Boston Scientific (NYSE: BSX) today reported third-quarter revenue that beat the consensus forecast on Wall Street, but it missed by a penny on earnings.
The Marlborough, Massachusetts–based interventional medical devices giant also reduced its full-year adjusted EPS outlook amid a challenging macroeconomic environment. A host of medical device companies are facing the effects of a strong dollar and continued supply chain problems.
Truist analysts described Boston Scientific’s revenue beat as very impressive. But when it came to the reduced EPS outlook, they were somewhat disappointed. “We would have thought BSX might be a bit better-positioned-than-peers to absorb [foreign exchange] EPS headwinds on the bottom line,” said Richard Newitter and other analysts at Truist.
Mike Matson at Needham & Co. kept his Buy rating: “We believe that BSX’s 3Q22 results support our view that it is more insulated from macro headwinds and can sustain higher growth than most of its peers.”
Investors reacted by sending BSX shares up more than 1% to $41.79 apiece by the close of trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 3%.
Boston Scientific earned $174 million, or 12¢ per share, off $3.17 billion in revenue for the quarter ended Sept. 30, 2022, more than halving its profits while boosting its top-line by more than 8% compared with Q3 2021.
Adjusted to exclude one-time items, the company had EPS of 43¢, a penny behind The Street. Analysts expected EPS of 44¢ on revenue of $3.13 billion.
“I’m pleased with our team’s ongoing commitment to executing our strategy, and the double-digit organic revenue growth we delivered across nearly every business,” CEO Mike Mahoney said in a news release. “Despite ongoing challenges in the macro environment, we remain focused on enhancing our portfolio and delivering strong global performance.”
Boston Scientific now expects 6.5% revenue growth in 2022. That’s the bottom end of its previous 6.5–7.5% guidance in its Q2 report. It predicts adjusted EPS of $1.71–1.74, down from the previous $1.74–1.77.
A busy Q3 for Boston Scientific
Boston Scientific scored a number of achievements in its third quarter:
- It completed the acquisition of Obsidio and its gel embolic material technology for the embolization of blood vessels in the peripheral vasculature.
- The company secured a CE Mark for its Lux-Dx insertable cardiac monitor system that a doctor places just under the skin. The FDA cleared the Lux-Dx in 2020.
- The FDA approved expanded labeling for Boston Scientific’s Watchman FLX LAAC device for stroke prevention.
- It launched its Rezūm water vapor therapy in Japan following approval from the country’s Ministry of Health, Labor and Welfare, plus a new reimbursement category. Rezūm is a non-surgical treatment for benign prostatic hyperplasia.
- In addition, the company kicked off a line extension of its Eluvia drug-eluting stent (DES). Boston Scientific says the extended line now includes the longest-length DES (150 mm) available to treat peripheral artery disease in the superficial femoral artery.