Boston Scientific Surpasses Q3 Earnings Expectations, Boosts 2024 Outlook
Boston Scientific Corporation (BSX) delivered a strong performance in the third quarter of 2023, exceeding both revenue and earnings estimates. The company reported total revenue of $4.21 billion, surpassing the consensus estimate of $4.04 billion. This represents a robust 19.4% increase on a reported basis, exceeding the company’s guidance range of 13%-15%. On an operational basis, sales rose by 19.5%, and on an organic basis, they climbed by 18.2%.
The company’s adjusted earnings per share (EPS) also came in above expectations, reaching $0.63 compared to the consensus estimate of $0.59 and the management guidance of $0.57-$0.59.
Cardiovascular Segment Drives Growth
Boston Scientific’s cardiovascular segment was a key driver of the company’s success, generating $2.73 billion in sales, a remarkable 25% increase year-over-year. This growth was fueled by strong performance in cardiology products, which saw a 29.2% increase in sales, and peripheral interventions, which grew by 11.8%.
MedSurg Segment Shows Solid Performance
The company’s MedSurg segment also contributed to the positive results, with revenue increasing 10.3% to $1.48 billion. Neuromodulation, a key segment within MedSurg, experienced a strong 17% growth rate, followed by Urology (10.3%) and Endoscopy (7.8%).
Strong Guidance for 2024
Buoyed by the robust Q3 performance, Boston Scientific raised its full-year 2024 guidance. The company now anticipates net sales growth of approximately 16.5% on a reported basis and 15% on an organic basis, compared to its previous guidance of 13.5%-14.5% and 13%-14%, respectively. The company also expects adjusted EPS in the range of $2.45-$2.47, surpassing its earlier forecast of $2.38-$2.42 and exceeding the consensus estimate of $2.41.
Fourth Quarter Outlook
For the fourth quarter of 2023, Boston Scientific projects net sales growth of approximately 16.5%-18.5% on a reported basis and 14%-16% on an organic basis. The company forecasts adjusted EPS of $0.64-$0.66, aligning with the consensus estimate of $0.64.
Stock Dips Despite Strong Earnings
Despite exceeding expectations in the third quarter and raising its 2024 outlook, Boston Scientific’s stock experienced a decline on Wednesday. This dip can be attributed to a more cautious fourth-quarter guidance, potentially signaling a slowdown in growth momentum. While the company is confident about its long-term prospects, the market appears to be reacting to the near-term outlook.
Analysts Remain Bullish on Boston Scientific
Equity research analysts remain optimistic about Boston Scientific’s future, with an average 1-year price target of $91.47, representing a potential upside of 7.71%. Notably, all analysts surveyed currently maintain bullish ratings on the stock, highlighting the positive sentiment surrounding the company’s long-term growth prospects.
