Full Press Release Details
MARLBOROUGH, Mass. , July 24, 2024 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX ) generated net sales of $4.120 billion during the second quarter of 2024, growing 14.5 percent on a reported basis, 16.1 percent on an operational 1 basis and 14.7 percent on an organic 2 basis, all compared to the prior year period. The company reported GAAP net income attributable to Boston Scientific common stockholders of $324 million or $0.22 per share (EPS), compared to $261 million or $0.18 per share a year ago, and achieved adjusted 3 EPS of $0.62 for the period, compared to $0.53 a year ago.
"We delivered a quarter marked by exceptional performance, reflecting our global team's relentless pursuit of innovation that is supported by strong clinical evidence and investments aligned with our strategy of category leadership," said Mike Mahoney , chairman and chief executive officer, Boston Scientific. "We remain excited about our plans for the future, and I am incredibly grateful for the commitment and winning spirit of our employees around the world."
Second quarter financial results and recent developments:
Net sales for the second quarter by business and region:
| Increase/(Decrease) | |||||||||||||
| Three Months Ended June 30, | Reported Basis | Impact of Foreign Currency Fluctuations | Operational Basis | Impact of Recent Acquisitions/ Divestitures | Organic Basis | ||||||||
| (in millions) | 2024 | 2023 | |||||||||||
| Endoscopy | $ 676 | $ 631 | 7.1 % | 1.3 % | 8.4 % | (0.5) % | 7.9 % | ||||||
| Urology | 525 | 485 | 8.2 % | 0.9 % | 9.1 % | — % | 9.1 % | ||||||
| Neuromodulation | 282 | 244 | 15.5 % | 0.7 % | 16.2 % | (12.5) % | 3.7 % | ||||||
| MedSurg | 1,483 | 1,360 | 9.0 % | 1.0 % | 10.1 % | (2.5) % | 7.6 % | ||||||
| Cardiology | 2,047 | 1,704 | 20.1 % | 1.9 % | 22.0 % | — % | 22.0 % | ||||||
| Peripheral Interventions | 590 | 535 | 10.2 % | 2.1 % | 12.3 % | (2.8) % | 9.4 % | ||||||
| Cardiovascular | 2,637 | 2,239 | 17.8 % | 1.9 % | 19.7 % | (0.7) % | 19.0 % | ||||||
| Net Sales | $ 4,120 | $ 3,599 | 14.5 % | 1.6 % | 16.1 % | (1.4) % | 14.7 % |
| Increase/(Decrease) | |||||||||
| Three Months Ended June 30, | Reported Basis | Impact of Foreign Currency Fluctuations | Operational Basis | ||||||
| (in millions) | 2024 | 2023 | |||||||
| U.S. | $ 2,466 | $ 2,110 | 16.9 % | — % | 16.9 % | ||||
| EMEA | 822 | 723 | 13.7 % | 2.5 % | 16.1 % | ||||
| APAC | 670 | 626 | 7.0 % | 6.2 % | 13.2 % | ||||
| LACA | 162 | 140 | 15.3 % | 0.4 % | 15.7 % | ||||
| Net Sales | $ 4,120 | $ 3,599 | 14.5 % | 1.6 % | 16.1 % | ||||
| Emerging Markets 4 | $ 680 | $ 592 | 14.8 % | 4.6 % | 19.3 % | ||||
| Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. | |||||||||
| Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions/divestitures are not prepared in accordance with U.S. GAAP. |
Guidance for Full Year and Third Quarter 2024
The company estimates net sales growth for the full year 2024, versus the prior year period, to be in range of approximately 13.5 to 14.5 percent on a reported basis, and 13 to 14 percent on an organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $1.34 to $1.38 and estimates adjusted EPS, excluding certain charges (credits), of $2.38 to $2.42 .
The company estimates net sales growth for the third quarter of 2024, versus the prior year period, to be in a range of approximately 13 to 15 percent on both a reported basis and organic basis. Third quarter organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of $0.36 to $0.38 and adjusted EPS, excluding certain charges (credits), of $0.57 to $0.59 .
Conference Call Information Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET . The company will webcast the call to interested parties through its website: investors.bostonscientific.com . Please see the website for details on how to access the webcast. The webcast will be available for approximately one year on the Boston Scientific website.
About Boston Scientific Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of health care. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X , formerly Twitter.
Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales; reported, operational and organic revenue growth rates; reported and adjusted EPS for the third quarter and full year 2024; our financial performance; acquisitions; clinical trials; our business plans and product performance; and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Note : Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.
