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Business Wire
14 hours ago
- Business
- Business Wire
Butterfield Reports Second Quarter 2025 Results
HAMILTON, Bermuda--(BUSINESS WIRE)--The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (BSX: NYSE: NTB) today announced financial results for the quarter ended June 30, 2025. Net income for the second quarter of 2025 was $53.3 million, or $1.25 per diluted common share, compared to net income of $53.8 million, or $1.23 per diluted common share, for the previous quarter and $50.6 million, or $1.09 per diluted common share, for the second quarter of 2024. Core net income 1 for the second quarter of 2025 was $53.7 million, or $1.26 per diluted common share, compared to $56.7 million, or $1.30 per diluted common share, for the previous quarter and $51.4 million, or $1.11 per diluted common share, for the second quarter of 2024. The return on average common equity for the second quarter of 2025 was 20.3% compared to 20.9% for the previous quarter and 20.7% for the second quarter of 2024. The core return on average tangible common equity 1 for the second quarter of 2025 was 22.3%, compared to 24.2% for the previous quarter and 23.3% for the second quarter of 2024. The efficiency ratio for the second quarter of 2025 was 61.3%, compared to 61.8% for the previous quarter and 62.4% for the second quarter of 2024. The core efficiency ratio 1 for the second quarter of 2025 was 61.1% compared with 59.8% in the previous quarter and 61.8% for the second quarter of 2024. The Bank also announced the appointment of a new Independent Director, Andrew Henton, a UK and offshore financial services sector expert, with longstanding experience in the Channel Islands. Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, 'This strong second quarter performance underscores the consistency of our high risk-adjusted returns, supported by disciplined risk management and high-quality client relationships. Butterfield's proven business model and sustained through-cycle profitability gives our Board the confidence to increase the quarterly cash dividend rate by 14% and authorize a new share repurchase program. As we rebalance our capital return strategy, we continue to evaluate selective, fee-based acquisition opportunities. "On behalf of the Board of Directors, I am pleased to welcome Andrew Henton to the Group Board, and thank him for his continuing contribution to Butterfield's subsidiary banking business in the Channel Islands, where he also currently serves as a Director. Andrew brings significant experience in governance, private banking, private equity and investment banking. I look forward to working with Andrew and am confident that he will help to further Butterfield's strategic growth and value creation." Net income and core net income 1 were down in the second quarter of 2025 versus the prior quarter. Net income was down in the second quarter of 2025 compared to the prior quarter, primarily due to a volume driven decrease in foreign exchange revenue and higher allowance for credit losses offset by decreases in non-interest expenses due to lower non-income tax and other non-interest expenses. Core net income 1 was down in the second quarter of 2025 primarily due to a volume driven decrease in foreign exchange revenue, higher allowance for credit losses and higher salaries and other employee benefits. Net interest income ('NII') for the second quarter of 2025 was $89.4 million, a marginal increase over NII of $89.3 million in the previous quarter and $2.0 million higher compared to $87.4 million in the second quarter of 2024. NII was higher during the second quarter of 2025 compared to the second quarter of 2024, primarily due to a lower cost of deposits from prior quarters' central bank rate cuts, higher yield on investments offset by lower yields on loan and treasury assets following the aforementioned central bank rate cuts. Net interest margin ('NIM') for the second quarter of 2025 was 2.64%, a decrease of 6 basis points from the previous quarter at 2.70% and consistent with 2.64% in the second quarter of 2024. NIM in the second quarter of 2025 decreased compared to the prior quarter primarily due to lower treasury yields and the early redemption of the Bank's subordinated debt, which resulted in the accelerated amortization of the related unamortized issuance costs of $1.2 million (2 basis points impact on NIM). Non-interest income for the second quarter of 2025 was $57.0 million, a decrease of $1.4 million from $58.4 million in the previous quarter and $1.4 million higher than $55.6 million in the second quarter of 2024. The decrease in the second quarter of 2025 compared to the prior quarter was due to lower foreign exchange volumes and lower custody and other administrative fees partially offset by higher trust revenue and other non-interest income. Non-interest