Boston Scientific ((BSX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Boston Scientific’s recent earnings call showcased a robust positive sentiment, highlighting significant sales and EPS growth. The company’s success was largely attributed to key products like WATCHMAN and EP, although challenges were noted in the EMEA region and certain product lines due to operational disruptions and market-specific headwinds.
Exceeding Revenue and EPS Expectations
The company reported an impressive 19% growth in total operational sales and a 15% increase in organic sales, surpassing the guidance of 12% to 14%. Additionally, the Q3 adjusted EPS reached $0.75, marking a 19% growth and exceeding the guidance range of $0.70 to $0.72.
Strong Regional Growth
Boston Scientific experienced substantial regional growth, with U.S. operational growth at 27%, driven by strong performances in Cardiovascular, Endoscopy, and Neuromodulation. The Asia Pacific region also saw a 17% operational growth, led by Japan and China.
WATCHMAN and EP Success
The WATCHMAN product line demonstrated remarkable success, growing by 35% this quarter and treating over 600,000 patients. Similarly, EP sales surged by 63%, with the FARAPULSE technology seeing strong adoption.
Improved Full Year Guidance
The company raised its full-year 2025 adjusted EPS guidance to $3.02 to $3.04, representing a growth of 20% to 21%. The full-year organic revenue growth guidance was also increased to approximately 15.5%.
EMEA Decline Due to Transient Headwinds
The EMEA region faced a 2% operational decline, primarily due to the discontinuation of the ACURATE valve and challenges with ERP system upgrades, which resulted in a $30 million backorder.
Urology Growth Challenges
While Urology sales grew 5% organically, the performance of Axonics was below expectations due to commercial disruptions.
Impact of China VBP
Peripheral interventions experienced low single-digit declines in arterial sales due to the China Volume-Based Procurement (VBP) initiative.
Forward-Looking Guidance
Looking ahead, Boston Scientific is guiding for 11% to 13% organic growth in Q4 2025, which would elevate the full-year 2025 guidance to approximately 15.5%. Despite the challenges faced in the EMEA region, the company anticipates improved backorder management in Q4.
In conclusion, Boston Scientific’s earnings call reflected a strong positive sentiment, driven by impressive sales and EPS growth. While challenges were noted in certain regions and product lines, the company’s strategic initiatives and robust product performance, particularly in the U.S. and Asia Pacific, provide a promising outlook for future growth.