Boston Scientific (BSX) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached $4.209 billion, up 19.4% year-over-year, with organic growth of 18.2%–18%, surpassing guidance.

• Adjusted EPS was $0.63, up 27% year-over-year and above guidance; reported EPS was $0.32.

• Strong performance driven by innovation, clinical evidence, commercial execution, and rapid adoption of new products, especially in electrophysiology and AF Solutions.

• Growth supported by recent acquisitions, including Silk Road Medical, and continued investment in portfolio and capabilities.

• David Habiger elected to the board of directors.

Financial highlights

• Q3 consolidated revenue was $4.209 billion, up 19.4% 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; 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.

• Q3 2024 SG&A expenses rose 26% to $1.562 billion; R&D expenses increased 14% to $407 million.

Outlook and guidance

• Q4 2024 organic growth guided at 14%–16%; full-year organic growth raised to ~15%.

• Q4 adjusted EPS guidance is $0.64–$0.66; full-year adjusted EPS expected at $2.45–$2.47.

• Full-year reported revenue growth expected at ~16.5%; operational revenue growth at ~17%.

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

• Sufficient liquidity and compliance with financial covenants anticipated for the next 12 months.