Boston Scientific Announces Results for Fourth Quarter and Full Year 2023
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Insights
The financial performance of Boston Scientific Corporation reflects a robust growth trajectory, with net sales increasing significantly both quarterly and annually. The reported 14.9 percent growth in Q4 and 12.3 percent for the full year are substantial, exceeding typical single-digit growth rates often seen in mature industries. The differentiation between reported, operational and organic growth rates indicates a healthy underlying business performance, adjusting for currency fluctuations (operational) and excluding the impact of acquisitions and divestitures (organic).
From a shareholder perspective, the increase in GAAP net income and EPS represents a strong year-over-year improvement, which could positively influence investor sentiment and stock valuation. The adjusted EPS figures, which exclude one-time items and give a more normalized view of profitability, also show a notable increase. This is indicative of improved operational efficiency or successful integration of acquisitions, which can be a signal of competent management and a promising outlook for future earnings stability.
Looking at the medical device industry, Boston Scientific's growth outpaces the average industry growth rate, suggesting a competitive edge or successful product launches. The double-digit organic growth implies that the company is expanding its market share or experiencing increased demand for its products, which could be due to innovation, regulatory approvals, or greater market penetration. This is particularly significant as organic growth is often harder to achieve for established companies in this sector, which are typically reliant on acquisitions for substantial growth spurts.
Investors should also consider the company's future potential based on its current performance. Strong sales growth can fuel further R&D investment, leading to new product pipelines and potential market expansion. However, it's important to monitor whether this growth is sustainable and if the company maintains its profit margins as it scales. Any signs of decelerating growth or margin contraction might warrant a closer examination of the company's strategy and market conditions.
The substantial growth reported by Boston Scientific may also reflect broader economic trends, such as increased healthcare spending or favorable demographic shifts, such as an aging population requiring more medical interventions. The company's ability to grow operationally across different geographies suggests resilience to economic fluctuations and potential currency volatility. The strong financial performance could be a bellwether for the health of the medical device sector and, by extension, the healthcare industry as a whole.
In the long term, investors should consider the potential impact of economic headwinds such as inflation, which could affect both the cost of production and consumer spending power. Additionally, regulatory changes in key markets could influence the company's operational growth. Monitoring these factors will be essential for understanding the sustainability of Boston Scientific's growth and its ability to adapt to changing economic conditions.
For the full year 2023, the company generated net sales of
"I am grateful to our global team, and proud of our exceptional results in 2023," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "We are excited about our future and long-range plans as we deliver on our mission to transform patient lives."
Fourth quarter financial results and recent developments:
- Reported net sales of
$3.72 5 billion - Reported GAAP net income attributable to Boston Scientific common stockholders of
$0.34 $0.26 $0.30 $0.55 $0.49 $0.52 - Achieved the following net sales growth in each reportable segment, compared to the prior year period:
- MedSurg: 11.1 percent reported, 10.5 percent operational and 8.9 percent organic
- Cardiovascular: 13.9 percent reported, 13.8 percent operational and 13.3 percent organic
- Achieved the following net sales growth in each region, compared to the prior year period:
United States (U.S. ): 11.4 percent reported and operationalEurope ,Middle East andAfrica (EMEA): 14.0 percent reported and 11.6 percent operationalAsia-Pacific (APAC): 14.8 percent reported and 17.0 percent operationalLatin America andCanada (LACA): 20.8 percent reported and 14.6 percent operational- Emerging Markets4: 16.3 percent reported and 18.7 percent operational
- Received
U.S. Food and Drug Administration (FDA) approval of the FARAPULSE™ Pulsed Field Ablation (PFA) System for the isolation of pulmonary veins in the treatment of drug-resistant, recurrent, symptomatic, paroxysmal (i.e., intermittent) atrial fibrillation (AF). - Commenced enrollment of the AVANT GUARD clinical trial to evaluate the safety and effectiveness of the FARAPULSE PFA System as a first-line treatment for persistent AF compared to anti-arrhythmic drug therapy.
- Welcomed the presentation of data from the MANIFEST-17K registry of more than 17,000 patients treated with the FARAPULSE PFA System that reinforce the real-world safety profile of the system.
- Enrollment commenced in the LAAOS-4 global research trial, which includes both the WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device and WATCHMAN FLX Pro LAAC Device and explores if patients with AF at highest risk for stroke benefit from a combined LAAC and oral anticoagulation therapy.
