BS

Boston Scientific Corporation stock research

Dec 31, 2024

FY2024 Q4

Boston Scientific (BSX) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.

  • The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a sequential basis, but the margin still narrowed. This suggests that cost of revenue grew at a faster rate relative to revenue when compared to the prior quarter.
  • Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.

Gross margin snapshot

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

Gross margin

67.9%

Gross profit

$3.1B

Revenue

$4.6B

Cost of revenue

$1.5B

Quarter-over-quarter change

-1.0 pts

Year-over-year change

-1.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Dec 31, 2024$4.6B$3.1B$1.5B67.9%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-1.0 pts

Year-over-year change

Dec 31, 2023

-1.4 pts

What the margin says

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

The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a sequential basis, but the margin still narrowed. This suggests that cost of revenue grew at a faster rate relative to revenue when compared to the prior quarter.

Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.

Monitor the trend in cost of revenue relative to revenue, as its growth rate has outpaced revenue growth on a year-over-year basis.