Boston Scientific (BSX) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached $4.209 billion, up 19.4% year-over-year, surpassing guidance, with organic growth of 18.2% and operational growth of 19.5%.

• Adjusted EPS was $0.63, up from $0.50 in Q3 2023 and up 27% year-over-year, exceeding guidance; reported EPS was $0.32.

• Strong growth was driven by innovation, clinical evidence, commercial execution, and rapid adoption of new products, especially in electrophysiology and cardiology.

• Completed acquisition of Silk Road Medical and announced agreement to acquire Axonics, expected to close in Q4 2024.

• FDA, PMDA, and CE Mark approvals for key products, including FARAWAVE NAV Ablation Catheter and ACURATE Prime Aortic Valve System.

Financial highlights

• Q3 consolidated revenue was $4.209 billion, up 19.4% reported and 18.2% organic year-over-year; gross profit was $2.897 billion (68.8% margin).

• Adjusted gross margin was 70.4%, up 20 bps year-over-year; adjusted operating margin was 27.2%, up 110 bps.

• Free cash flow for Q3 was $822 million, up from $582 million in Q3 2023; cash on hand at quarter-end was $2.5 billion.

• Debt to Adjusted EBITDA ratio was 2.4x at quarter end; total debt as of September 30, 2024, was $10.885 billion.

• Operating income for Q3 2024 was $733 million, up from $693 million a year ago.

Outlook and guidance

• Q4 2024 net sales growth expected at 16.5%–18.5% reported, 14%–16% organic; adjusted EPS guidance $0.64–$0.66.

• Full-year 2024 net sales growth expected at ~16.5% reported and 15% organic; adjusted EPS guidance is $2.45–$2.47.

• 2025 expected to deliver double-digit adjusted EPS growth, margin improvement, and continued market outperformance.

• Estimated FY 2024 free cash flow of ~$2.2 billion, including ~$900 million in special payments.

• Guidance excludes the pending Axonics acquisition, expected to close in Q4 2024.