- Received FDA approval for the TENACIO™ Pump, a new pump component for the AMS 700™ Inflatable Penile Prostheses, a treatment option for patients with erectile dysfunction.
- Completed the acquisition of Relievant Medsystems, Inc., a privately held medical technology company that has developed and commercialized the only
U.S. FDA-cleared system, the Intracept® Intraosseous Nerve Ablation System, for vertebrogenic pain. - Announced agreement to acquire Axonics, Inc., (Nasdaq: AXNX) a publicly traded medical technology company that offers differentiated devices to treat urinary and bowel dysfunction, subject to customary closing conditions.
1 Operational net sales growth excludes the impact of foreign currency fluctuations. |
2 Organic net sales growth excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. |
3 Adjusted EPS excludes the impacts of certain charges (credits) which may include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio gains and losses, restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), European Union Medical Device Regulation (EU MDR) implementation costs, debt extinguishment charges, deferred tax expenses (benefits) and discrete tax items. |
4 Periodically, we assess our list of Emerging Markets countries, and effective January 1, 2023, modified our list to include all countries except |
Fourth quarter net sales by business and region:
Increase/(Decrease) | |||||||||||||
Three Months Ended | Reported | Impact of | Operational | Impact of | Organic | ||||||||
(in millions) | 2023 | 2022 | |||||||||||
Endoscopy | $ 645 | $ 571 | 12.9 % | (0.7) % | 12.2 % | (1.4) % | 10.8 % | ||||||
Urology | 527 | 477 | 10.5 % | (0.5) % | 9.9 % | — % | 9.9 % | ||||||
Neuromodulation | 269 | 249 | 8.0 % | (0.5) % | 7.5 % | (4.9) % | 2.6 % | ||||||
MedSurg | 1,441 | 1,297 | 11.1 % | (0.6) % | 10.5 % | (1.6) % | 8.9 % | ||||||
Cardiology | 1,751 | 1,529 | 14.5 % | (0.3) % | 14.2 % | — % | 14.2 % | ||||||
Peripheral Interventions | 533 | 476 | 12.1 % | 0.1 % | 12.2 % | (2.1) % | 10.2 % | ||||||
Cardiovascular | 2,285 | 2,005 | 13.9 % | (0.2) % | 13.8 % | (0.5) % | 13.3 % | ||||||
3,725 | 3,302 | 12.8 % | (0.4) % | 12.5 % | (0.9) % | 11.6 % | |||||||
Other5 | — | (60) | (100.0) % | — % | (100.0) % | — % | (100.0) % | ||||||
Net Sales | $ 3,725 | $ 3,242 | 14.9 % | (0.4) % | 14.5 % | (0.9) % | 13.6 % | ||||||
Increase/(Decrease) | |||||||||||||
Three Months Ended | Reported | Impact of | Operational Basis | ||||||||||
(in millions) | 2023 | 2022 | |||||||||||
$ 2,213 | $ 1,986 | 11.4 % | — % | 11.4 % | |||||||||
EMEA | 749 | 657 | 14.0 % | (2.4) % | 11.6 % | ||||||||
APAC | 616 | 536 | 14.8 % | 2.2 % | 17.0 % | ||||||||
LACA | 148 | 122 | 20.8 % | (6.2) % | 14.6 % | ||||||||
3,725 | 3,302 | 12.8 % | (0.4) % | 12.5 % | |||||||||
Other5 | — | (60) | (100.0) % | — % | (100.0) % | ||||||||
Net Sales | $ 3,725 | $ 3,242 | 14.9 % | (0.4) % | 14.5 % | ||||||||
Emerging Markets4 | $ 595 | $ 511 | 16.3 % | 2.4 % | 18.7 % | ||||||||
5 In 2022, reflects unplanned reserves established in connection with the activation of the Italian government payback provision, aimed at rationalizing public spending and requiring medical device companies to pay back a portion of spend exceeding allocated health care budgets. In 2023, these sales reserves were allocated to reportable segments. |
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. |
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions/divestitures are not prepared in accordance with GAAP. |
Full year net sales by business and region:
Increase/(Decrease) | |||||||||||||
Year Ended December 31, | Reported | Impact of | Operational | Impact of | Organic | ||||||||
(in millions) | 2023 | 2022 | |||||||||||
Endoscopy | $ 2,482 | $ 2,221 | 11.7 % | 0.6 % | 12.3 % | (1.2) % | 11.1 % | ||||||