income in the second quarter of 2025 was higher than the second quarter of 2024 primarily due to higher banking fees from both card volume and incentive programs, higher trust income, increases in asset management fees, and offset by lower foreign exchange volume. Non-interest expenses were $91.8 million in the second quarter of 2025, compared to $93.2 million in the previous quarter and $91.1 million in the second quarter of 2024. Core non-interest expenses 1 of $91.4 million in the second quarter of 2025 were higher compared to the $90.3 million incurred in the previous quarter and the $90.3 million in the second quarter of 2024. Core non-interest expenses 1 in the second quarter of 2025 were higher compared to the prior quarter due to increased salary and other employee benefits offset by lower non-income taxes and other non-interest expenses. Core non-interest expenses 1 in the second quarter of 2025 were higher compared to the second quarter of 2024, due to increased salary and other employee benefits, and increased property maintenance cost offset by lower technology and communications cost and professional and outside services cost. Included in salaries and other employee benefits are non-core expenses of $0.4 million which relates to costs arising from a group-wide voluntary early retirement and redundancy programs executed in the first and second quarter of 2025, respectively. Period end deposit balances were $12.8 billion, an increase of 0.7% compared to $12.7 billion at December 31, 2024, primarily due to deposit increases in the Channel Islands and UK segment driven by a stronger Pound Sterling versus the US dollar. Average deposits were $12.7 billion in the quarter ended June 30, 2025, which is higher than the $12.5 billion in the prior quarter. Tangible book value per share at the end of the second quarter of 2025 was $23.77 per share, higher than $22.94 per share at the end of the prior quarter and an increase over the $20.03 at the end of the second quarter of 2024. The Board increased the quarterly cash dividend rate by 14% or $0.06 per common share to $0.50 per common share to be paid on August 25, 2025 to shareholders of record on August 11, 2025. During the second quarter of 2025, Butterfield repurchased 1.1 million common shares under the Bank's existing share repurchase program. On July 28, 2025, the Board approved a new share repurchase program authorizing the purchase of up to 1.5 million common shares through to December 31, 2025. Effective January 1, 2025, the Bank has adopted the Basel Committee on Banking Supervision's ("BCBS") revised standardized approach for credit risk framework as required by the Bermuda Monetary Authority ("BMA"). Comparatives were prepared under the prior credit risk framework. The current total regulatory capital ratio as at June 30, 2025 was 26.2%, compared to 25.8% as at December 31, 2024. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank. About Andrew Henton: Andrew Henton brings more than three decades of wide-ranging experience and business-building success across the financial services sector in the U.K. and offshore. Initially trained as an accountant, Mr. Henton gained exposure to international investment banking with HSBC and private equity investing with Baring Private Equity Partners, where he launched and then managed a growth fund focused on middle-market companies. From 2001 to 2011, Mr. Henton worked for Close Brothers Group, where he led the transformation of a disparate collection of underperforming offshore financial businesses into a profitable, integrated wealth management entity, the Close Private Bank Group of Companies. After the parent company sold the private bank group to Kleinwort Benson, Mr. Henton stayed on in Guernsey and has rounded out his career by coupling investments in smaller privately owned companies with serving as a professional non-executive director for a select number of Guernsey-based financial institutions. ANALYSIS AND DISCUSSION OF SECOND QUARTER RESULTS Income statement Three months ended (Unaudited) (in $ millions) June 30, 2025 March 31, 2025 June 30, 2024 Non-interest income 57.0 58.4 55.6 Net interest income before provision for credit losses 89.4 89.3 87.4 Total net revenue before provision for credit losses and other gains (losses) 146.4 147.8 143.1 Provision for credit (losses) recoveries (0.2 ) 0.4 (0.5 ) Total other gains (losses) 0.1 — 0.1 Total net revenue 146.3 148.2 142.7 Non-interest expenses (91.8 ) (93.2 ) (91.1 ) Total net income before taxes 54.5 54.9 51.5 Income tax benefit (expense) (1.2 ) (1.2 ) (0.9 ) Net income 53.3 53.8 50.6 Net earnings per share Basic 1.28 1.26 1.11 Diluted 1.25 1.23 1.09 Per diluted share impact of other non-core items 1 0.01 0.07 0.02 Core earnings per share on a fully diluted basis 1 1.26 1.30 1.11 Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares) 