BS

Boston Scientific Corporation stock research

Sep 30, 2024

FY2024 Q3

Boston Scientific (BSX) Gross Margin — Quarter Ended Sep 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit improved year over year but was stable sequentially, leading to a gross margin that was largely unchanged from a year ago but slightly lower than the prior quarter.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit improved year over year but was stable sequentially, leading to a gross margin that was largely unchanged from a year ago but slightly lower than the prior quarter.

  • Revenue growth outpaced cost of revenue growth relative to the prior quarter, but the margin still edged lower. Compared to a year ago, both revenue and cost of revenue increased at a similar pace, leaving the margin unchanged.
  • Versus the immediately preceding quarter, gross margin weakened slightly. Versus the same quarter one year earlier, gross margin was stable.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

68.8%

Gross profit

$2.9B

Revenue

$4.2B

Cost of revenue

$1.3B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+0.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$3.7B$2.6B$1.1B69.2%
Mar 31, 2024$3.9B$2.6B$1.2B68.7%
Jun 30, 2024$4.1B$2.9B$1.3B69.2%
Sep 30, 2024$4.2B$2.9B$1.3B68.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-0.3 pts

Year-over-year change

Sep 30, 2023

+0.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Revenue growth outpaced cost of revenue growth relative to the prior quarter, but the margin still edged lower. Compared to a year ago, both revenue and cost of revenue increased at a similar pace, leaving the margin unchanged.

Versus the immediately preceding quarter, gross margin weakened slightly. Versus the same quarter one year earlier, gross margin was stable.

Monitor the trajectory of cost of revenue relative to revenue, as a narrowing gap may pressure gross margin further.