MARLBOROUGH, Mass., July 24, 2024 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) generated net sales of $4.120 billion during the second quarter of 2024, growing 14.5 percent on a reported basis, 16.1 percent on an operational1 basis and 14.7 percent on an organic2 basis, all compared to the prior year period. The company reported GAAP net income attributable to Boston Scientific common stockholders of $324 million or $0.22 per share (EPS), compared to $261 million or $0.18 per share a year ago, and achieved adjusted3 EPS of $0.62 for the period, compared to $0.53 a year ago.
"We delivered a quarter marked by exceptional performance, reflecting our global team's relentless pursuit of innovation that is supported by strong clinical evidence and investments aligned with our strategy of category leadership," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We remain excited about our plans for the future, and I am incredibly grateful for the commitment and winning spirit of our employees around the world."
Second quarter financial results and recent developments:
1. Operational net sales growth excludes the impact of foreign currency fluctuations. |
Net sales for the second quarter by business and region:
Increase/(Decrease) | |||||||||||||
Three Months Ended June 30, | Reported | Impact of | Operational Basis | Impact of | Organic | ||||||||
(in millions) | 2024 | 2023 | |||||||||||
Endoscopy | $ 676 | $ 631 | 7.1 % | 1.3 % | 8.4 % | (0.5) % | 7.9 % | ||||||
Urology | 525 | 485 | 8.2 % | 0.9 % | 9.1 % | — % | 9.1 % | ||||||
Neuromodulation | 282 | 244 | 15.5 % | 0.7 % | 16.2 % | (12.5) % | 3.7 % | ||||||
MedSurg | 1,483 | 1,360 | 9.0 % | 1.0 % | 10.1 % | (2.5) % | 7.6 % | ||||||
Cardiology | 2,047 | 1,704 | 20.1 % | 1.9 % | 22.0 % | — % | 22.0 % | ||||||
Peripheral Interventions | 590 | 535 | 10.2 % | 2.1 % | 12.3 % | (2.8) % | 9.4 % | ||||||
Cardiovascular | 2,637 | 2,239 | 17.8 % | 1.9 % | 19.7 % | (0.7) % | 19.0 % | ||||||
Net Sales | $ 4,120 | $ 3,599 | 14.5 % | 1.6 % | 16.1 % | (1.4) % | 14.7 % |
Increase/(Decrease) | |||||||||
Three Months Ended June 30, | Reported | Impact of | Operational Basis | ||||||
(in millions) | 2024 | 2023 | |||||||
U.S. | $ 2,466 | $ 2,110 | 16.9 % | — % | 16.9 % | ||||
EMEA | 822 | 723 | 13.7 % | 2.5 % | 16.1 % | ||||
APAC | 670 | 626 | 7.0 % | 6.2 % | 13.2 % | ||||
LACA | 162 | 140 | 15.3 % | 0.4 % | 15.7 % | ||||
Net Sales | $ 4,120 | $ 3,599 | 14.5 % | 1.6 % | 16.1 % | ||||
Emerging Markets4 | $ 680 | $ 592 | 14.8 % | 4.6 % | 19.3 % | ||||
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | |||||||||
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions/divestitures are not prepared |
Guidance for Full Year and Third Quarter 2024
The company estimates net sales growth for the full year 2024, versus the prior year period, to be in range of approximately 13.5 to 14.5 percent on a reported basis, and 13 to 14 percent on an organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $1.34 to $1.38 and estimates adjusted EPS, excluding certain charges (credits), of $2.38 to $2.42.
The company estimates net sales growth for the third quarter of 2024, versus the prior year period, to be in a range of approximately 13 to 15 percent on both a reported basis and organic basis. Third quarter organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $0.36 to $0.38 and adjusted EPS, excluding certain charges (credits), of $0.57 to $0.59.
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET. The company will webcast the call to interested parties through its website: investors.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for approximately one year on the Boston Scientific website.
About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of health care. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales; reported, operational and organic revenue growth rates; reported and adjusted EPS for the third quarter and full year 2024; our financial performance; acquisitions; clinical trials; our business plans and product performance; and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Risks and uncertainties that may cause such differences include, among other things: economic conditions, including the impact of foreign currency fluctuations; future U.S. and global political, competitive, reimbursement and regulatory conditions; geopolitical events; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by public health emergencies or extreme weather or other climate change-related events; labor shortages and increases in labor costs; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions; expected procedural volumes; the closing and integration of acquisitions; demographic trends; intellectual property; litigation; financial market conditions; the execution and effect of our business strategy, including our cost-savings and growth initiatives; and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements, except as required by law. This cautionary statement is applicable to all forward-looking statements contained in this press release.
Note: Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.
Use of Non-GAAP Financial Information
A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.
CONTACT: | ||||
Media: | Emily Anderson | Investors: | Jonathan Monson | |
617-515-2000 (office) | 508-683-5450 (office) | |||
Media Relations | Investor Relations | |||
Boston Scientific Corporation | Boston Scientific Corporation | |||
BOSTON SCIENTIFIC CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
in millions, except per share data | 2024 | 2023 | 2024 | 2023 | |
Net sales | $ 4,120 | $ 3,599 | $ 7,977 | $ 6,988 | |
Cost of products sold | 1,270 | 1,058 | 2,479 | 2,098 | |
Gross profit | 2,850 | 2,542 | 5,498 | 4,891 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 1,446 | 1,354 | 2,810 | 2,570 | |
Research and development expenses | 383 | 359 | 749 | 695 | |
Royalty expense | 9 | 12 | 19 | 23 | |
Amortization expense | 213 | 210 | 427 | 412 | |
Intangible asset impairment charges | 276 | 57 | 276 | 57 | |
Contingent consideration net expense (benefit) | 2 | 19 | 18 | 31 | |
Restructuring net charges (credits) | 1 | 16 | 5 | 36 | |
2,330 | 2,028 | 4,303 | 3,825 | ||
Operating income (loss) | 520 | 514 | 1,195 | 1,066 | |
Other income (expense): | |||||
Interest expense | (77) | (70) | (146) | (135) | |
Other, net | (23) | (18) | (21) | (61) | |
Income (loss) before income taxes | 420 | 426 | 1,028 | 870 | |
Income tax expense (benefit) | 98 | 156 | 213 | 287 | |
Net income (loss) | 322 | 270 | 815 | 584 | |
Preferred stock dividends | — | (9) | — | (23) | |
Net income (loss) attributable to noncontrolling interests | (2) | — | (4) | — | |
Net income (loss) attributable to Boston Scientific | $ 324 | $ 261 | $ 819 |
Visual performance / price development - Boston Scientific
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