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10-QPeriod: Q3 FY2021

BOSTON SCIENTIFIC CORP Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 4, 2021For Securities:BSX

Summary

Boston Scientific Corporation (BSX) reported strong financial results for the third quarter and the first nine months of 2021, demonstrating significant recovery and growth compared to the prior year, which was heavily impacted by the COVID-19 pandemic. Net sales increased by 10.3% to $2.932 billion for the quarter and by 21.6% to $8.761 billion for the nine-month period, driven by the resumption of elective and semi-emergent medical procedures and contributions from recent acquisitions. The company achieved profitability, with net income available to common stockholders of $405 million ($0.28 per diluted share) for the third quarter and $905 million ($0.63 per diluted share) for the nine months. This turnaround from a net loss in the comparable periods of 2020 highlights effective cost management and operational execution. Key strategic acquisitions, including Preventice Solutions, Lumenis, and Farapulse, are beginning to integrate and contribute to revenue growth, particularly in the Urology & Pelvic Health and Electrophysiology segments.

Financial Statements
Beta
Revenue$2.93B
Cost of Revenue$900.00M
Gross Profit$2.03B
SG&A Expenses$1.07B
Operating Expenses$1.65B
Operating Income$387.00M
Interest Expense$86.00M
Net Income$419.00M
EPS (Basic)$0.28
EPS (Diluted)$0.28
Shares Outstanding (Basic)1.42B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Net sales increased by 10.3% to $2.932 billion in Q3 2021 and 21.6% to $8.761 billion for the first nine months of 2021, indicating a strong recovery from the prior year.
  • 2The company achieved profitability, reporting net income available to common stockholders of $405 million ($0.28/share) for Q3 2021 and $905 million ($0.63/share) for the nine months.
  • 3Gross profit margin improved to 69.3% in Q3 2021 and 68.7% for the nine months, up from 67.3% and 65.8% respectively in the prior year, driven by higher sales volumes and a favorable product mix.
  • 4Significant strategic acquisitions in 2021, including Preventice Solutions, Lumenis, and Farapulse, are contributing to revenue growth and portfolio expansion.
  • 5Operating income saw a substantial improvement, turning positive to $387 million in Q3 2021 and $1.019 billion for the nine months, a significant recovery from the net loss reported in the prior year periods.
  • 6The company ended the quarter with a strong liquidity position, including $1.947 billion in cash and cash equivalents and $2.207 billion in working capital.

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