Boston Scientific BSX is slated to report first-quarter 2025 results on April 23, before market open.

For first-quarter 2025, Boston Scientific projects adjusted earnings in the range of 66-68 cents per share. Revenue growth is projected in the range of approximately 17-19% on a reported basis (up 14-16% organically).

The Zacks Consensus Estimate for earnings has been steady at 67 cents per share over the past 60 days, indicating 19.6% growth from the figure reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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BSX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 8.25%.

What Our Model Unveils for BSX

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here.

Earnings ESP: Boston Scientific has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

Factors to Note Prior to Boston Scientific's Q1 Earnings

The company witnessed above-market growth across all business units in 2024. The momentum is expected to have continued in the first quarter of 2025. The company earlier anticipated outperforming the market, driven by accelerating demand in Electrophysiology (EP) following the approval of FARAWAVE NAV as well as sustained strength in key global franchises.

Asia-Pacific is expected to have performed well, banking on Japan and China. Japan sales have been buoyed by the continued adoption of AGENT DCB, Rezum, and WATCHMAN FLEX Pro. China sales are forecasted to grow in the mid-teens in 2025 despite DBP pricing headwinds, supported by the expanding role of FARAPULSE and solid commercial execution.

However, profitability is expected to have remained sluggish amid a challenging supply environment in limited geographies. Further, the business is expected to have faced the hurdle of tariff related complications, surging labor and raw material costs, as well as healthcare staffing shortages, which might have weighed on the bottom line in the first quarter.

The WATCHMAN subsegment within the Cardiovascular division is expected to have registered continued strong growth in the first quarter, following 20% growth in both the fourth quarter and full-year 2024. The momentum is expected to have been driven by a rise in concomitant procedures, positive clinical data from the OPTION trial, and hospital demand for efficient and safe solutions. The company earlier noted that with the market growing around 20% annually and more data expected from the CHAMPION trial, WATCHMAN is set for a strong start to 2025.

The consensus estimate for WATCHMAN revenues is pegged at $408.6 million for the first quarter, indicating a 16.5% improvement from the year-ago period.

The Interventional Cardiology business, following 11% full-year growth in 2024, is likely to have witnessed steady growth in the first quarter of 2025, supported by strong demand for imaging, complex PCI and AGENT DCB. The planned acquisition of Bolt Medical is also set to boost the portfolio, adding intravascular lithotripsy technology for coronary and peripheral artery disease.

The consensus estimate for Interventional Cardiology revenues of $678 million projects a 3.9% improvement in the first quarter.

Within the Peripheral Interventions business, first-quarter sales are expected to have been driven by the strong performance of the drug-eluting franchise, supported by ongoing clinical evidence and the company’s category leadership portfolio.

Peripheral Intervention revenues are estimated to be $659 million, implying an improvement of 15% in the first quarter.

Interventional Oncology is expected to have gained from strong momentum in the company’s advanced broad offering across cancer therapies, TheraSphere and ICEfx, as well as the robust set of embolization access and delivery tools.

Within Urology/ Pelvic Health, Stone Management, Prostate Health and Pelvic Health franchises are expected to have recorded strong growth, banking on strong performances of LithoVue, SpaceOAR and Rezum in key countries.

Within Endoscopy, the company is expected to report strong momentum in endoluminal surgery, single-use imaging and the AXIOS platform. Recent milestones, including Japan’s approval of AXIOS for gall bladder drainage and positive reimbursement progress for the ESG weight loss procedure, are expected to have provided further momentum in the first quarter.

Within Neuromodulation, the company is likely to have registered balanced growth across the Vercise Genus portfolio and the innovative Image Guided Programming, which is designed to improve the precision and efficiency of the deep brain stimulation procedure.

BSX's Strong Price Performance

Driven by balanced segmental performance and continued market expansion, BSX stock has had a dream run on the bourses, gaining a strong 41.6% in the past year. Shares of BSX have outperformed its industry, the Medical sector and the benchmark in a year’s time as well as well as fellow industry players like Abbott ABT and Medtronic MDT.

One-Year Price Comparison

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Earlier this week, Abbott reported first-quarter 2025 adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate by 1.9%. The adjusted figure improved 11.2% from the prior-year quarter’s level.

Medtronic on the other hand is slated to report fiscal third-quarter 2025 earnings on May 21, 2025. The Zacks Consensus Estimate for Medtronic’s earnings is pegged at $1.58, implying an 8.2% improvement from the year-ago period.

Expensive Valuation for BSX

BSX stock is not so cheap as its Value Score of D suggests a stretched valuation at this moment.

In terms of the forward 12-month Price/Earnings ratio, Boston Scientific’s shares are trading at 32.19, higher than the broader industry’s 20.45.

Among the company’s peers, while Medtronic currently trades at a forward 12-month P/E of 14.22X, Abbott trades at 20.45X.

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Wall Street Average Target Price for BSX Suggests Little Upside

Based on short-term price targets offered by 28 analysts, the Wall Street average price target is $118.29 per share, suggesting 24.2% upside from current levels.

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BSX Stock Worth Holding Now

Despite macroeconomic concerns, currency headwinds and related cost inflation, Boston Scientific is seeing strength across target markets. Strong worldwide demand for its core businesses is impressive. We expect the company to significantly reduce the cost of manufacturing products and improve the margin scenario going forward, benefiting from the easing monetary policy. Given BSX’s impressive rally, the stock has all the potential to be in investors’ kitty now.

However, its stretched valuation suggests that investors may be paying a higher price relative to the company's expected earnings growth. While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains, providing a better entry point.

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This article originally published on Zacks Investment Research (zacks.com).

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