Why is Boston Scientific withdrawing its 2020 financial guidance?

Boston Scientific is withdrawing its 2020 financial guidance primarily due to the significant and uncertain impact of the COVID-19 pandemic. Global recommendations to defer elective medical procedures are expected to negatively affect the company's financial performance.

What is the expected impact of COVID-19 on Boston Scientific's business?

The company anticipates a negative impact on its financial results. This is largely due to the mandated or recommended deferral of elective medical procedures worldwide, as well as broader disruptions from the pandemic and the evolving macroeconomic environment.

When will Boston Scientific provide updated financial information?

Boston Scientific plans to provide additional information and potentially updated financial expectations during its next earnings call, which is scheduled for April 29, 2020.

Does the company believe its long-term prospects are still strong?

Yes, despite the short-term uncertainty, Boston Scientific believes its long-term fundamentals remain excellent. This confidence is attributed to its innovative product portfolio and pipeline, the high acuity nature of its business, its category leadership strategy, and its global team.

BSX 8-K: Earnings & Results

Summary

Boston Scientific Corporation (BSX) announced on March 29, 2020, its decision to withdraw its previously issued financial guidance for both the first quarter and the full year of 2020. This withdrawal is a direct response to the escalating global COVID-19 pandemic. The company cited the widespread recommendation from medical authorities to defer elective medical procedures as a primary driver of this decision. The pandemic's disruption and the evolving macroeconomic environment are expected to have a negative impact on BSX's financial results. Due to the significant uncertainty surrounding the pandemic's scope and duration, the company is currently unable to provide updated financial estimates. Further details and updated information are expected to be shared during the company's earnings call scheduled for April 29, 2020.

Key Highlights

1Withdrawal of Q1 and Full Year 2020 financial guidance due to COVID-19 impact.
2Expectation of negative impact on financial results from deferred elective medical procedures.
3Significant uncertainty regarding the scope and duration of the pandemic's impact.
4Company unable to provide specific updated financial estimates at this time.
5Additional information to be provided on the April 29, 2020 earnings call.
6Company expresses confidence in long-term fundamentals based on product portfolio, business mix, and strategy.

BOSTON SCIENTIFIC CORP 8-K Report, Financial Results (Mar 30, 2020)

Summary

Key Highlights

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