What To Expect From Boston Scientific’s Q2?

by Trefis Team
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Boston Scientific (NYSE:BSX) is set to report its Q2 2018 earnings on July 25, and we expect the company to post steady growth, primarily led by its MedSurg segment. We also expect the company’s Cardiovascular, and Rhythm Management to see mid-to-high single digit growth. The company is on an acquisition spree this year, and it announced the acquisition of Cryterion Medical, and Claret Medical this month. Earlier this year, the company also announced the acquisitions of nVision Medical Corp and Securus Medical Group. We’ll be looking forward to hearing from the company’s management on recent acquisitions and expected growth going forward. We continue to believe that the MedSurg segment will remain a key growth driver for Boston Scientific in the near term, led by Endoscopy, and Women’s Health. We have created an interactive dashboard ~ What Is The Outlook For Boston Scientific ~ on the company’s expected performance in 2018. You can adjust the revenue and margin drivers to see the impact on the company’s overall revenues, earnings, and price estimate.

Expect MedSurg Segment To Outperform In 2018

We expect Boston Scientific’s MedSurg revenue to grow in high single digits in 2018, primarily led by a continued growth in Endoscopy, which grew 10% in the previous quarter. The company has been introducing new products, such as Spyglass and Resolution 360, which are aiding the segment revenue growth. The company also expects to launch several other products over the next few years, which should help in increasing its market share. Within MedSurg, both Endoscopy and Urology and Women’s Health are seeing strong growth of late, and we expect this trend to continue in the near term. Apart from new products, Endoscopy is also benefiting from the Axios stent and delivery system, along with other anti-infective products, and pathology services, while Urology and Women’s Health revenue growth is led by LithoVue and the benign prostatic hyperplasia business.

Expect Cardiovascular And Rhythm Management To Grow In Mid-Single Digits

In the Cardiovascular segment, we expect revenues to grow in mid-to-high single digits, primarily led by Synergy, and Promus stents. In addition, the peripheral interventions sales will likely see steady growth, led by a range of new products, including Mustang percutaneous transluminal angioplasty (PTA) balloon, and Charger PTA Balloon Catheter. Looking at the Rhythm Management segment, we forecast revenues to grow in low-to-mid single digits in 2018. Within Rhythm Management, we expect robust growth in Electrophysiology, primarily led by continued growth in Rhythmia Mapping System, and Neuromodulation, which is seeing strong growth in Precision Montage spinal cord stimulator. We expect these trend to continue in the near term. However, revenue from Cardiac Rhythm Management will likely continue to see slow growth.

Overall, we expect the company to post adjusted earnings of $1.36 in 2018. We forecast a price to earnings multiple (TTM) of 26x by the end of 2018, to arrive at our price estimate of $35 for Boston Scientific, which is slightly above the current market price. 

 

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