42,653 43,592 46,298 Key financial ratios Return on common equity 20.3 % 20.9 % 20.7 % Core return on average tangible common equity 1 22.3 % 24.2 % 23.3 % Return on average assets 1.5 % 1.6 % 1.5 % Net interest margin 2.64 % 2.70 % 2.64 % Core efficiency ratio 1 61.1 % 59.8 % 61.8 % Expand (1) See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures. Expand Balance Sheet As at (in $ millions) June 30, 2025 December 31, 2024 Cash and cash equivalents 1,450 1,998 Securities purchased under agreements to resell 1,135 1,205 Short-term investments 1,112 580 Investments in securities 5,458 5,513 Loans, net of allowance for credit losses 4,578 4,474 Premises, equipment and computer software, net 159 154 Goodwill and intangibles, net 92 90 Accrued interest and other assets 201 218 Total assets 14,185 14,231 Total deposits 12,838 12,746 Long-term debt — 99 Securities sold under agreements to repurchase — 93 Accrued interest and other liabilities 278 273 Total liabilities 13,116 13,211 Common shareholders' equity 1,069 1,021 Total shareholders' equity 1,069 1,021 Total liabilities and shareholders' equity 14,185 14,231 Key Balance Sheet Ratios: June 30, 2025 December 31, 2024 Common equity tier 1 capital ratio 2 26.0 % 23.5 % Tier 1 capital ratio 2 26.0 % 23.5 % Total capital ratio 2 26.2 % 25.8 % Leverage ratio 7.3 % 7.3 % Risk-Weighted Assets (in $ millions) 4,063 4,539 Risk-Weighted Assets / total assets 28.6 % 31.9 % Tangible common equity ratio 6.9 % 6.6 % Book value per common share (in $) 26.01 23.78 Tangible book value per share (in $) 23.77 21.70 Non-accrual loans/gross loans 2.0 % 1.7 % Non-performing assets/total assets 0.8 % 1.1 % Allowance for credit losses/total loans 0.6 % 0.6 % Expand (2) Effective January 1, 2025, the Bank has adopted the BCBS's revised standardized approach for credit risk framework as required by the BMA. Comparatives were prepared under the prior credit risk framework. Expand QUARTER ENDED JUNE 30, 2025 COMPARED WITH THE QUARTER ENDED MARCH 31, 2025 Net Income Net income for the quarter ended June 30, 2025 was $53.3 million, down from $53.8 million in the prior quarter. The change in net income during the quarter ended June 30, 2025 compared to the previous quarter is attributable to the following: $1.4 million decrease in non-interest income driven by (i) $0.4 million decrease in banking fees due to lower merchant and international money transfer volumes, partially offset by increased card volumes; (ii) $1.7 million decrease in foreign exchange revenue driven by volume; and (iii) $0.4 million decrease in custody and other administration fees due to lower transaction volumes and assets under custody. This was partially offset by a $0.7 million increase in trust revenue due to annual fee increases, repricing of acquired business relationships, new business, an increase in special fees, and a $0.5 million increase in other non-interest income due to incentives received for new product development; $0.6 million increase in provision for credit losses as the prior quarter included a net release; and $1.5 million decrease in non-interest expenses driven by (i) $0.6 million decrease in payroll taxes related to the annual vesting of share compensation occurring in the prior quarter and (ii) $0.7 million decrease in other expenses driven by the provision for a potential legal settlement recognized in the prior quarter. Non-Core Items 1 Non-core items resulted in expenses, net of gains, of $0.4 million for the second quarter of 2025. Non-core items for the quarter relate mainly to costs recognized related to the group-wide voluntary early retirement and redundancy programs which was executed in Q1 2025 and Q2 2025, respectively. Management does not believe that comparative period expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business. BALANCE SHEET COMMENTARY AT JUNE 30, 2025 COMPARED WITH DECEMBER 31, 2024 Total Assets Total assets of the Bank were $14.2 billion at June 30, 2025, a decrease of $46.4 million from December 31, 2024. The Bank maintained a highly liquid position at June 30, 2025, with $9.2 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 64.5% of total assets, compared with 65.3% at December 31, 2024. Loans Receivable The loan portfolio totaled $4.6 billion at June 30, 2025, a $0.1 billion decrease compared to December 31, 2024 balances. The allowance for credit losses at June 30, 2025 totaled $25.7 million, which remained consistent with the December 31, 2024 balance. The loan portfolio represented 32.3% of total assets at June 30, 2025 (December 31, 2024: 31.4%), while loans as a percentage of total deposits was 35.7% at June 30, 2025 (December 31, 2024: 35.1%). The increase in both ratios was attributable principally to an increase in loan balances, primarily driven by foreign exchange translation as a result of a strengthened Pound