Boston Scientific Clocks Strong Q1 Earnings As Elective Surgeries Recover, Boosts FY23 Outlook

Boston Scientific Corp BSX generated Q1 revenues of $3.39 billion, beating the Wall Street estimate of $3.16 billion and the management growth estimate of 3%-5%.

Sales increased 12% Y/Y on a reported basis, 14.9% on an operational basis, and 14% on an organic basis.

The company achieved an adjusted EPS of $0.47, beating the consensus of $0.43 and management estimate of $0.42-$0.44.

Revenues from MedSurg increased 11% to $1.28 billion (13.4% organic), and the Cardiovascular segment generated $2.11 billion, +12.7% (14.4% organic).

The adjusted gross margin remained the same at around 70%, while the adjusted operating margin was 26%.

M&A Rumor: As a Bloomberg report last week, Boston Scientific was exploring a possible acquisition of Shockwave Medical Inc SWAV.

Outlook: Boston Scientific estimates Q2 FY3 adjusted EPS of $0.48-$0.50 versus the consensus of $0.48.

The company expects Q2 sales growth of approximately 6.5%-8.5% (7-9% organic).

For FY23, Boston Scientific sees the FY23 adjusted EPS of $1.90-$1.96 compared to the prior guidance of $1.86-$1.93 versus the Wall Street Estimate of $1.91.

The company estimates FY23 sales growth of approximately 8.5%-10.5% on a reported basis compared to 5%-7% expected earlier and approximately 8%-10% organically vs. 6%-8% expected earlier.

Price Action: BSX shares are up 1.90 at $50.14 on the last check Wednesday.