Use of Non-GAAP Financial Information A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.
| CONTACT: | ||||
| Media: | Emily Anderson | Investors: | Jonathan Monson | |
| 617-515-2000 (office) | 508-683-5450 (office) | |||
| Media Relations | Investor Relations | |||
| Boston Scientific Corporation | Boston Scientific Corporation | |||
| [email protected] | [email protected] |
| BOSTON SCIENTIFIC CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||
| in millions, except per share data | 2024 | 2023 | 2024 | 2023 | |
| Net sales | $ 4,120 | $ 3,599 | $ 7,977 | $ 6,988 | |
| Cost of products sold | 1,270 | 1,058 | 2,479 | 2,098 | |
| Gross profit | 2,850 | 2,542 | 5,498 | 4,891 | |
| Operating expenses: | |||||
| Selling, general and administrative expenses | 1,446 | 1,354 | 2,810 | 2,570 | |
| Research and development expenses | 383 | 359 | 749 | 695 | |
| Royalty expense | 9 | 12 | 19 | 23 | |
| Amortization expense | 213 | 210 | 427 | 412 | |
| Intangible asset impairment charges | 276 | 57 | 276 | 57 | |
| Contingent consideration net expense (benefit) | 2 | 19 | 18 | 31 | |
| Restructuring net charges (credits) | 1 | 16 | 5 | 36 | |
| 2,330 | 2,028 | 4,303 | 3,825 | ||
| Operating income (loss) | 520 | 514 | 1,195 | 1,066 | |
| Other income (expense): | |||||
| Interest expense | (77) | (70) | (146) | (135) | |
| Other, net | (23) | (18) | (21) | (61) | |
| Income (loss) before income taxes | 420 | 426 | 1,028 | 870 | |
| Income tax expense (benefit) | 98 | 156 | 213 | 287 | |
| Net income (loss) | 322 | 270 | 815 | 584 | |
| Preferred stock dividends | — | (9) | — | (23) | |
| Net income (loss) attributable to noncontrolling interests | (2) | — | (4) | — | |
| Net income (loss) attributable to Boston Scientific common stockholders | $ 324 | $ 261 | $ 819 | $ 561 | |
| Net income (loss) per common share - basic | $ 0.22 | $ 0.18 | $ 0.56 | $ 0.39 | |
| Net income (loss) per common share - diluted | $ 0.22 | $ 0.18 | $ 0.55 | $ 0.39 | |
| Weighted-average shares outstanding | |||||
| Basic | 1,470.6 | 1,446.2 | 1,469.5 | 1,441.0 | |
| Diluted | 1,484.2 | 1,456.2 | 1,483.0 | 1,451.1 |
| BOSTON SCIENTIFIC CORPORATION NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS (Unaudited) | |||||||||||
| Three Months Ended June 30, 2024 | |||||||||||
| (in millions, except per share data) | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Attributable to Noncontrolling Interests | Net Income (Loss) Attributable to Boston Scientific Common Stockholders | Impact per Share | |
| Reported | $ 2,850 | $ 2,330 | $ 520 | $ (100) | $ 420 | $ 322 | $ — | $ (2) | $ 324 | $ 0.22 | |
| Non-GAAP adjustments: | |||||||||||
| Amortization expense | — | (213) | 213 | — | 213 | 184 | — | 2 | 182 | 0.12 | |
| Intangible asset impairment charges | — | (276) | 276 | — | 276 | 243 | — | — | 243 | 0.16 | |
| Acquisition/divestiture-related net charges (credits) | 11 | (37) | 48 | 1 | 49 | 38 | — | — | 38 | 0.03 | |
| Restructuring and restructuring- related net charges (credits) | 30 | (20) | 50 | — | 50 | 44 | — | — | 44 | 0.03 | |
| Investment portfolio net losses (gains) and impairments | — | — | — | 31 | 31 | 29 | — | — | 29 | 0.02 | |
| EU MDR implementation costs | 8 | (4) | 12 | — | 12 | 10 | — | — | 10 | 0.01 | |
| Deferred tax expenses (benefits) | — | — | — | — | — | 44 | — | — | 44 | 0.03 | |
| Adjusted | $ 2,899 | $ 1,780 | $ 1,119 | $ (68) | $ 1,051 | $ 913 | $ — | $ (0) | $ 914 | $ 0.62 | |
| Three Months Ended June 30, 2023 | |||||||||||
| (in millions, except per share data) | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Attributable to Noncontrolling Interests | Net Income (Loss) Attributable to Boston Scientific Common Stockholders | Impact per Share (1) | |
| Reported | $ 2,542 | $ 2,028 | $ 514 | $ (88) | $ 426 | $ 270 | $ (9) | $ — | $ 261 | $ 0.18 | |
| Non-GAAP adjustments: | |||||||||||
| Amortization expense | — | (210) | 210 | — | 210 | 182 | — | — | 182 | 0.12 | |