Urology | 1,964 | 1,773 | 10.8 % | 0.4 % | 11.1 % | — % | 11.1 % | ||||||
Neuromodulation | 976 | 917 | 6.4 % | 0.3 % | 6.7 % | (1.3) % | 5.3 % | ||||||
MedSurg | 5,422 | 4,911 | 10.4 % | 0.4 % | 10.8 % | (0.8) % | 10.0 % | ||||||
Cardiology | 6,709 | 5,932 | 13.1 % | 0.9 % | 14.0 % | (0.5) % | 13.6 % | ||||||
Peripheral Interventions | 2,110 | 1,899 | 11.1 % | 1.4 % | 12.6 % | (1.6) % | 10.9 % | ||||||
Cardiovascular | 8,819 | 7,831 | 12.6 % | 1.1 % | 13.7 % | (0.7) % | 12.9 % | ||||||
14,240 | 12,742 | 11.8 % | 0.8 % | 12.6 % | (0.8) % | 11.8 % | |||||||
Other5 | — | (60) | (100.0) % | — % | (100.0) % | — % | (100.0) % | ||||||
Net Sales | $ 14,240 | $ 12,682 | 12.3 % | 0.8 % | 13.1 % | (0.8) % | 12.3 % | ||||||
Increase/(Decrease) | |||||||||||||
Year Ended December 31, | Reported | Impact of | Operational Basis | ||||||||||
(in millions) | 2023 | 2022 | |||||||||||
$ 8,425 | $ 7,632 | 10.4 % | — % | 10.4 % | |||||||||
EMEA | 2,856 | 2,526 | 13.1 % | (0.2) % | 12.9 % | ||||||||
APAC | 2,400 | 2,116 | 13.4 % | 5.7 % | 19.1 % | ||||||||
LACA | 560 | 469 | 19.3 % | (2.4) % | 16.9 % | ||||||||
14,240 | 12,742 | 11.8 % | 0.8 % | 12.6 % | |||||||||
Other5 | — | (60) | (100.0) % | — % | (100.0) % | ||||||||
Net Sales | $ 14,240 | $ 12,682 | 12.3 % | 0.8 % | 13.1 % | ||||||||
Emerging Markets4 | $ 2,310 | $ 1,968 | 17.3 % | 4.5 % | 21.9 % | ||||||||
Amounts may not add due to rounding. Growth rates are based on actual, non-rounded amounts and may not recalculate precisely. |
Net sales growth rates that exclude the impact of foreign currency fluctuations and/or the impact of acquisitions/divestitures are not prepared in accordance with |
Guidance for Full Year and First Quarter 2024
The company estimates net sales growth for the full year 2024, versus the prior year period, to be in a range of approximately 8.5 to 9.5 percent on a reported basis, and approximately 8 to 9 percent on an organic basis. Full year organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of
The company estimates net sales growth for the first quarter of 2024, versus the prior year period, to be in a range of approximately 7.5 to 9.5 percent on a reported basis, and approximately 7 to 9 percent on an organic basis. First quarter organic net sales guidance excludes the impact of foreign currency fluctuations and net sales attributable to acquisitions and divestitures for which there are less than a full period of comparable net sales. The company estimates EPS on a GAAP basis in a range of
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 8:00 a.m. ET. The company will webcast the call to interested parties through its website: investors.bostonscientific.com. Please see the website for details on how to access the webcast. The webcast will be available for approximately one year on the Boston Scientific website.
About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of health care. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend," and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our expected net sales; reported, operational and organic revenue growth rates; reported and adjusted EPS for the first quarter and full year 2024; our financial performance; acquisitions; clinical trials; our business plans and product performance; and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.
Risks and uncertainties that may cause such differences include, among other things: economic conditions, including the impact of foreign currency fluctuations; future
Note: Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.
Use of Non-GAAP Financial Information
A reconciliation of the company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the company's use of these non-GAAP financial measures, is included in the exhibits attached to this press release.
