Boston Scientific reports strong growth in Q4

Boston Scientific, the medical device maker based in Marlborough, Massachusetts, has announced impressive results for the fourth quarter of 2023. The company's net income and sales exceeded expectations, driven by high demand for its stents and surgical hardware.

Q4 Financial Performance

Boston Scientific's fourth-quarter earnings reached $504 million, or 34 cents per share, compared to $126 million, or 9 cents per share, in the previous year. When excluding certain one-time items, the company reported earnings of 55 cents per share. This surpassed Wall Street's average estimate of 51 cents per share, as provided by FactSet.

Furthermore, fourth-quarter sales experienced a 15% growth to $3.73 billion, surpassing the mean analyst estimate of $3.59 billion provided by FactSet. The company achieved sales growth of over 10% in all regions, including Europe Middle East and Africa, Asia-Pacific, Latin America, Canada, and the U.S.

Factors Driving Growth

The increased demand for discretionary procedures in the fourth quarter played a significant role in Boston Scientific's success. Hospital chains and health insurers have observed a higher rate of Americans seeking out these procedures during this period.

Forecast for Q1 2024

Looking ahead, Boston Scientific forecasts earnings of between 29 cents and 31 cents per share for the first quarter. Excluding certain one-time items, adjusted earnings for the first quarter are expected to be in a range between 50 cents and 52 cents per share.

The company also projects sales growth of 7.5% to 9.5% for the first quarter. When excluding the impact of foreign exchange translation, organic sales growth is expected to fall within the range of 7% to 9%.

Outlook for 2024

Boston Scientific anticipates earning between $1.38 and $1.42 per share in 2024, compared to $1.07 in 2023. Adjusted earnings for the full year are projected to be between $2.23 and $2.27 per share. The company aims for sales growth of 8.5% to 9.5% in 2024, which would translate to a range between $15.45 billion and $15.59 billion. On an organic basis, Boston Scientific expects sales to grow by 8% to 9% in 2024.