How did Boston Scientific perform against its own guidance in Q4 2023?

Results exceeded guidance on every measure. Reported net sales growth was 14.9% versus a 9-11% guidance range, organic growth was 13.6% versus 8-10%, GAAP EPS was $0.34 versus $0.26-$0.30, and adjusted EPS was $0.55 versus $0.49-$0.52.

What is the 2024 outlook for Boston Scientific?

For full-year 2024, the company expects reported net sales growth of about 8.5-9.5% and organic growth of about 8-9%. It estimates GAAP EPS of $1.38-$1.42 and adjusted EPS of $2.23-$2.27. For Q1 2024, it guides to 7.5-9.5% reported growth and adjusted EPS of $0.50-$0.52.

Which business segments drove growth in the fourth quarter?

The Cardiovascular segment grew 13.9% reported and 13.3% organic, driven by Cardiology at 14.5% reported. MedSurg grew 11.1% reported and 8.9% organic, with Endoscopy (+12.9%) and Urology (+10.5%) contributing.

What product and pipeline developments were announced?

The FDA approved the FARAPULSE Pulsed Field Ablation System for drug-resistant, paroxysmal atrial fibrillation and the TENACIO Pump for AMS 700 penile prostheses. Enrollment began in the AVANT GUARD trial for first-line persistent AF and in the LAAOS-4 trial for WATCHMAN LAAC devices. The company also completed the Relievant Medsystems acquisition and agreed to acquire Axonics, subject to closing conditions.

Are there any one-time items that affect the GAAP results?

Yes. Full-year 2023 GAAP results include a $111 million litigation-related net credit, which lowered GAAP operating expenses. Adjusted figures exclude items such as amortization ($828M for the year), acquisition-related charges, restructuring, and deferred and discrete tax items. Investors should review the reconciliation tables when comparing GAAP and adjusted EPS.

BSX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Boston Scientific (BSX) reported strong fourth quarter and full-year 2023 results on January 31, 2024.

Q4 net sales reached $3.725 billion^a, up 14.9% reported, 14.5% operational, and 13.6% organic, beating the company's guidance ranges of 9-11% reported and 8-10% organic. GAAP EPS was $0.34 versus $0.09 a year earlier, and adjusted EPS was $0.55 versus $0.45, both above guidance ($0.26-$0.30 GAAP; $0.49-$0.52 adjusted). Cardiovascular (up 13.9% reported) drove growth, led by Cardiology, while MedSurg grew 11.1%.

Asia-Pacific (up 14.8% reported, 17.0% operational) and Emerging Markets (up 16.3% reported) were standout regions. For full-year 2023, net sales were $14.240 billion^b, up 12.3% reported and 12.3% organic, and GAAP EPS was $1.07 versus $0.45. Adjusted EPS was $2.05, up from $1.71.

Management also gave 2024 guidance of 8.5-9.5% reported and 8-9% organic net sales growth, with GAAP EPS of $1.38^c-$1.42 and adjusted EPS of $2.23-$2.27. First-quarter 2024 guidance called for 7.5-9.5% reported growth and adjusted EPS of $0.50-$0.52.

The filing highlights regulatory and pipeline progress, including FDA approval of the FARAPULSE PFA System for paroxysmal atrial fibrillation, the TENACIO Pump approval, the completed Relievant Medsystems acquisition, and the pending Axonics acquisition. Investors should note that the company's full-year 2023 GAAP results included a $111 million^d litigation-related net credit, and the press release is furnished under Item 2.02 rather than filed.

02—Key points

Key Highlights

Q4 2023 net sales of $3.725B grew 14.9% reported and 13.6% organic, beating guidance of 9-11% reported and 8-10% organic.
Q4 GAAP EPS of $0.34 (vs. $0.09 prior year) and adjusted EPS of $0.55 (vs. $0.45) both exceeded guidance ranges.
Full-year 2023 net sales of $14.240B grew 12.3% reported and organic; adjusted EPS rose to $2.05 from $1.71.
Cardiovascular segment grew 13.9% in Q4, led by Cardiology (+14.5% reported), while MedSurg grew 11.1%.
Asia-Pacific (+14.8% reported, +17.0% operational) and Emerging Markets (+16.3% reported) were the fastest-growing regions in Q4.
2024 guidance calls for 8.5-9.5% reported and 8-9% organic net sales growth, with adjusted EPS of $2.23-$2.27 and GAAP EPS of $1.38-$1.42.
FDA approval of FARAPULSE PFA for paroxysmal AF and the pending Axonics acquisition support the company's long-term growth outlook.

03—Questions

Frequently Asked Questions

How did Boston Scientific perform against its own guidance in Q4 2023?
Results exceeded guidance on every measure. Reported net sales growth was 14.9% versus a 9-11% guidance range, organic growth was 13.6% versus 8-10%, GAAP EPS was $0.34 versus $0.26-$0.30, and adjusted EPS was $0.55 versus $0.49-$0.52.
What is the 2024 outlook for Boston Scientific?
For full-year 2024, the company expects reported net sales growth of about 8.5-9.5% and organic growth of about 8-9%. It estimates GAAP EPS of $1.38-$1.42 and adjusted EPS of $2.23-$2.27. For Q1 2024, it guides to 7.5-9.5% reported growth and adjusted EPS of $0.50-$0.52.
Which business segments drove growth in the fourth quarter?
The Cardiovascular segment grew 13.9% reported and 13.3% organic, driven by Cardiology at 14.5% reported. MedSurg grew 11.1% reported and 8.9% organic, with Endoscopy (+12.9%) and Urology (+10.5%) contributing.
What product and pipeline developments were announced?
The FDA approved the FARAPULSE Pulsed Field Ablation System for drug-resistant, paroxysmal atrial fibrillation and the TENACIO Pump for AMS 700 penile prostheses. Enrollment began in the AVANT GUARD trial for first-line persistent AF and in the LAAOS-4 trial for WATCHMAN LAAC devices. The company also completed the Relievant Medsystems acquisition and agreed to acquire Axonics, subject to closing conditions.
Are there any one-time items that affect the GAAP results?
Yes. Full-year 2023 GAAP results include a $111 million litigation-related net credit, which lowered GAAP operating expenses. Adjusted figures exclude items such as amortization ($828M for the year), acquisition-related charges, restructuring, and deferred and discrete tax items. Investors should review the reconciliation tables when comparing GAAP and adjusted EPS.

04—Continue

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