Bear of the Day: Boston Scientific (BSX)

The reported revenue compares to the Zacks Consensus Estimate of $5.38 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.

In response to the conference call and management's lowered guidance, analysts notched down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.

Since its 2025 highs near $110, BSX has been in a steady bear market, making new 52-week lows above $42 last month -- despite nearly doubling revenues in the last 5 years to cross $21 billion.

The stock may soon sort out a bottom after this report given other strong metrics under the hood of the business which continues to grow the top and bottom lines at mid-single digits. 

Key Metrics Versus Estimates

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Boston Scientific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Geographic Revenue- Rest of the World: $2.02 billion compared to the $1.98 billion average estimate based on two analysts. The reported number represents a change of +9.8% year over year.

Geographic Revenue- U.S.: $3.43 billion versus $3.39 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.

Net Sales- MedSurg- Worldwide: $1.82 billion compared to the $1.8 billion average estimate based on five analysts. The reported number represents a change of +5.9% year over year.

Net Sales- Cardiovascular- Worldwide: $3.62 billion versus $3.6 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.

Net Sales- MedSurg- Neuromodulation- Worldwide: $341 million versus $335.33 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.

Net Sales- MedSurg- Endoscopy- Worldwide: $793 million versus $774.1 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.

Net Sales- MedSurg- Urology- Worldwide: $684 million compared to the $694.74 million average estimate based on four analysts. The reported number represents a change of +1.2% year over year.

Net Sales- Cardiovascular- Cardiac Rhythm Management (CRM)- Worldwide: $585 million compared to the $601.79 million average estimate based on three analysts. The reported number represents a change of -0.9% year over year.

Net Sales- Cardiovascular- Interventional Cardiology & Vascular Therapies- Worldwide: $1.33 billion compared to the $1.26 billion average estimate based on three analysts. The reported number represents a change of +82.4% year over year.

Net Sales- Cardiovascular- Watchman- Worldwide: $507 million compared to the $535.88 million average estimate based on three analysts. The reported number represents a change of +4.3% year over year.

Net Sales- Cardiovascular- Electrophysiology- Worldwide: $916 million versus $923.15 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.

Boston Scientific targets $500M run-rate savings and cites seven major launches by 2028. For more on that and reactions to the quarter, see this article: BSX Q2 Earnings Call Highlights WATCHMAN and EP Pressure

Bottom line: Investors may be looking for the next innovation or acquisition from BSX that could get growth closer to double-digits. Until then, accumulating shares under $50 and near 3X sales might offer long-term upside given these solid MedTech segments.

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

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