Early Access

10-QPeriod: Q3 FY2023

BOSTON SCIENTIFIC CORP Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 1, 2023For Securities:BSX

Summary

Boston Scientific Corporation (BSX) reported strong financial results for the third quarter and first nine months of 2023. Net sales increased by 11.2% to $3.527 billion in Q3 2023 and by 11.4% to $10.515 billion for the nine-month period, driven by robust operational growth across its diverse product portfolio and strategic acquisitions. The company demonstrated significant profitability, with net income attributable to common stockholders rising to $505 million ($0.34 per diluted share) in Q3 2023 and $1.065 billion ($0.73 per diluted share) for the nine-month period. Key operational improvements and strategic acquisitions, including Apollo Endosurgery and Acotec Scientific Holdings, contributed positively to revenue growth. The company also managed its expenses effectively, with R&D expenses increasing to support innovation and SG&A expenses growing proportionally with sales. While facing some supply chain pressures and inflationary impacts, Boston Scientific maintained a healthy gross profit margin and continued to invest in its pipeline. The company also resolved significant patent litigation, resulting in a substantial credit. Overall, BSX presented a solid financial performance with strong top-line growth and profitability.

Financial Statements
Beta
Revenue$3.53B
Cost of Revenue$1.10B
Gross Profit$2.43B
SG&A Expenses$1.24B
Operating Expenses$1.73B
Operating Income$693.00M
Interest Expense$66.00M
Net Income$504.00M
EPS (Basic)$0.34
EPS (Diluted)$0.34
Shares Outstanding (Basic)1.46B
Shares Outstanding (Diluted)1.48B

Key Highlights

  • 1Net sales for Q3 2023 grew 11.2% to $3.527 billion, and 11.4% for the nine months to $10.515 billion, indicating strong market demand and effective sales execution.
  • 2Net income attributable to common stockholders was $505 million ($0.34 per diluted share) for Q3 and $1.065 billion ($0.73 per diluted share) for the first nine months, demonstrating significant profitability.
  • 3Operational net sales growth was 11.1% in Q3 and 11.9% organically for the nine months, reflecting broad-based growth across segments and acquisitions.
  • 4Acquisitions, including Apollo Endosurgery and a majority stake in Acotec, are contributing to revenue growth and strategic positioning.
  • 5The company resolved significant patent litigation with Cook Group, resulting in a $158 million award and a subsequent settlement.
  • 6Gross profit margin remained strong at 68.8% for Q3 and improved to 69.6% for the nine months, despite some currency headwinds.
  • 7Boston Scientific continues to invest in R&D, with expenses increasing by 5% in Q3 and 6% for the nine months, supporting its innovation pipeline.

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