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1. Company Snapshot

1.a. Company Description

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular.The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems.


It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems.In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies.Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer.


The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

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1.b. Last Insights on BSX

Boston Scientific Corporation's recent performance was driven by the launch of new products, which have enhanced sales growth and widened profit margins. The company's cardiology and EP segments have fueled major gains, contributing to its strong Q1 results. Additionally, Boston Scientific's global expansion efforts and MedSurg growth have boosted Q2 momentum. The company has also raised its 2025 financial outlook, citing a strong Q1 performance. Furthermore, Boston Scientific has consistently shown a positive return on the day after earnings announcements, with a 60% success rate over the past five years.

1.c. Company Highlights

2. Boston Scientific's Q3 2025 Earnings: Strong Growth and Upgraded Guidance

Boston Scientific reported a strong third quarter in 2025, with total company operational sales growing 19% and organic sales growing 15%. The company's adjusted EPS was $0.75, up 19% from the prior year, beating analyst estimates of $0.712. The cardiovascular segment saw significant growth, driven by WATCHMAN sales, which grew 35%, and electrophysiology sales, which grew 63%. The company's guidance for full-year 2025 organic revenue growth has been upgraded to approximately 15.5%, and adjusted EPS growth is expected to be 20-21%, with a range of $3.02 to $3.04.

Publication Date: Oct -24

📋 Highlights
  • Q3 2025 Operational Growth:: Total operational sales rose 19% (+15% organic), with adjusted EPS at $0.75 (+19% YoY).
  • Cardiovascular Segment Growth:: WATCHMAN sales surged 35%, and electrophysiology sales jumped 63%.
  • Full-Year 2025 Guidance:: Organic revenue growth of ~15.5% and adjusted EPS of $3.02–$3.04 (+20–21% YoY).
  • WATCHMAN Market Potential:: Expected 20% CAGR driven by 25% concomitant procedure adoption and underserved patient expansion.
  • Margin Expansion:: Operating margins to expand 50 bps annually from mix, SG&A leverage, and R&D efficiency despite $100M tariff headwind.

Segment Performance

The cardiovascular segment was a key driver of growth, with WATCHMAN and electrophysiology sales showing significant increases. The company expects WATCHMAN procedures to grow with 25% of procedures being done concomitant. The electrophysiology business is expected to decelerate due to its large size and competitive landscape. Other businesses, such as Neuromodulation and Endoscopy, are expected to drive growth, with Endoscopy expected to see strong performance in 2026 due to new product launches and alliances.

Margin Expansion

The company expects to expand operating margins by 50 basis points annually, driven by mix, leverage in SG&A, and investment in R&D. Gross margins are expected to improve year-over-year, despite a $100 million tariff headwind. Margins expanded 100 basis points in fiscal '25 despite tariff headwinds, demonstrating the company's ability to manage costs and improve profitability.

Valuation and Growth Prospects

With a P/E Ratio of 59.97 and an EV/EBITDA of 34.35, Boston Scientific's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 11.3%, which is slightly lower than this year's growth rate. The company's long-range financial goals include 10%+ average organic revenue growth from 2026 to 2028, 50 basis points of annual adjusted operating margin expansion, and leveraged double-digit adjusted earnings per share growth. The acquisition of Nalu Medical is expected to drive growth in the neuromodulation and pain business, and the company's pipeline of new products, including EMPOWER and Denali, is expected to drive growth in the CRM business.

Pipeline and New Products

The company's pipeline of new products is expected to drive growth in various businesses. The AGENT drug-coated balloon is seeing strong growth, with potential to be a $1 billion product as the indication expands. The FARAPOINT and FARAWAVE products are expected to drive growth in PFA penetration, particularly in persistent patients. The company's ecosystem, including FARAPULSE, is well-positioned to win in the AF ablation market, particularly with the potential for 40% of AF ablations in the US to be moved to ASCs.

