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Hawk’s Nest

Boston Scientific (BSX) Flows Point to Positive Earnings Reaction

by | Jul 25, 2021

Boston Scientific (BSX) reporting earnings on Tuesday before the open with the Street looking for $0.37 on $2.94B, a 46.7% increase Y/Y. BSX has a strong history, bullish options flow, and strong chart setting up for a potential jump higher after reporting. Shares have closed higher in five of the last seven including the last two with an average closing move higher of 2.5% and a max move of 5.49%. The current implied move is 4%. The $61.88B company trades 24X earnings, 6.11X sales, and 30.7X cash. BSX should benefit from the increase in vaccinations as more people get back into doctors’ offices and last quarter posted growth across all of their business segments for the first time since 2019. The company should continue to see strength in endoscopy due to new product launches while cardiac will benefit from a bigger replacement cycle into 2022. Goldman positive on 7/14 seeing a beat-and-raise quarter as they see strength around cardiology and GI helping lift their longer-term outlook. Barclays positive in May as they should benefit from the return in elective surgeries.