Boston Scientific ( NYSE: BSX ) dropped ~4% pre-market Wednesday after the health equipment maker reported Q3 2022 results and set a lower-than-expected guidance for the current quarter and the full year.
Net sales for the period exceeded Wall Street expectations to reach $3.2B after ~8% YoY growth on a reported basis as the MedSurg segment, and Cardiovascular segment added $1.2B and $2.0B in net sales with ~7% YoY and ~9% YoY growth, respectively.
Net sales from the U.S. jumped ~12% YoY to $1.9B while Europe, the Middle East, and Africa continued to stagnate, generating $585M in net sales with ~1% YoY decline following flat sales growth during the preceding quarter.
"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," Chief Executive Officer Mike Mahoney said ahead of the earnings call at 8:00 a.m. ET.
Meanwhile, gross margin dropped marginally to 69.1% from 69.3% in the prior year period, and GAAP net income fell ~57% YoY to $174M as SG&A expenses and amortization expense surged ~6% YoY and ~10% YoY to $1.1B and $202M, respectively.
The company revised the guidance to indicate~2% – ~4% YoY growth and ~6.5% YoY reported growth for Q4 2022 and the full year compared with the prior guidance of approximately 3% - 6% and 6.5% - 7.5%, respectively.
According to the consensus, Boston Scientific ( BSX ) is expected to report ~6% YoY and ~7% YoY growth for the current quarter and 2022, respectively.
The company has also updated earnings guidance for Q4 2022 and the full year, implying adj. EPS of $0.45 – $0.48 and $1.71 to $1.74 compared to the $0.49 and $1.76 in the consensus.
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Boston Scientific falls as guidance underwhelms