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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

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Boston Scientific Bucks the Medtech Slow Down and Raises Outlook

Photo of the front of the Boston Scientific Building. Boston Scientific Defies Medtech Slowdown, Raises Outlook

Medical device maker Boston Scientific Co.'s (NYSE: BDX) product portfolio encompasses a wide range of therapeutic areas, from cardiovascular, urology, and neuromodulation to endoscopy instruments and rhythm management. The medical sector company is acquiring rhythm modulation device maker Axonics Inc. (NASDAQ: AXNX) in the second half of 2024 as the FTC requests additional information on the deal. Boston Scientific's main competitors are medical device makers, including Medtronic plc (NYSE: MDT), Stryker Co. (NYSE: SYK) and Abbott Laboratories (NYSE: ABT).

Product Portfolio Revenue Streams

Boston Scientific has two divisions: Cardiovascular and Medical Surgery (MedSurg).

In Q1 2024, 63% of revenues came from the Cardiovascular segment, with $1.872 billion. This is split between interventional cardiology (ICTx) at $652 million, Watchman at $344 million, cardiac rhythm management (CRM) at $575 million and electrophysiology (EP) at $300 million. Peripheral intervention (PI), comprised of stents, balloons and catheter sales, generated $573 million. Cardiovascular revenues rose 15.9% YoY to $2.445 billion in revenues.

Under MedSurg, endoscopy generated $642 million. Urology generated $513 million. Neuromodulation generated $256 million. The MedSurg segment saw a 10.3% rise in YoY revenues to $1.413 million.

Chart showing how BSX hit new 52-week highs on a stellar Q12024 earnings report and raise full year 2024 guidance.

Daily Ascending Triangle

BSX formed a daily ascending triangle breakout pattern. The ascending trendline started at $65.52, catching all pullbacks at higher highs against the flat-top horizontal upper trendline at $69.00. The Q1 2024 EPS beat and raised guidance triggered a gap the following morning and the breakout. Shares peaked at $74.39 and established the gap fill at $72.55. The daily relative strength index (RSI) bounced through the 70-band to stall flat at the 75-band. Pullback support levels are at $70.48, $69.00, $66.80 and $64.14.

Solid Q1 2024 Results

Boston Scientific reported Q1 2024 EPS of 56 cents, beating analyst expectations by 5 cents. Revenues rose 13.8% YOY to $3.86 billion, beating $3.68 billion consensus estimates. Shares surged to new 52-week highs on the results and its updated raised guidance.

Upside Guidance

Boston Scientific issued upside guidance for Q2 2024 EPS of 57 cents to 59 cents. Revenues are expected to rise 10.5% to 12.5% or $3.98 billion to $4.05 billion versus $3.93 billion consensus estimates. Full-year 2024 EPS was raised to $2.29 to $2.34 versus $2.26 consensus estimates. Revenues are expected to rise 11% to 13% YoY to $15.8 billion to $16.1 billion versus $15.59 billion consensus estimates. 

CEO Insights

[content-module:CompanyOverview|NYSE: BSX]Boston Scientific CEO Mike Mahoney pointed out the Q1 2024 results surpassed its internal expectations. This was driven by the nearly 90 new products that were launched globally in 2023. Operations sales rose 15% YOY in the first quarter of 2024, and organic sales rose 13%, exceeding the 9% high-end expectations. Six of its eight business units rang up double-digit gains.

Mahoney shared insights on its different business units. Urology sales rose 10% operationally and organically, with double-digit growth in stone management and prosthetic urology. Endoscopy sales rose 12% operationally and 10% organically, underpinned by differentiated anchored products like AXIOS and single-use imaging products. Neuromodulation sales jumped 10% operationally but declined 1% organically. Its brain franchise grew in the high single-digits.

The company received NYSE: ABT">FDA approval for WaveWriter, a non-surgical back pain indication and next-gen FAST auto-dose. Peripheral intervention saw 16% operation growth and 11% organic growth in the quarter. Cardiology saw fantastic strength, growing 18% operationally and organically.

Mahoney commented, "Our exceptional results this quarter were fueled by our talented global team and the strength of our diversified businesses and pipeline, including the initial U.S. launch of the FARAPULSE™ Pulsed Field Ablation System."

Needham Predicted Correctly

Needham had correctly guessed that Boston Scientific would beat their consensus estimate numbers several days before the earnings release. The impressive thing is that this happened despite the softness of the medical device market, as it only grew 5.3% in Q1 2024 versus 8.3% YOY in Q4 2023. They also correctly predicted that Boston Scientific would be able to bear consensus estimates and guide higher due to the new product launches combined with management's conservative guidance.

Boston Scientific analyst ratings and price targets are at MarketBeat.

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