Sterling, at June 30, 2025 compared to December 31, 2024. As at June 30, 2025, the Bank had gross non-accrual loans of $93.3 million, representing 2.0% of total gross loans, an increase of $16.7 million from $76.7 million, or 1.7% of total loans, at December 31, 2024. The increase in non-accrual loans during the six-month period to June 30, 2025 was driven by two residential mortgage facilities in the Channel Islands and UK segment and partially offset by the settlement of a commercial real estate loan facility in Bermuda. Investment in Securities The investment portfolio was $5.5 billion at June 30, 2025, which was $0.1 billion lower than the December 31, 2024 balances. The investment portfolio is made up of high-quality assets with 100% invested in A-or-better-rated securities. The investment book yield was 2.67% during the quarter ended June 30, 2025 compared with 2.68% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio is lower at $120.0 million, an improvement of $43.3 million compared with total net unrealized losses of $163.3 million at December 31, 2024. Deposits Average total deposit balances were $12.7 billion for the quarter ended June 30, 2025 which is $0.2 billion higher than the prior quarter, while period end balances as at June 30, 2025 were $12.8 billion, an increase of $0.1 billion compared to December 31, 2024. Average Balance Sheet 2 (2) Averages are based upon a daily averages for the periods indicated. Expand Assets Under Administration and Assets Under Management Total assets under administration for the trust and custody businesses were $131.0 billion and $26.9 billion, respectively, at June 30, 2025, while assets under management were $6.3 billion at June 30, 2025. This compares with $131.3 billion, $30.5 billion and $6.0 billion, respectively, at December 31, 2024. Reconciliation of US GAAP Results to Core Earnings The table below shows the reconciliation of net income in accordance with US GAAP to core earnings, a non-GAAP measure, which excludes certain significant items that are included in our US GAAP results of operations. We focus on core net income, which we calculate by adjusting net income to exclude certain income or expense items that are not representative of our business operations, or 'non-core'. Core net income includes revenue, gains, losses and expense items incurred in the normal course of business. We believe that expressing earnings and certain other financial measures excluding these non-core items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Bank and predicting future performance. We believe that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as management. Conference Call Information: Butterfield will host a conference call to discuss the Bank's results on Tuesday, July 29, 2025 at 10:00 a.m. Eastern Time. Callers may access the conference call by dialing +1 (844) 855-9501 (toll-free) or +1 (412) 858-4603 (international) ten minutes prior to the start of the call and referencing the Conference ID: Butterfield Group. A live webcast of the conference call, including a slide presentation, will be available in the investor relations section of Butterfield's website at A replay of the call will be archived on the Butterfield website for 12 months. About Non-GAAP Financial Measures: Certain statements in this release involve the use of non-GAAP financial measures. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with US GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with US GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See "Reconciliation of US GAAP Results to Core Earnings" for additional information. Forward-Looking Statements: Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions estimates, intentions, and future performance, including, without limitation, our intention to make share repurchases or otherwise increase shareholder value, our dividend payout target, our fee/income ratio, our OCI, our growth and expenses, and interest rate levels and impact on our earnings, and business activity levels, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including worldwide economic conditions (including economic growth and general business conditions), changes in trade policies and practices and the resulting uncertainty, market volatility, and potential deterioration in economic conditions, fluctuations of interest rates, inflation, a decline in Bermuda's sovereign credit rating, any sudden liquidity crisis, the successful completion and integration of acquisitions (including our integration of the trust assets acquired from Credit Suisse) or the realization of the anticipated benefits of such acquisitions in the expected time-frames or at all, success in business retention (including the retention of relationships associated with our Credit Suisse acquisition) and obtaining new business, potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements. All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC's website at Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. BF-All Presentation of Financial Information: Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them. About Butterfield: Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: Further details on the Butterfield Group can be obtained from our website at: BF-All
