Boston Scientific(BSX) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q3 2024, total company operational sales grew 19% and organic sales grew 18%, exceeding the guidance range of 13% to 15% [5][17] - Adjusted EPS for Q3 was $0.63, a 27% increase, surpassing the guidance range of$ 0.57 to $0.59 [5][17] - Adjusted operating margin for Q3 was 27.2%, expanding 110 basis points year-over-year [18] Business Line Data and Key Metrics Changes - Cardiology sales grew 29%, with Interventional Cardiology Therapies growing 14% [10] - Electrophysiology sales surged 177%, driven by commercial execution and increased procedure volumes [13] - Urology sales increased by 10%, with double-digit growth in Stone Management and Prostate Health [7][8] - Endoscopy sales grew 7% organically, with strong growth in the US [8] Market Data and Key Metrics Changes - US operational sales grew 24%, with double-digit growth in six of eight business units [6] - Europe, Middle East, and Africa (EMEA) grew 14% operationally, driven by above-market performance in Electrophysiology [6] - Asia Pacific sales grew 12% operationally, with strong performance in China and Australia [7] Company Strategy and Development Direction - The company continues to focus on category leadership through innovation and clinical evidence generation [5] - Plans to close the acquisition of Axonics in Q4 2024, enhancing the Urology business [8] - The company aims to outperform markets and achieve double-digit growth in adjusted earnings per share in 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining top-tier financial performance and highlighted strong momentum across the portfolio, particularly in AF solutions [5][6] - The company anticipates continued growth driven by new product launches and expanding market share in existing accounts [46][47] Other Important Information - The company expects full-year 2024 adjusted EPS to be in the range of$ 2.45 to $2.47, representing growth of 20% to 21% [21] - The operational tax rate for Q4 is expected to be approximately 13.5% [21] Q&A Session All Questions and Answers Question: Upcoming OPTION trial and its impact - Management highlighted the positive implications of the concomitant reimbursement for WATCHMAN and FARAPULSE, emphasizing the safety and efficiency of both procedures [26][27] Question: FARAPULSE results and market share expectations - Management expressed confidence in FARAPULSE exceeding the previously communicated range of 40% to 60% of global AF ablations by 2026 due to rapid adoption by physicians [29] Question: AVANT GUARD trial observations - Management reassured that the observations from the AVANT GUARD trial were not life-threatening and emphasized confidence in the overall safety and efficacy of the FARAPULSE system [43][71] Question: Capacity and supply chain concerns - Management confirmed there are no anticipated supply shortages for FARAPULSE, despite high demand [63] Question: 2025 market growth drivers - Management identified several tailwinds for growth in 2025, including new product launches and expanding market share in existing accounts [46][47]