01—Abstract
Summary
Summary of the 10-Q filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Boston Scientific Corporation (BSX) reported strong financial performance for the third quarter and first nine months of 2024, demonstrating significant year-over-year growth in net sales.
For the third quarter, net sales increased by 19.4% to $4.209 billiona, driven by robust operational growth across its segments, particularly in Cardiology and MedSurg. Net income attributable to common stockholders was $469 million, or $0.32 per diluted share. For the first nine months, net sales grew 15.9% to $12.186 billion, with net income attributable to common stockholders at $1.288 billion, or $0.87 per diluted share.
The company highlighted strong commercial execution and the successful adoption of new products, notably the Farapulse™ Pulsed Field Ablation System, as key drivers of this performance. Acquisitions, including Silk Road Medical, also contributed to the growth. Financially, the company maintained a solid balance sheet with $2.502 billionb in unrestricted cash and cash equivalents as of September 30, 2024.
Management expressed confidence in the company's liquidity and ability to fund operations, investments, and potential acquisitions. The company is progressing towards the expected closing of the Axonics acquisition in the fourth quarter of 2024, subject to regulatory approvals.
02—Key points
Key Highlights
- Net sales for Q3 2024 grew 19.4% year-over-year to $4.209 billion, with strong operational net sales growth of 19.5%.
- Net sales for the first nine months of 2024 increased 15.9% to $12.186 billion.
- Net income attributable to Boston Scientific common stockholders was $469 million ($0.32/share) for Q3 2024 and $1.288 billion ($0.87/share) for the first nine months of 2024.
- The company completed the acquisition of Silk Road Medical in Q3 2024, which contributed to revenue growth.
- The acquisition of Axonics is expected to close in Q4 2024, pending regulatory approval.
- Unrestricted cash and cash equivalents stood at $2.502 billion as of September 30, 2024, indicating strong liquidity.
- The Farapulse™ Pulsed Field Ablation System is experiencing rapid adoption and contributing significantly to growth, particularly in the Cardiology segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Boston Scientific Corp kept $0.11.
- Revenue$4.21B100.0%
- Cost of revenue−$1.31B31.2%
- Gross profit$2.90B68.8%
- Operating costs−$2.16B51.4%
- Operating income$733.0M17.4%
- Interest, other & tax−$264.0M6.3%
- Net income$469.0M11.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 1, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $4.21B$3.53B | +19.3% |
| Cost of Revenue | $1.31B$1.10B | +19.2% |
| Gross Profit | $2.90B$2.43B | +19.4% |
| SG&A Expenses | $1.56B$1.24B | +25.8% |
| Operating Expenses | $2.16B$1.73B | +24.9% |
| Operating Income | $733.00M$693.00M | +5.8% |
| Interest Expense | $79.00M$66.00M | +19.7% |
| Net Income | $469.00M$504.00M | −6.9% |
| EPS (Basic) | $0.32$0.34 | −5.9% |
| EPS (Diluted) | $0.32$0.34 | −5.9% |
| Shares Outstanding (Basic) | 1.47B1.46B | +0.6% |
| Shares Outstanding (Diluted) | 1.49B1.48B | +0.8% |
05—Questions
Frequently Asked Questions
What was Boston Scientific's revenue performance in the third quarter of 2024?
Boston Scientific reported net sales of $4.209 billion for the third quarter of 2024, a 19.4% increase compared to $3.527 billion in the same period last year. This growth was driven by strong operational net sales growth of 19.5%, partially offset by a slight negative impact from foreign currency fluctuations.
What is the outlook for the Axonics acquisition?
The acquisition of Axonics is expected to be completed in the fourth quarter of 2024. However, the closing is subject to the expiration or termination of the waiting period under the HSR Act and the satisfaction of other customary closing conditions, following review by the FTC.
How did the company's profitability change compared to the previous year?
For the third quarter of 2024, net income attributable to Boston Scientific common stockholders was $469 million, or $0.32 per diluted share, compared to $505 million, or $0.34 per diluted share, in the third quarter of 2023. For the first nine months, net income attributable to common stockholders increased to $1.288 billion ($0.87/share) from $1.065 billion ($0.73/share) in the prior year period. The company also reported adjusted net income figures that exclude certain non-GAAP items.
What are the key drivers of revenue growth for Boston Scientific?
Revenue growth is primarily driven by strong commercial execution across its businesses, rapid adoption of new products like the Farapulse™ Pulsed Field Ablation System, and contributions from recent acquisitions such as Silk Road Medical. Growth was particularly strong in the Cardiology and MedSurg segments.
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