CNBC
5 days ago
- Business
- CNBC
This health care stock forming a 'big base breakout' is ready to separate from the pack, charts indicate
While the health care sector has been a chronic underperformer in recent years, our process is showing that a number of stocks in this struggling sector are exhibiting real signs of strength. With an encouraging earnings report this week, followed by an impressive breakout above resistance, Boston Scientific Corp. (BSX) may be setting up for significant gains beyond current levels. The daily chart shows how BSX is setting up with a classic "big base breakout" pattern, where a multi-month consolidation pattern is finally exited with a significant upside move. As legendary technical analyst Alan Shaw used to say, "The bigger the base, the higher in space!" So after six months of sideways price action, including a test of the 200-day moving average at the April low, BSX appears to be completing a bullish rotation above resistance around $106.50. In terms of upside price targets after a breakout of this magnitude, a common technique is to take the height of the consolidation pattern and project that range to the upside. Given the range of around $20 for this pattern, that would imply a minimum upside objective around $126, representing about a 17% gain from current levels. To further validate this breakout scenario, we can analyze volume indicators to determine whether there is enough buying power represented in the charts. Here we're showing Boston Scientific along with three volume indicators. First, we have the raw daily volume readings, shown just below the daily price bars. Then we are showing the Accumulation/Distribution Line, which represents the trend in volume over time. Finally, we've included the Chaikin Money Flow, which uses daily price and volume movements to measure periods of accumulation and distribution. We can see that Wednesday's rally after the earnings release was marked by about double the normal volume. This shows that significant demand was seen for Boston Scientific as investors literally bought into the bullish case for future earnings growth. The Accumulation/Distribution Line has been trending higher for most of the last 12 months, and the Chaikin Money Flow remains firmly above the zero level. These two technical indicators suggest that BSX is in a period of accumulation, suggesting a bullish outlook with further upside potential. The weekly chart shows that the consolidation from the last six months has indeed represented a brief pause within a multiyear rally phase for Boston Scientific. Since a key breakout above resistance in early 2023, BSX has remained in a consistent uptrend phase with improving relative strength. Two major pullbacks during the uptrend phase, in October 2023 and March 2025, saw this health care name find support at an ascending 40-week moving average. So while BSX has underperformed the S & P 500 in recent months, the long-term trend remains on solid footing. Many investors have been ignoring the health sector in 2025, given the chronic underperformance and questionable technical configurations. But charts like BSX provide an important reminder that even the most chart-challenged sectors can often include stocks that stand out with bullish setups. -David Keller, CMT DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
5 days ago
- Business
- Yahoo
BSX Q2 Deep Dive: Cardiovascular Momentum, New Technologies, and Global Expansion Shape Outlook
Medical device company Boston Scientific (NYSE:BSX) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 22.8% year on year to $5.06 billion. Guidance for next quarter's revenue was optimistic at $4.97 billion at the midpoint, 2.2% above analysts' estimates. Its non-GAAP profit of $0.75 per share was 4.1% above analysts' consensus estimates. Is now the time to buy BSX? Find out in our full research report (it's free). Boston Scientific (BSX) Q2 CY2025 Highlights: Revenue: $5.06 billion vs analyst estimates of $4.89 billion (22.8% year-on-year growth, 3.4% beat) Adjusted EPS: $0.75 vs analyst estimates of $0.73 (4.1% beat) Adjusted EBITDA: $1.51 billion vs analyst estimates of $1.43 billion (29.8% margin, 5.3% beat) Revenue Guidance for Q3 CY2025 is $4.97 billion at the midpoint, above analyst estimates of $4.86 billion Management raised its full-year Adjusted EPS guidance to $2.97 at the midpoint, a 2.2% increase Operating Margin: 16.2%, up from 12.6% in the same quarter