.7% in the past 30 days. Shares of the company have rallied 77% in the past year compared with the industry’s 20.6% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.