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Boston Scientific Reports 13% Q3 Sales Growth and Raises Yearly Estimates

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This morning shares of Boston Scientific traded 6% higher after the firm reported a 13.1% increase in revenue for Q3/19. The firm also raised its revenue guidance for both Q4/19 and FY/19.

Early this morning medical device maker Boston Scientific Corp. (BSX:NYSE) announced third quarter earnings results for the period ending September 30, 2019. In the report the company indicated that it achieved sales of $2.707 billion during Q3/19 which represents growth of 13.1% on a reported basis when compared to Q3/18. The company further reported GAAP earnings of $126 million or $0.09 per share in Q3/19, compared to GAAP earnings of $432 million or $0.31 per share in Q3/18 with adjusted earnings per share of $0.39 in Q3/19 compared to $0.35 in Q3/18. The firm advised that Q3/19 GAAP earnings of $0.09 per share compared to its previous guidance range of $0.23 to $0.25 per share was due to acquisition related charges in Q3/19 primarily associated with the acquisition of BTG plc.

Boston Scientific's Chairman and CEO Mike Mahoney commented, "Our third quarter results reflect accelerated growth fueled by several key product launches, excellent regional performance and the broad strength of our core portfolio, and we continue to invest in building a robust pipeline...I am proud of our global teams across Boston Scientific who continue to bring forward new clinical solutions that advance science and help improve patient lives."

The company indicated that in Q3/19 it achieved revenue growth in all segments compared to Q3/18. Specifically, the MedSurg segment increased 13.2%, Rhythm and Neuro was up 5.4%, and Cardiovascular increased 11.3%. By region, sales in the U.S. increased by 10.6%, Europe, Middle East and Africa was up 6.3%, Asia-Pacific increased 13.8% and Emerging Markets were up 16.1% in the same corresponding period.

The company pointed out that in the quarter it "commenced launch of the WATCHMAN Left Atrial Appendage Closure Device in Japan upon securing positive local reimbursement; surpassed 100,000 patient implants worldwide...the WATCHMAN device is an affordable stroke risk reduction strategy for Medicare and Medicare beneficiaries compared to warfarin."

In the report the company also adjusted its forward guidance for Q4/19 and FY/19. The company now "estimates revenue growth for Q4/19, versus Q4/18, to be in a range of approximately 13-15% on a reported basis and a growth range of approximately 8-9% on an organic basis. The company estimates earnings on a GAAP basis in a range of $0.22-0.25/share and adjusted earnings, excluding certain charges (credits), in a range of $0.42-0.45/share...The firm estimates revenue growth for the FY/19, versus FY/18, to be in a range of approximately 9-9.5% on a reported basis (compared to prior guidance of 7-8%), and to be approximately 7.5% on an organic basis (compared to prior guidance of 7-8%). The company now estimates income on a GAAP basis in a range of $0.72-0.75/share (compared to prior guidance of $0.94-0.98/share) and estimates adjusted earnings, excluding certain charges (credits), in a range of $1.55-1.58/share (compared to prior guidance of $1.54-1.58/share)."

Boston Scientific is based in Marlborough, Mass., and is a developer, manufacturer and marketer of medical devices used in a range of interventional medical specialties. The firm offers products used in the areas of Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology.

Boston Scientific has a market cap of about $53.2 billion with approximately 1.393 billion shares outstanding. BSX shares opened higher today at $40.75 (+2.57, +6.73%) over yesterday $38.18 closing price. The stock has traded between $39.77 to $41.24 per share today and currently is trading at $40.62 (+$2.44, +6.39%).


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