| Intangible asset impairment charges | — | (57) | 57 | — | 57 | 54 | — | — | 54 | 0.04 | |
| Acquisition/divestiture-related net charges (credits) | 16 | (106) | 122 | (4) | 118 | 175 | — | — | 175 | 0.12 | |
| Restructuring and restructuring- related net charges (credits) | 18 | (23) | 42 | — | 42 | 35 | — | — | 35 | 0.02 | |
| Investment portfolio net losses (gains) and impairments | — | — | — | (2) | (2) | 5 | — | — | 5 | 0.00 | |
| EU MDR implementation costs | 14 | (6) | 20 | — | 20 | 17 | — | — | 17 | 0.01 | |
| Deferred tax expenses (benefits) | — | — | — | — | — | 47 | — | — | 47 | 0.03 | |
| Discrete tax items | — | — | — | — | — | 1 | — | — | 1 | 0.00 | |
| Adjusted | $ 2,590 | $ 1,626 | $ 964 | $ (93) | $ 871 | $ 786 | $ (9) | $ — | $ 777 | $ 0.53 | |
| (1) For the three months ended June 30, 2023, the effect of assuming the conversion of 5.50% Mandatory Convertible Preferred Stock, Series A (MCPS) into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends , as presented within our unaudited consolidated statements of operations, for purposes of calculating net income attributable to Boston Scientific common stockholders. On June 1, 2023, all outstanding shares of MCPS automatically converted into shares of common stock. | |||||||||||
| An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
| BOSTON SCIENTIFIC CORPORATION NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS (Unaudited) | |||||||||||
| Six Months Ended June 30, 2024 | |||||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Attributable to Noncontrolling Interests | Net Income (Loss) Attributable to Boston Scientific Common Stockholders | Impact per Share | |
| Reported | $ 5,498 | $ 4,303 | $ 1,195 | $ (167) | $ 1,028 | $ 815 | $ — | $ (4) | $ 819 | $ 0.55 | |
| Non-GAAP adjustments: | |||||||||||
| Amortization expense | — | (427) | 427 | — | 427 | 369 | — | 4 | 364 | 0.25 | |
| Intangible asset impairment charges | — | (276) | 276 | — | 276 | 243 | — | — | 243 | 0.16 | |
| Acquisition/divestiture-related net charges (credits) | 22 | (90) | 112 | 0 | 112 | 115 | — | — | 115 | 0.08 | |
| Restructuring and restructuring- related net charges (credits) | 55 | (42) | 97 | — | 97 | 84 | — | — | 84 | 0.06 | |
| Investment portfolio net losses (gains) and impairments | — | — | — | 18 | 18 | 18 | — | — | 18 | 0.01 | |
| EU MDR implementation costs | 17 | (8) | 26 | — | 26 | 22 | — | — | 22 | 0.01 | |
| Deferred tax expenses (benefits) | — | — | — | — | — | 81 | — | — | 81 | 0.05 | |
| Adjusted | $ 5,592 | $ 3,461 | $ 2,131 | $ (148) | $ 1,983 | $ 1,746 | $ — | $ 1 | $ 1,745 | $ 1.18 | |
| Six Months Ended June 30, 2023 | |||||||||||
| in millions, except per share data | Gross Profit | Operating Expenses | Operating Income (Loss) | Other Income (Expense) | Income (Loss) Before Income Taxes | Net Income (Loss) | Preferred Stock Dividends | Net Income (Loss) Attributable to Noncontrolling Interests | Net Income (Loss) Attributable to Boston Scientific Common Stockholders | Impact per Share (2) | |
| Reported | $ 4,891 | $ 3,825 | $ 1,066 | $ (195) | $ 870 | $ 584 | $ (23) | $ — | $ 561 | $ 0.39 | |
| Non-GAAP adjustments: | |||||||||||
| Amortization expense | — | (412) | 412 | — | 412 | 357 | — | — | 357 | 0.25 | |
| Intangible asset impairment charges | — | (57) | 57 | — | 57 | 54 | — | — | 54 | 0.04 | |
| Acquisition/divestiture-related net charges (credits) | 27 | (145) | 172 | 6 | 178 | 242 | — | — | 242 | 0.17 | |
| Restructuring and restructuring- related net charges (credits) | 35 | (51) | 86 | — | 86 | 71 | — | — | 71 | 0.05 | |
| Investment portfolio net losses (gains) and impairments | — | — | — | 19 | 19 | 20 | — | — | 20 | 0.01 | |
| EU MDR implementation costs | 25 | (11) | 36 | — | 36 | 31 | — | — | 31 | 0.02 | |
| Deferred tax expenses (benefits) | — | — | — | — | — | 88 | — | — | 88 | 0.06 | |
| Discrete tax items | — | — | — | — | — | 26 | — | — | 26 | 0.02 | |
| Adjusted | $ 4,978 | $ 3,148 | $ 1,829 | $ (171) | $ 1,659 | $ 1,472 | $ (23) | $ — | $ 1,449 | $ 1.00 | |
