Boston Scientific (BSX) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached $4.12B, up 14.5% reported, 16.1% operational, and 14.7% organic year-over-year, driven by strong cardiovascular and electrophysiology performance, especially Farapulse adoption.

• Adjusted EPS rose to $0.62, up from $0.53, surpassing guidance; GAAP EPS was $0.22, up from $0.18.

• Most business units and regions delivered above-market growth, with innovation, clinical evidence, and strategic investments fueling momentum.

• Operational highlights include NMPA approval in China for FARAPULSE PFA System, U.S. launch of AGENT Drug-Coated Balloon, and agreement to acquire Silk Road Medical.

• For the first six months of 2024, net sales were $7.98B, up 14.1% year-over-year; adjusted net income was $1.75B ($1.18 per share).

Financial highlights

• Q2 consolidated revenue was $4.12B, up 14.5% reported and 16.1% operationally, with a 160 bps FX headwind.

• Adjusted gross margin was 70.4% (down 160 bps); reported gross margin was 69.2%.

• Adjusted operating margin was 27.2% (up 40 bps); reported operating margin was 12.6%.

• Free cash flow for Q2 was $660M; cash on hand at quarter-end was $2.9B; debt to Adjusted EBITDA was 2.44x.

• Q2 adjusted tax rate was 13.1%; effective tax rate was 23.4%.

Outlook and guidance

• Full-year 2024 organic revenue growth guidance raised to 13%-14%; reported revenue growth expected at 13.5%-14.5%, with a 100 bps FX headwind.

• Full-year adjusted EPS guidance increased to $2.38-$2.42; GAAP EPS guidance $1.34-$1.38.

• Q3 2024 guidance: net sales growth 13%-15%, adjusted EPS $0.57-$0.59, GAAP EPS $0.36-$0.38.

• Estimated FY 2024 free cash flow includes ~$800M in payments for acquisitions, restructuring, and litigation.

• Management expects to complete Silk Road Medical and Axonics acquisitions in H2 2024.