3. NewsRoom

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Boston Scientific Corporation (NYSE:BSX) Receives Consensus Recommendation of “Buy” from Analysts

Dec -04

Source: defenseworld.net

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Boston Scientific Corporation (BSX) Presents at Citi Annual Global Healthcare Conference 2025 Prepared Remarks Transcript

Dec -02

Source: seekingalpha.com

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M&A Strategy Strengthens Boston Scientific's Growth Prospects

Dec -02

Source: zacks.com

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Alcosta Capital Management Inc. Invests $5.20 Million in Boston Scientific Corporation $BSX

Nov -28

Source: defenseworld.net

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Boston Scientific's Margins Strengthen in Q3: What's Driving It?

Nov -25

Source: zacks.com

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Aviso Financial Inc. Reduces Stock Position in Boston Scientific Corporation $BSX

Nov -25

Source: defenseworld.net

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Boston Scientific Corporation $BSX Position Reduced by Associated Banc Corp

Nov -25

Source: defenseworld.net

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BSX vs. EW: Which Heart Device Stock Is the Smarter Investment Now?

Nov -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.44%)

6. Segments

Cardiovascular (Incl. Rhythm)

Expected Growth: 7.3%

Boston Scientific Corporation's Cardiovascular and Rhythm Management segment is expected to grow due to increasing adoption of minimally invasive treatments and rising demand for cardiac resynchronization therapy devices. Additionally, the company's portfolio of electrophysiology products will drive growth.

Med Surg

Expected Growth: 7.7%

Boston Scientific's medical and surgical products are expected to grow driven by increasing demand for minimally invasive procedures, an aging population, and a growing need for healthcare cost containment.

7. Detailed Products

Cardiac Rhythm Management (CRM) Devices

Devices that help regulate the heartbeat, including pacemakers, implantable cardioverter defibrillators (ICDs), and cardiac resynchronization therapy (CRT) devices.

Electrophysiology (EP) Products

Devices and catheters used to diagnose and treat abnormal heart rhythms, including ablation catheters and diagnostic catheters.

Endoscopy Products

Devices and instruments used to visualize and treat conditions in the digestive tract, including endoscopes, balloons, and snares.

Interventional Cardiology Products

Devices and systems used to treat coronary artery disease, including angioplasty balloons, stents, and guidewires.

Neuromodulation Products

Devices and systems used to treat chronic pain, movement disorders, and other neurological conditions, including spinal cord stimulators and deep brain stimulators.

Peripheral Interventions Products

Devices and systems used to treat peripheral artery disease, including angioplasty balloons, stents, and atherectomy systems.

Urology and Pelvic Health Products

Devices and systems used to treat urological and pelvic health conditions, including urinary incontinence, pelvic organ prolapse, and kidney stones.

8. Boston Scientific Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Boston Scientific Corporation faces moderate threat from substitutes, as patients may opt for alternative treatments or products from other companies, but the company's strong brand reputation and product offerings mitigate this threat to some extent.

Bargaining Power Of Customers

Boston Scientific Corporation has a diverse customer base, which reduces the bargaining power of individual customers, and the company's strong relationships with hospitals and healthcare providers further limit customer bargaining power.

Bargaining Power Of Suppliers

Boston Scientific Corporation relies on a network of suppliers for raw materials and components, and while the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The medical device industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise, making it difficult for new entrants to challenge Boston Scientific Corporation's market position.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players, including Medtronic, Abbott, and Johnson & Johnson, competing fiercely for market share, which increases the intensity of rivalry for Boston Scientific Corporation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.99%
Debt Cost 3.95%
Equity Weight 67.01%
Equity Cost 7.79%
WACC 6.52%
Leverage 49.23%

11. Quality Control: Boston Scientific Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AbbVie

A-Score: 6.6/10

Value: 3.0

Growth: 4.7

Quality: 7.5

Yield: 7.0

Momentum: 8.5

Volatility: 9.0

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McKesson

A-Score: 6.2/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 9.7

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Abbott

A-Score: 6.2/10

Value: 2.7

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.0

Volatility: 9.7

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Stryker

A-Score: 5.3/10

Value: 1.8

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

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Boston Scientific

A-Score: 5.1/10

Value: 0.9

Growth: 6.6

Quality: 6.7

Yield: 0.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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DexCom

A-Score: 4.1/10

Value: 1.0

Growth: 9.1

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.52$

Current Price

97.52$

Potential

-0.00%

Expected Cash-Flows