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BOSTON SCIENTIFIC CORP 8-K Report, Financial Results (Apr 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 24, 2024
Period End
April 24, 2024
Security
BSX
In the record · 2016–202610-K1310-Q328-K181

BSX filed 13 annual reports (10-K), 32 quarterly reports (10-Q) and 181 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’18Nov ’18
  2. Restructuring8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Boston Scientific (BSX) reported a strong first quarter 2024, with net sales of $3.856 billiona, up 13.8% on a reported basis, 15.0% operationally, and 13.1% organically year over year.

Growth beat the company's guidance ranges (7.5–9.5% reported and 7–9% organic). GAAP EPS was $0.33b diluted versus $0.21 a year earlier, and adjusted EPS was $0.56 versus a guided range of $0.50–0.52. Cardiovascular sales grew 15.9% reported (16.3% organic), led by the initial U.S. launch of the FARAPULSE pulsed field ablation system, while MedSurg grew 10.3% reported (7.8% organic).

Geographically, Asia-Pacific (+18.3% reported, +25.9% operational) and Emerging Markets (+22.6% reported, +28.2% operational) were the fastest-growing regions, and the U.S. grew 12.7%. Management raised its full-year 2024 outlook, guiding to reported net sales growth of 11–13% and organic growth of 10–12%, with GAAP EPS of $1.43c–$1.48 and adjusted EPS of $2.29–$2.34. For Q2 2024, it guided to reported sales growth of 10.5–12.5%, organic growth of 10–12%, and adjusted EPS of $0.57–$0.59.

The press release also notes a €2.0 billion Senior Notes offering, with proceeds earmarked to help fund the pending acquisition of Axonics, Inc. (Nasdaq: AXNX). Several product milestones were reported, including the FDA approval of the AGENT drug-coated balloon and expanded indications for the WaveWriter spinal cord stimulator. Investors should note that reported growth benefited from a 1.2-point foreign currency tailwind, while acquisitions and divestitures were a 1.9-point drag on reported growth, so organic growth is the cleaner read on underlying demand.

Reported net income of $495 milliond was also flattered by a $0.12-per-share amortization add-back in the adjusted figures, which is excluded from non-GAAP EPS. The filing is furnished under Item 2.02 (Exhibit 99.1), so its content is not deemed filed under Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Net sales of $3.856B grew 13.8% reported, 15.0% operational, and 13.1% organic, beating guidance of 7.5–9.5% reported and 7–9% organic.
  2. GAAP diluted EPS of $0.33 (vs. $0.21 a year ago) and adjusted EPS of $0.56 (vs. $0.47), both above the guided ranges of $0.29–$0.31 and $0.50–$0.52.
  3. Cardiovascular sales grew 15.9% reported (16.3% organic), driven by the initial U.S. launch of the FARAPULSE pulsed field ablation system; Cardiology grew 16.5% reported.
  4. MedSurg sales grew 10.3% reported (7.8% organic), with Endoscopy up 11.4% and Urology up 9.3% on a reported basis.
  5. Emerging Markets (+22.6% reported, +28.2% operational) and Asia-Pacific (+18.3% reported, +25.9% operational) were the fastest-growing regions; U.S. sales grew 12.7%.
  6. Full-year 2024 guidance raised to 11–13% reported and 10–12% organic sales growth, with adjusted EPS of $2.29–$2.34; Q2 2024 guidance is 10.5–12.5% reported sales growth and adjusted EPS of $0.57–$0.59.
  7. Completed a €2.0B Senior Notes offering, with proceeds intended to partly fund the pending Axonics, Inc. acquisition.

03—Questions

Frequently Asked Questions

  1. How strong was Boston Scientific's Q1 2024 growth relative to expectations?

    Growth was well ahead of guidance. Reported net sales rose 13.8% against a guided range of 7.5–9.5%, and organic growth of 13.1% beat the 7–9% range. Adjusted EPS of $0.56 also exceeded the $0.50–$0.52 guidance range.

  2. What drove the Cardiovascular segment's results?

    Cardiovascular sales grew 15.9% reported, led by Cardiology (+16.5%), with Peripheral Interventions up 13.9%. Management cited the initial U.S. launch of the FARAPULSE pulsed field ablation system as a key contributor.

  3. Did currency or acquisitions materially affect reported growth?

    Currency was a tailwind of about 1.2 points, while acquisitions and divestitures were a drag of about 1.9 points, so organic growth of 13.1% is the better gauge of underlying demand. Investors should also note that the adjusted EPS figure excludes amortization expense, which is roughly $0.12 per share in the quarter.

  4. What is the outlook for the rest of 2024?

    Full-year 2024 reported sales growth is guided to 11–13% (10–12% organic), with GAAP EPS of $1.43–$1.48 and adjusted EPS of $2.29–$2.34. For Q2 2024, guidance is 10.5–12.5% reported growth and adjusted EPS of $0.57–$0.59.

  5. How does the pending Axonics acquisition relate to this quarter's financing?

    Boston Scientific completed a €2.0 billion offering of EUR-denominated Senior Notes and intends to use the net proceeds to fund part of its agreed acquisition of Axonics, Inc. (Nasdaq: AXNX). The filing does not specify the total deal value or closing timeline.

04—Continue

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