CONTACT: | |||||
Media: | Emily Anderson | Investors: | Lauren Tengler | ||
617-515-2000 (office) | 508-683-4479 (office) | ||||
Media Relations | Investor Relations | ||||
Boston Scientific Corporation | Boston Scientific Corporation | ||||
BOSTON SCIENTIFIC CORPORATION | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Unaudited) | |||||
Three Months Ended December 31, | Year Ended December 31, | ||||
in millions, except per share data | 2023 | 2022 | 2023 | 2022 | |
Net sales | $ 3,725 | $ 3,242 | $ 14,240 | $ 12,682 | |
Cost of products sold | 1,146 | 1,011 | 4,345 | 3,956 | |
Gross profit | 2,579 | 2,231 | 9,896 | 8,727 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 1,379 | 1,163 | 5,190 | 4,520 | |
Research and development expenses | 363 | 330 | 1,414 | 1,323 | |
Royalty expense | 12 | 13 | 46 | 47 | |
Amortization expense | 208 | 199 | 828 | 803 | |
Intangible asset impairment charges | — | — | 58 | 132 | |
Contingent consideration net expense (benefit) | 14 | (33) | 58 | 35 | |
Restructuring net charges (credits) | 19 | 6 | 69 | 24 | |
Litigation-related net charges (credits) | — | 131 | (111) | 173 | |
Loss (gain) on disposal of businesses and assets | — | 22 | — | 22 | |
1,995 | 1,830 | 7,553 | 7,078 | ||
Operating income (loss) | 584 | 402 | 2,343 | 1,649 | |
Other income (expense): | |||||
Interest expense | (65) | (64) | (265) | (470) | |
Other, net | (14) | 58 | (93) | (38) | |
Income (loss) before income taxes | 505 | 396 | 1,985 | 1,141 | |
Income tax expense (benefit) | 1 | 256 | 393 | 443 | |
Net income (loss) | $ 504 | $ 140 | $ 1,592 | $ 698 | |
Preferred stock dividends | — | (14) | (23) | (55) | |
Net income (loss) attributable to noncontrolling interests | (0) | — | (1) | — | |
Net income (loss) attributable to Boston Scientific | $ 504 | $ 126 | $ 1,570 | $ 642 | |
Net income (loss) per common share - basic | $ 0.34 | $ 0.09 | $ 1.08 | $ 0.45 | |
Net income (loss) per common share - diluted | $ 0.34 | $ 0.09 | $ 1.07 | $ 0.45 | |
Weighted-average shares outstanding | |||||
Basic | 1,465.3 | 1,432.7 | 1,453.0 | 1,430.5 | |
Diluted | 1,476.9 | 1,442.4 | 1,463.5 | 1,439.7 | |
BOSTON SCIENTIFIC CORPORATION | |||||||||
NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS | |||||||||
(Unaudited) | |||||||||
Three Months Ended December 31, 2023 | |||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income | Net | Preferred | Net Income | Impact |
Reported | $ 2,579 | $ 1,995 | $ 584 | $ (79) | $ 505 | $ 504 | $ — | $ 504 | $ 0.34 |
Non-GAAP adjustments: | |||||||||
Amortization expense | — | (208) | 208 | — | 208 | 178 | — | 176 | 0.12 |
Acquisition/divestiture-related net | 9 | (120) | 129 | (0) | 129 | 54 | — | 54 | 0.04 |
Restructuring and restructuring-related | 22 | (30) | 52 | — | 52 | 43 | — | 43 | 0.03 |
Litigation-related net charges (credits) | — | — | — | — | — | (1) | — | (1) | (0.00) |
Investment portfolio net losses (gains) | — | — | — | (0) | (0) | 2 | — | 2 | 0.00 |
EU MDR implementation costs | 11 | (5) | 16 | — | 16 | 14 | — | 14 | 0.01 |
Deferred tax expenses (benefits) | — | — | — | — | — | 44 | — | 44 | 0.03 |
Discrete tax items | — | — | — | — | — | (18) | — | (18) | (0.01) |
Adjusted | $ 2,621 | $ 1,631 | $ 990 | $ (79) | $ 911 | $ 819 | $ — | $ 817 | $ 0.55 |
Three Months Ended December 31, 2022 | |||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income | Net | Preferred | Net Income | Impact |
Reported | $ 2,231 | $ 1,830 | $ 402 | $ (6) | $ 396 | $ 140 | $ (14) | $ 126 | $ 0.09 |
Non-GAAP adjustments: | |||||||||
Amortization expense | — | (199) | 199 | — | 199 | 175 | — | 175 | 0.12 |
Acquisition/divestiture-related net | 24 | (29) | 53 | (44) | 9 | 59 | — | 59 | 0.04 |
Restructuring and restructuring-related | 16 | (12) | 28 | — | 28 | 25 | — | 25 | 0.02 |
Litigation-related net charges (credits) | — | (131) | 131 | — | 131 | 101 | — | 101 | 0.07 |
Investment portfolio net losses (gains) | — | — | — | (38) | (38) | (32) | — | (32) | (0.02) |