last year Organic Revenue rose 17.4% year on year (14.7% in the same quarter last year) Market Capitalization: $159.4 billion StockStory's Take Boston Scientific's second quarter results reflected broad-based strength, with operational sales rising sharply and organic growth notably outpacing the company's underlying market rates. Management attributed the quarter's outperformance to the Cardiovascular segment, particularly the rapid adoption of FARAPULSE for atrial fibrillation and the sustained momentum of the WATCHMAN device. CEO Michael Mahoney highlighted that the 'reliability and trust that the physician community and referring physicians have in [WATCHMAN], along with our clinical and sales team, is driving that.' The company also cited double-digit growth in several international markets and ongoing commercial execution as key contributors to strong top-line and adjusted profitability. Looking ahead, Boston Scientific's updated guidance is grounded in expectations for continued expansion in core cardiovascular therapies, additional product launches, and further international market penetration. Management emphasized that ongoing investments in research and development, as well as anticipated regulatory approvals for devices such as the EMPOWER leadless pacemaker and expanded indications for FARAPULSE, are set to support the company's growth trajectory. CFO Jonathan Monson stated, 'We now expect to expand full year adjusted operating margin by 75 to 100 basis points while increasing our level of investment in R&D to fuel durable, differentiated revenue growth.' Key Insights from Management's Remarks Management pointed to product innovation and market adoption in cardiovascular therapies as the primary drivers of recent performance, while also addressing operational challenges from product discontinuations and tariffs. Cardiovascular growth surge: The Cardiovascular segment led company growth, fueled by strong demand for FARAPULSE (a pulsed field ablation system for atrial fibrillation) and robust performance of the WATCHMAN left atrial appendage closure device. New labeling and expanded indications, particularly in Japan and the U.S., supported broader adoption. WATCHMAN and concomitant procedures: WATCHMAN's uptake was enhanced by the trend toward concomitant procedures, where atrial fibrillation ablation and appendage closure are performed together. Over 60% of U.S. electrophysiologists using WATCHMAN are adopting this approach, following recent clinical data and reimbursement changes. Management expects ongoing growth as clinical evidence and payer support evolve. Impact of product discontinuation: The global discontinuation of the ACURATE valve led to inventory write-downs and pressured gross margins. However, management highlighted that strong revenue growth and 'spend control' offset these headwinds, keeping full-year margin guidance intact. Geographic diversification: The Asia Pacific region posted double-digit growth, led by Japan and China, where new product launches and expanded clinical indications contributed. The company expects mid-teens growth in China to continue, citing the diversification of its portfolio and ongoing investment in commercial capabilities. Strategic acquisitions: Recent acquisitions of SoniVie (ultrasound-based therapy for hypertension) and Intera Oncology (liver cancer therapies) are intended to strengthen the company's portfolio in targeted adjacencies. Management noted that these additions align with Boston Scientific's strategy to address large, growing end markets and complement existing franchises. Drivers of Future Performance Boston Scientific's forward outlook is anchored by continued innovation, expanded product approvals, and a focus on international growth, balanced against expected tariff and reimbursement headwinds. Expanded product indications: Management anticipates growth from regulatory approvals for new devices and expanded indications, including the expected launch of the EMPOWER leadless pacemaker and additional labeling for FARAPULSE in Japan and China. These approvals are seen as key to increasing the company's addressable market and supporting durable revenue growth. Ongoing R&D and investment: The company plans to maintain elevated investment in research and development, particularly to accelerate clinical trials and support upcoming product launches. This includes expanding clinical evidence for products such as FARAPULSE and WATCHMAN, which management believes will reinforce competitive positioning. External pressures and risk management: Tariffs and reimbursement changes—such as proposed cuts to Medicare payments for certain cardiac procedures—present headwinds. Management stated that they expect a $100 million tariff headwind for the year but intend to offset these impacts through sales mix improvements and expense discipline. They also acknowledged the need for ongoing engagement with medical societies to address reimbursement challenges. Catalysts in Upcoming Quarters Looking ahead, the StockStory team will focus on (1) the pace and commercial impact of new product launches and regulatory approvals, (2) the sustainability of double-digit growth in key international markets such as China and Japan, and (3) the company's ability to manage margin pressures from tariffs and reimbursement changes. Progress in integrating recent acquisitions and execution on clinical trial milestones will also be important indicators. Boston Scientific currently trades at $108.70, up from $103.