| (2) For the six months ended June 30, 2023, the effect of assuming the conversion of MCPS into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating net income attributable to common stockholders. On June 1, 2023, all outstanding shares of MCPS automatically converted into shares of common stock. | |||||||||||
| An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
BOSTON SCIENTIFIC CORPORATION Q3 and FY 2024 GUIDANCE RECONCILIATIONS (Unaudited)
| Q3 2024 Estimate | Full Year 2024 Estimate | ||||
| (Low) | (High) | (Low) | (High) | ||
| Reported growth | 13.0 % | 15.0 % | 13.5 % | 14.5 % | |
| Impact of foreign currency fluctuations | 1.0 % | 1.0 % | 1.0 % | 1.0 % | |
| Operational growth | 14.0 % | 16.0 % | 14.5 % | 15.5 % | |
| Impact of acquisitions/divestitures | (1.0) % | (1.0) % | (1.5) % | (1.5) % | |
| Organic growth | 13.0 % | 15.0 % | 13.0 % | 14.0 % |
Earnings per Share
| Q3 2024 Estimate | Full Year 2024 Estimate | ||||
| (Low) | (High) | (Low) | (High) | ||
| GAAP results | $ 0.36 | $ 0.38 | $ 1.34 | $ 1.38 | |
| Amortization expense | 0.12 | 0.12 | 0.48 | 0.48 | |
| Intangible asset impairment charges | — | — | 0.16 | 0.16 | |
| Acquisition/divestiture-related net charges (credits) | 0.03 | 0.03 | 0.13 | 0.13 | |
| Restructuring and restructuring-related net charges (credits) | 0.03 | 0.03 | 0.11 | 0.11 | |
| Other adjustments | 0.04 | 0.04 | 0.16 | 0.16 | |
| Adjusted results | $ 0.57 | $ 0.59 | $ 2.38 | $ 2.42 |
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share (EPS) that exclude certain charges (credits); operational net sales, which exclude the impact of foreign currency fluctuations; and organic net sales, which exclude the impact of foreign currency fluctuations as well as the impact of acquisitions and divestitures with less than a full period of comparable net sales. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States and should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Further, other companies may calculate these non-GAAP financial measures differently than we do, which may limit the usefulness of those measures for comparative purposes.
To calculate adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share, we exclude certain charges (credits) from GAAP net income and GAAP net income attributable to Boston Scientific common stockholders, which include amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio net losses (gains) and impairments, restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), EU MDR implementation costs, debt extinguishment net charges, deferred tax expenses (benefits) and certain discrete tax items. Amounts are presented after-tax using the company's effective tax rate, unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate." Please refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission or Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in any Quarterly Report on Form 10-Q that we have filed or will file thereafter for an explanation of each of these adjustments and the reasons for excluding each item.
The GAAP financial measures most directly comparable to adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share are GAAP net income (loss), GAAP net income (loss) attributable to Boston Scientific common stockholders and GAAP net income (loss) per common share – diluted, respectively.
To calculate operational net sales growth rates, which exclude the impact of foreign currency fluctuations, we convert actual net sales from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior periods. To calculate organic net sales growth rates, we also remove the impact of acquisitions and divestitures with less than a full period of comparable net sales. The GAAP financial measure most directly comparable to operational net sales and organic net sales is net sales reported on a GAAP basis.
Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP financial measure are included in the accompanying schedules.
SOURCE Boston Scientific Corporation