Boston Scientific (BSX) Down 0.9% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Boston Scientific (BSX). Shares have lost about 0.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boston Scientific due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Boston Scientific Corporation before we dive into how investors and analysts have reacted as of late.

Boston Scientific Q2 Earnings Beat Estimates, Margins Contract

Boston Scientific posted second-quarter 2025 adjusted earnings per share of 75 cents, up 20.9% from the year-ago figure. The figure beat the Zacks Consensus Estimate by 4.2% and also exceeded the company’s adjusted earnings per share guidance range of 71-73 cents per share.

The quarter’s adjustments included certain amortization expenses, goodwill and other intangible asset impairment charges and acquisition/divestitures-related net charges, among others. Reported earnings per share for the second quarter was 53 cents, reflecting a 141% jump from the year-ago quarter’s 22 cents.

Q2 Revenue Details

Revenues in the second quarter totaled $5.06 billion, up 22.8% year over year on a reported basis and 21.6% on an operational basis (at a constant exchange rate or CER). Organic growth, adjusted for foreign currency fluctuations and certain recent acquisitions and divestments, was 17.4%.

The top line surpassed the Zacks Consensus Estimate by 2.3%. and exceeded the company’s Q2 revenue forecast of 17%-19%.

Q2 Revenues by Regions

In the second quarter, revenues rose 30.7% in the United States on a reported basis (same operationally).

Reported revenues rose 6.8% in the Europe, Middle East and Africa (EMEA) region (up 1.8% operationally) and 18% in the Asia Pacific zone (up 15.4% operationally).

Reported revenues increased 4% in Latin America and Canada (up 8.9% operationally). Reported revenue growth in emerging markets was 11.6% (up 12.1% operationally).

Q2 Revenues by Segments

Boston Scientific recently reorganized its operational structure and aggregated its core businesses into two reportable segments — MedSurg and Cardiovascular. Both these generate revenues from the sale of Medical Devices.

MedSurg

MedSurg revenues in the second quarter were $1.72 billion, up 15.7% year over year on a reported basis (up 7% organically).

Within this, the Endoscopy unit generated revenues of $737 million, up 7.8% organically.

Urology revenues were $679 million, reflecting organic growth of 6.3%.

The Neuromodulation business reported $303 million in revenues, highlighting a 6.6% rise organically year over year.

Cardiovascular

The company generates maximum revenues from this segment. Revenues in the second quarter came in at $3.35 billion, up 26.8% (reported) and 23.2% (organic) year over year.

Within this, Cardiology business sales totaled $2.65 billion (up 27.9% year over year organically) in the second quarter.

The Peripheral Interventions unit generated $698 million in sales, up 7%.

Margin Performance in Q2

The gross margin in the second quarter contracted 152 basis points (bps) year over year to 67.7%. There was a 28.9% rise in the cost of products sold to $1.63 billion in the reported quarter.

Selling, general and administrative expenses rose 18.7% to $1.72 billion. Research and development expenses rose 37.3% to $526 million. Royalty expenses of $14 million increased 55.6% year over year. The adjusted operating margin contracted 148 bps to 23.1% in the reported quarter.

BSX Updates 2025 Outlook, Shares Q3 View

For 2025, Boston Scientific now anticipates net sales to grow approximately 18-19% (compared with the earlier guidance of 15-17%) on a reported basis and 14-15% on an organic basis (earlier 12-14%). The Zacks Consensus Estimate is currently pegged at $19.50 billion, indicating a 16.4% rise from the 2024 reported figure.

Full-year adjusted earnings per share is expected in the range of $2.95-$2.99 (previously $2.87-$2.94). The Zacks Consensus Estimate for the same is currently pegged at $2.91.

For the third quarter of 2025, revenue growth is projected in the range of approximately 17-19% on a reported basis (up 12-14% organically). Adjusted earnings are expected in the range of 70-72 cents per share.

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 70 cents per share and $4.85 billion, respectively.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Boston Scientific has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Boston Scientific has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Boston Scientific belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT), has gained 5.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Abbott reported revenues of $11.14 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $1.26 for the same period compares with $1.14 a year ago.

For the current quarter, Abbott is expected to post earnings of $1.30 per share, indicating a change of +7.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Abbott has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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

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