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Our Favorite Stocks Right Now When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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Globe and Mail
6 days ago
- Business
- Globe and Mail
Boston Scientific Beats on Q2 Earnings, Raises 2025 View, Stock Up
Boston Scientific Corporation BSX posted second-quarter 2025 adjusted earnings per share (EPS) 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 EPS for the second quarter was 53 cents, reflecting a 141% jump from the year-ago quarter's 22 cents. Q2 Revenue Details of BSX 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%. Following the earnings announcement, shares of BSX climbed 1.6% in pre-market trading today. BSX's 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). Breaking Down BSX's 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%. BSX's 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 EPS 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. Our View on BSX Stock Boston Scientific ended the second quarter of 2025 on a solid note, with both revenues and earnings beating the respective estimates. The performance reflected the strength of the company's product portfolio and the effectiveness of its highly engaged global team. Additionally, the raised sales and EPS guidance for the full year instill optimism. However, contraction of both margins in the quarter is concerning. Boston Scientific achieved several milestones across its portfolio in the second quarter. It gained FDA approval to expand the labeling of its FARAPULSE PFA System for treating drug-refractory, symptomatic persistent atrial fibrillation (AF) and began enrollment in the ReMATCH IDE trial to evaluate its FARAWAVE and FARAPOINT PFA catheters in patients with recurrent persistent AF. In Europe, the company secured CE Mark for the WATCHMAN FLX Pro device, designed to improve healing, visualization and anatomical fit. Boston Scientific also completed the acquisitions of Intera Oncology and SoniVie, strengthening its presence in liver cancer and hypertension treatment technologies. BSX's Zacks Rank and Other Key Picks Boston Scientific currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader medical space are Cencora COR, Veeva Systems VEEV and Resmed RMD. Cencora, carrying a Zacks Rank #2, reported second-quarter fiscal 2025 adjusted EPS of $4.42, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $75.45 billion beat the consensus mark by 0.8%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. COR has a historical average earnings growth rate of 13.8% compared with the industry's 1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 6%. Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%. VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry's 17.9% growth. The company's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%. Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%. RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry's 14% growth. The company's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Veeva Systems Inc. (VEEV): Free Stock Analysis Report
Yahoo
6 days ago
- Business
- Yahoo
Boston Scientific: Q2 Earnings Snapshot
MARLBOROUGH, Mass. (AP) — MARLBOROUGH, Mass. (AP) — Boston Scientific Corp. (BSX) on Wednesday reported second-quarter profit of $797 million. On a per-share basis, the Marlborough, Massachusetts-based company said it had net income of 53 cents. Earnings, adjusted for one-time gains and costs, came to 75 cents per share. The results beat Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 72 cents per share. The medical device manufacturer posted revenue of $5.06 billion in the period, also exceeding Street forecasts. Ten analysts surveyed by Zacks expected $4.89 billion. For the current quarter ending in September, Boston Scientific expects its per-share earnings to range from 70 cents to 72 cents. The company expects full-year earnings in the range of $2.95 to $2.99 per share. Boston Scientific shares have increased 15% since the beginning of the year, while the S&P's 500 index has increased slightly more than 7%. The stock has increased 32% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on BSX at
