Boston Scientific(US:BSX)2025-10-22 13:00Financial Data and Key Metrics Changes - In Q3 2025, total company operational sales grew 19% and organic sales grew 15%, exceeding the guidance range of 12% to 14% [6][27] - Q3 adjusted EPS was $0.75, a 19% increase, surpassing the guidance range of $0.70 to $0.72 [6][27] - Adjusted operating margin for Q3 was 28%, an increase of 80 basis points year-over-year [27][28] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and global stone management franchise [10] - Endoscopy sales increased by 9%, with double-digit growth in key products [12] - Neuromodulation sales grew 9%, supported by strong performance in the brain franchise [12] - Peripheral Interventions sales grew 16% operationally and 6% organically, with low single-digit growth in arterial business impacted by China VBP [14] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, with strong performance across cardiovascular businesses, endoscopy, and neuromodulation [8] - Europe, Middle East, and Africa (EMEA) saw a decline of 2% operationally due to specific headwinds, but excluding these, growth would have been in high single digits [8] - Asia Pacific grew 17% operationally, led by strong growth in Japan and China [9] Company Strategy and Development Direction - The company is focused on expanding its innovative portfolio and maintaining above-market growth, with a full-year organic growth guidance raised to approximately 15.5% [7][30] - The acquisition of Nalu Medical is expected to enhance the company's portfolio in the pain management space [13][92] - The company aims to be market share leaders in electrophysiology (EP) and continues to invest in innovative solutions to drive growth [24][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained above-market growth, particularly in the U.S. and China, despite challenges in EMEA [8][46] - The company anticipates continued strong performance in the WATCHMAN market, projecting approximately 20% growth over the long-range plan [39][50] - Management noted that there are no signals of procedural pull-forward due to external pressures, indicating consistent demand [44] Other Important Information - The company expects full-year 2025 reported revenue growth of approximately 20%, with operational revenue growth of about 19% [30] - Adjusted gross margin for Q3 was 71%, reflecting a 60 basis point improvement year-over-year [28] - Free cash flow for Q3 was $1,163 million, with expectations of approximately $3,500 million for the full year [29] Q&A Session Summary Question: Is WATCHMAN a key growth driver? - Management confirmed that WATCHMAN is a significant growth driver, with expectations of continued market expansion and strong adoption rates [36][39] Question: What is the outlook for the China business? - Management indicated that the China business is performing well, with mid-teens growth expected to continue despite VBP pressures [42][46] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming product cycle, including the Denali platform and leadless pacemaker, which are expected to enhance growth in the CRM segment [98][100] Question: What is the impact of the $30 million back order? - The back order primarily affected the MedSurg and Peripheral Interventions businesses, but management expects it to normalize by the end of the year [85][86]