The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how medical devices & supplies - diversified stocks fared in Q4, starting with Baxter (NYSE:BAX).
The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency.
Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers.
The 5 medical devices & supplies - diversified stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
Baxter (NYSE:BAX)
Founded in 1931, Baxter International (NYSE:BAX) develops, manufactures, and sells a range of medical products and therapies, focusing on critical care, renal care, hospital products, and advanced surgical solutions.Baxter reported revenues of $2.75 billion, flat year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates.
“Our 2024 performance and related strategic milestones reflect Baxter’s growing momentum in our pursuit of enhanced value for patients, healthcare providers, customers and shareholders,” said Brent Shafer, chair and interim chief executive officer.
Baxter scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 13.8% since reporting and currently trades at $35.06.
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Best Q4: Boston Scientific (NYSE:BSX)
Founded in 1979, Boston Scientific (NYSE:BSX) is a medical device company that designs, manufactures, and sells a wide range of technologies used in minimally-invasive medical procedures.Boston Scientific reported revenues of $4.56 billion, up 22.4% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with a solid beat of analysts’ organic revenue estimates.
Boston Scientific pulled off the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $104.50.
Abbott Laboratories (NYSE:ABT)
Founded in 1888 as a small pharmaceutical company, Abbott Laboratories (NYSE:ABT) develops and sells a wide range of nutrition products, medical devices, and branded pharmaceuticals.Abbott Laboratories reported revenues of $10.97 billion, up 7.2% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted organic revenue in line with analysts’ estimates.
Abbott Laboratories delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 15.1% since the results and currently trades at $134.42.
Stryker (NYSE:SYK)
Founded in 1941 as a specialty medical products business, Stryker Corporation today designs and sells a wide range of medical devices, equipment, and technology across areas like orthopedics (bones, joints, ligaments, etc.), surgical equipment, and spine.Stryker reported revenues of $6.44 billion, up 10.7% year on year. This print topped analysts’ expectations by 1.4%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 1.8% since reporting and currently trades at $388.04.
Neogen (NASDAQ:NEOG)
Founded in 1982, Neogen (NASDAQ:NEOG) provides a broad range of products and services to ensure food safety and animal health, including diagnostic tests, food safety equipment, and veterinary pharmaceuticals.Neogen reported revenues of $231.3 million, flat year on year. This number surpassed analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also produced a decent beat of analysts’ EPS estimates.
Neogen had the slowest revenue growth among its peers. The stock is down 22.2% since reporting and currently trades at $10.18.
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This content was originally published on Stock Story
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