Boston Scientific Reports Strong Q4 Results

Boston Scientific Corporation (NYSE: BSX) has reported better-than-expected results for the fourth quarter of 2021. The company engages in the manufacturing of medical devices and products that are used in various interventional medical specialties.

Adjusted earnings came in at $0.45 per share, up 95.7% from the same quarter last year. Also, the figure surpassed analysts’ estimates of $0.44 per share. Revenues rose 15.4% to $3.13 billion and came above analysts’ expectations of $3.11 billion.

Segment-wise, revenues of MedSurg and Cardiovascular units grew 12.1% and 25.3%, respectively. Rhythm and Neuro witnessed sales growth of 11.8%.

For 2021, the company reported net sales of $11.9 billion, up 19.9% on a reported basis. Also, adjusted EPS came in at $1.63, compared to $0.96 last year.

The Chairman and CEO of Boston Scientific, Mike Mahoney, said, “I’m excited about the capabilities we’ve built, and I remain confident in our ability to execute in 2022 and against our long-range plans as we continue delivering meaningful innovations for patients around the world.”

Outlook

The company anticipates first-quarter 2022 adjusted earnings in the range of $0.38 to $0.40 per share, while revenue growth is expected to be in the range of 5% to 8%.

For 2022, revenue growth is anticipated to be in the range of 6% to 8%, while adjusted earnings are expected to be between $1.73 and $1.79.

Stock Rating

On February 2, BTIG analyst Marie Thibault reiterated a Buy rating on Boston Scientific with a price target of $52 (25.5% upside potential from current levels).

Thibault said, “We reduce our 2022 revenue forecast, with cut largely coming from Q1 estimates. We continue to expect areas with more elective procedures, like Neuro modular, Endoscopy, and Urology/Pelvic Health, to face more COVID headwinds in the early part of the year. We continue to model strong growth for Electrophysiology and WATCHMAN FLX. This revenue reduction flows into our 2023 forecast, though we continue to model 8.2% y/y growth for that year.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average Boston Scientific price target of $50.20 implies 21.1% upside potential to current levels.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in Boston Scientific is currently Positive, as the cumulative change in holdings across all 16 hedge funds that were active in the last quarter was an increase of 1.2 million shares.

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