Boston Scientific Reports Mixed Q3 Results, Provides Guidance

Medical devices firm Boston Scientific Corp. (BSX) has reported mixed results for the third quarter of 2021, as the company surpassed earnings but missed revenue expectations. Shares of the company lost 1.3% on Wednesday. They slipped another 0.2% in the extended trading session to end the day at $43.66.

The Massachusetts-based company manufactures medical devices used in interventional medical specialties, including interventional radiology, interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention, electrophysiology, cardiac surgery, vascular surgery, endoscopy, oncology, urology and gynecology.

Adjusted earnings increased to $0.41 per share from $0.37 per share last year. The figure stood above the Street’s estimate of $0.40 per share. The company had expected to report earnings in the range of $0.39 per share to $0.41 per share.

Net sales grew 10.3% year-over-year to $2.93 billion but missed analysts’ expectations of $2.97 billion. (See Insiders’ Hot Stocks on TipRanks)

The MedSurg segment’s net sales rose 11.2% to $917 million; net sales of the Rhythm and Neuro segment totaled 819 million, up 8.2%; and the Cardiovascular segment’s net sales climbed 19.4% to $1.2 billion.

The Chairman and CEO of Boston Scientific, Mike Mahoney, said, “Despite some softness this quarter, including the ongoing impact of the COVID-19 pandemic, we’re confident that we will achieve our growth goals as the pandemic wanes.”

Meanwhile, the company expects fourth-quarter net sales to grow 13% to 17% year-over-year and adjusted EPS to range from $0.43 to $0.45.

For 2021, it anticipates net sales growth of 19% to 20% and adjusted EPS to lie between $1.60 and $1.62.

Following the release of the third-quarter results, Piper Sandler (PIPR) analyst Matthew O’Brien maintained a Buy rating on the stock with a price target of $51 (16.6% upside potential).

The analyst said, “The real item for review is the underlying health of the business, which, based on solid results in several franchises, appears good, with several key products trending in the right direction.”

Overall, the stock has a Moderate Buy consensus rating based on 11 Buys and 4 Holds. The average Boston Scientific price target of $63.04 implies 44.2% upside potential. Shares have gained 28.4% over the past year.

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