Expect Boston Scientific’s Q4 Adjusted Earnings To Grow In High Single-Digits

Boston Scientific (NYSE:BSX) is set to report its Q4 2018 earnings on February 6, and we expect the company to post mid-single-digit revenue growth, and adjusted earnings per share to grow in high single-digits. The company will likely see steady growth in all segments, primarily the MedSurg segment, which should benefit from continued growth in both Endoscopy, and Urology & Pelvic Health. We have created an interactive dashboard analysis ~ What To Expect From Boston Scientific’s Q4. You can adjust various drivers to see the impact on the company’s earnings, and price estimate.

Expect Revenues To Grow In Mid-To-High Single-Digits

We expect Boston Scientific’s MedSurg revenue to grow in high single-digits in Q4. This will likely be driven by robust growth in LithoVue Digital Flexible Ureteroscope, and NxThera’s Rezûm System. The company’s recent acquisitions, including NxThera, contributed 40 bps to the top line growth in the previous quarter, and the contribution will likely be higher in the coming quarters. The Endoscopy business will likely benefit from higher demand for Resolution 360 Clips, SpyGlass DS Direct Visualization System, as well as Acquire Endoscopic Ultrasound Fine Needle Biopsy Device. All these devices have seen steady sales growth in the recent past, and we expect this trend to continue in the near term.

Rhythm Management segment will likely benefit from strong growth in both Neuromodulation, and Electrophysiology. Neuromodulation growth will be aided by the company’s new product line, Spectra WaveWriter Spinal Cord Stimulator (SCS) Systems, while Electrophysiology revenues will be aided by the expansion of Rhythmia range of mapping systems. Looking at Cardiovascular, we expect steady growth, primarily led by strong demand for the company’s drug eluting products. We also expect margins to trend higher in Q4, led by cost-cutting measures.

Overall, we expect the company to post adjusted earnings of $0.38 per share in Q4, which is toward the higher end of the company’s own guidance. Note that the adjusted earnings per share figure excludes the tax reinvestment planned during the quarter. We currently have a $38 price estimate for Boston Scientific, which we will update post the Q4 results announcement. 

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