Banking

Boston Scientific Clears Buy Point On Earnings

Boston Scientific (BSX) easily beat Wall Street’s first-quarter expectations and boosted its 2021 outlook, leading BSX stock to reclaim a buy point.




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All three of the medical technology company’s key businesses grew year over year. The medical surgical segment was a “standout,” Evercore ISI analyst Vijay Kumar said in a report to clients.

“On a pre-pandemic basis, we think Boston Scientific grew 3%, which compares to Stryker‘s (SYK) 4.7% growth — this seems reasonable adjusting for revenue mix,” he said. “What was notable was the U.S. performance, which grew 8.6% operationally.”

Kumar kept his outperform rating and 46 price target on BSX stock.

BSX Stock Reclaims Buy Point

In morning action on today’s stock market, BSX stock jumped 4.7% near 44.40. That put BSX stock above a buy point at 42.47 out of a saucer base on the MarketSmith.com weekly chart. Boston Scientific stock cleared that entry late last week but dipped below on Monday.

Overall, sales increased 8.2% on a strict as-reported basis to $2.75 billion. Organically, revenue grew 5.9%, Boston Scientific said in a news release. Adjusted profit surged 32.1% to 37 cents per share. Both measures beat forecasts for 31 cents earnings per share and $2.62 billion in sales.

Medical surgical sales popped 11.1% as the rhythm/neurological and cardiovascular businesses grew 6.8% and 10%, respectively.

Boston Scientific boosted its full-year guidance. Now, the company forecasts 16%-19% net sales growth and adjusted earnings of $1.53-$1.60 per share. BSX stock analysts called for 16% sales growth and earnings of $1.54 a share.

For the second quarter, Boston Scientific guided to 46%-50% sales growth and 36-38 cents profit per share. That beat views for adjusted earnings of 35 cents a share and 38% revenue growth.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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