EU MDR implementation costs | 13 | (6) | 19 | — | 19 | 17 | — | 17 | 0.01 |
Deferred tax expenses (benefits) | — | — | — | — | — | 42 | — | 42 | 0.03 |
Discrete tax items | — | — | — | — | — | 129 | — | 129 | 0.09 |
Adjusted | $ 2,285 | $ 1,452 | $ 833 | $ (88) | $ 745 | $ 656 | $ (14) | $ 642 | $ 0.45 |
(1) For the three months ended December 31, 2022 the effect of assuming the conversion of | |||||||||
An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. | |||||||||
BOSTON SCIENTIFIC CORPORATION | |||||||||
NON-GAAP NET INCOME AND NET INCOME PER SHARE RECONCILIATIONS | |||||||||
(Unaudited) | |||||||||
Year Ended December 31, 2023 | |||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income | Net | Preferred | Net Income | Impact |
Reported | $ 9,896 | $ 7,553 | $ 2,343 | $ (358) | $ 1,985 | $ 1,592 | $ (23) | $ 1,570 | $ 1.07 |
Non-GAAP adjustments: | |||||||||
Amortization expense | — | (828) | 828 | — | 828 | 713 | — | 709 | 0.48 |
Intangible asset impairment charges | — | (58) | 58 | — | 58 | 54 | — | 54 | 0.04 |
Acquisition/divestiture-related net | 53 | (314) | 367 | 6 | 373 | 352 | — | 352 | 0.24 |
Restructuring and restructuring-related | 77 | (107) | 185 | — | 185 | 156 | — | 156 | 0.11 |
Litigation-related net charges (credits) | — | 111 | (111) | — | (111) | (88) | — | (88) | (0.06) |
Investment portfolio net losses (gains) | — | — | — | 21 | 21 | 24 | — | 24 | 0.02 |
EU MDR implementation costs | 47 | (21) | 69 | — | 69 | 59 | — | 59 | 0.04 |
Deferred tax expenses (benefits) | — | — | — | — | — | 155 | — | 155 | 0.11 |
Discrete tax items | — | — | — | — | — | 8 | — | 8 | 0.01 |
Adjusted | $ 6,335 | $ 3,738 | $ (331) | $ 3,407 | $ 3,025 | $ (23) | $ 2,999 | $ 2.05 | |
Year Ended December 31, 2022 | |||||||||
in millions, except per share data | Gross | Operating | Operating | Other | Income | Net | Preferred | Net Income | Impact |
Reported | $ 8,727 | $ 7,078 | $ 1,649 | $ (508) | $ 1,141 | $ 698 | $ (55) | $ 642 | $ 0.45 |
Non-GAAP adjustments: | |||||||||
Amortization expense | — | (803) | 803 | — | 803 | 694 | — | 694 | 0.48 |
Goodwill and Intangible asset | — | (132) | 132 | — | 132 | 102 | — | 102 | 0.07 |
Acquisition/divestiture-related net | 97 | (206) | 303 | (18) | 285 | 338 | — | 338 | 0.24 |
Restructuring and restructuring-related | 65 | (45) | 110 | — | 110 | 96 | — | 96 | 0.07 |
Litigation-related net charges (credits) | — | (173) | 173 | — | 173 | 133 | — | 133 | 0.09 |
Investment portfolio net losses (gains) | — | — | — | (30) | (30) | (28) | — | (28) | (0.02) |
EU MDR implementation costs | 46 | (25) | 71 | — | 71 | 62 | — | 62 | 0.04 |
Debt extinguishment charges | — | — | — | 194 | 194 | 149 | — | 149 | 0.10 |
Deferred tax expenses (benefits) | — | — | — | — | — | 140 | — | 140 | 0.10 |
Discrete tax items | — | — | — | — | — | 129 | — | 129 | 0.09 |
Adjusted | $ 8,935 | $ 5,694 | $ 3,241 | $ (362) | $ 2,880 | $ 2,514 | $ (55) | $ 2,459 | $ 1.71 |
(2) For the years ended December 31, 2023 and 2022, the effect of assuming the conversion of MCPS into shares of common stock was anti-dilutive, and therefore excluded from the calculation of EPS. Accordingly, GAAP net income and adjusted net income were reduced by cumulative Preferred stock dividends, as presented in our unaudited consolidated statements of operations, for purposes of calculating net income attributable to common stockholders. On June 1, 2023, all outstanding shares of MCPS automatically converted into shares of common stock. | |||||||||
An explanation of the company's use of these non-GAAP financial measures is provided at the end of this document. |
BOSTON SCIENTIFIC CORPORATION
Q1 and FY 2024 GUIDANCE RECONCILIATIONS
(Unaudited)
Net Sales
Q1 2024 Estimate | Full Year 2024 Estimate | ||||
(Low) | (High) | (Low) | (High) | ||
Reported growth | 7.5 % | 9.5 % | 8.5 % | 9.5 % | |
Impact of foreign currency fluctuations | 1.0 % | 1.0 % | 0.5 % | 0.5 % | |
Operational growth | 8.5 % | 10.5 % | 9.0 % | 10.0 % | |
Impact of acquisitions/divestitures | (1.5) % | (1.5) % | (1.0) % | (1.0) % | |
