Boston Scientific Earnings: New Product Cycles and Medical Utilization Drove Strong Results

Narrow-moat Boston Scientific’s second-quarter results demonstrated similar strength as the double-digit growth seen in the previous quarter, and we plan to modestly raise our fair value estimate on slightly higher 2023 and 2024 projections. Boston delivered top-line growth in the double digits again, with quarterly operational revenue growth of 12% fueled by endoscopy, cardiology, and peripheral intervention. Boston kept a tight rein on expenses in the second quarter, with manufacturing and R&D expense falling slightly short of our expectations, but this was offset by slightly higher-than-expected SG&A.