Organic growth | 7.0 % | 9.0 % | 8.0 % | 9.0 % | |
Earnings per Share
Q1 2024 Estimate | Full Year 2024 Estimate | ||||
(Low) | (High) | (Low) | (High) | ||
GAAP results | $ 0.29 | $ 0.31 | $ 1.38 | $ 1.42 | |
Amortization expense | 0.12 | 0.12 | 0.48 | 0.48 | |
Acquisition/divestiture-related net charges (credits) | 0.03 | 0.03 | 0.10 | 0.10 | |
Restructuring and restructuring-related net charges (credits) | 0.02 | 0.02 | 0.11 | 0.11 | |
Other adjustments | 0.04 | 0.04 | 0.16 | 0.16 | |
Adjusted results | $ 0.50 | $ 0.52 | $ 2.23 | $ 2.27 | |
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share (EPS) that exclude certain charges (credits); operational net sales, which exclude the impact of foreign currency fluctuations; and organic net sales, which exclude the impact of foreign currency fluctuations as well as the impact of acquisitions and divestitures with less than a full period of comparable net sales. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in
To calculate adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share, we exclude certain charges (credits) from GAAP net income and GAAP net income attributable to Boston Scientific common stockholders, which include amortization expense, goodwill and intangible asset impairment charges, acquisition/divestiture-related net charges (credits), investment portfolio gains and losses, restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), EU MDR implementation costs, debt extinguishment charges, deferred tax expenses (benefits) and discrete tax items. Amounts are presented after-tax using the company's effective tax rate, unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate." Please refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report filed on Form 10-K filed with the Securities and Exchange Commission or Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in any Quarterly Report on Form 10-Q that we have filed or will file thereafter for an explanation of each of these adjustments and the reasons for excluding each item.
The GAAP financial measures most directly comparable to adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders and adjusted net income (loss) per share are GAAP net income (loss), GAAP net income (loss) attributable to Boston Scientific common stockholders and GAAP net income (loss) per common share – diluted, respectively.
To calculate operational net sales growth rates, which exclude the impact of foreign currency fluctuations, we convert actual net sales from local currency to
Reconciliations of each of these non-GAAP financial measures to the corresponding GAAP financial measure are included in the accompanying schedules.
Management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors and to establish operational goals and forecasts that are used in allocating resources. In addition, management uses these non-GAAP financial measures to further its understanding of the performance of our operating segments. The adjustments excluded from our non-GAAP financial measures are consistent with those excluded from our operating segments' measures of net sales and profit or loss. These adjustments are excluded from the segment measures reported to our chief operating decision maker that are used to make operating decisions and assess performance.
We believe that presenting adjusted net income (loss), adjusted net income (loss) attributable to Boston Scientific common stockholders, adjusted net income (loss) per share, operational net sales growth rates and organic net sales growth rates, in addition to the corresponding GAAP financial measures, provides investors greater transparency to the information used by management for its operational decision-making and allows investors to see our results "through the eyes" of management. We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance.
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SOURCE Boston Scientific Corporation
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