Boston Scientific Corporation (BSX) Bundle
A Brief History of Boston Scientific Corporation
Boston Scientific Corporation, a leading global developer, manufacturer, and marketer of medical devices, has played a significant role in the advancement of less-invasive medical technologies since its founding in 1979.
Financial Performance Overview
As of September 30, 2024, Boston Scientific reported net sales of $4.209 billion for the third quarter, representing a 19.4% increase from $3.527 billion in the same quarter of 2023. The year-to-date net sales for the first nine months of 2024 reached $12.186 billion, up from $10.515 billion in 2023, marking a 15.9% increase.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $4.209 billion | $3.527 billion | $12.186 billion | $10.515 billion |
| Net Income | $469 million | $505 million | $1.288 billion | $1.065 billion |
| EPS (Diluted) | $0.32 | $0.34 | $0.87 | $0.73 |
Recent Strategic Developments
In 2024, Boston Scientific launched its Farapulse™ Pulsed Field Ablation System, which has seen rapid adoption following its U.S. launch. The company has also made significant acquisitions, including a majority stake in Acotec Scientific Holdings Limited and the purchase of Relievant Medsystems, Inc. and Silk Road Medical, Inc.
Operating Expenses and Profit Margins
The company reported a gross profit of $2.897 billion in Q3 2024, with a gross profit margin of 68.8%. For the first nine months of 2024, gross profit stood at $8.395 billion, reflecting a gross profit margin of 68.9%.
| Operating Expense Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Selling, General and Administrative | $1.562 billion | $1.242 billion | $4.372 billion | $3.811 billion |
| Research and Development | $407 million | $356 million | $1.156 billion | $1.051 billion |
Balance Sheet Highlights
As of September 30, 2024, Boston Scientific's total assets were valued at $38.078 billion, with total stockholders' equity amounting to $20.708 billion.
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $38,078 |
| Total Liabilities | $17,370 |
| Total Stockholders' Equity | $20,708 |
Market Challenges and Outlook
Boston Scientific has faced challenges due to global supply chain disruptions, inflation, and geopolitical tensions affecting its operations. Despite these challenges, the company remains focused on growth through innovation and strategic acquisitions, positioning itself for continued success in the medical device industry.
A Who Owns Boston Scientific Corporation (BSX)
Major Shareholders
As of 2024, Boston Scientific Corporation (BSX) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 8.32% | Institutional Investor |
| BlackRock, Inc. | 7.45% | Institutional Investor |
| State Street Corporation | 5.82% | Institutional Investor |
| Wellington Management Co. LLP | 4.90% | Institutional Investor |
| FMR LLC (Fidelity) | 4.65% | Institutional Investor |
| Other Institutional Investors | 23.12% | Various |
| Insider Ownership | 0.90% | Executives and Directors |
| Public Float | 40.84% | Individual and Other Investors |
Institutional Ownership Trends
Boston Scientific's institutional ownership has shown stability with slight fluctuations. The latest report indicates that institutional investors hold approximately 55% of the total shares outstanding. This ownership includes various mutual funds and pension funds, indicating strong confidence in the company's growth potential.
Stock Performance and Market Capitalization
As of the end of Q3 2024, Boston Scientific's stock price is approximately $67.50, translating to a market capitalization of about $112 billion. The stock has experienced a 19.4% increase in price over the past year, reflecting positive investor sentiment driven by strong financial performance and market positioning.
Recent Acquisitions and Growth Strategy
Boston Scientific has actively pursued a growth strategy through acquisitions. Recent acquisitions include:
- Relievant Medsystems, Inc. - Acquired in Q4 2023
- Silk Road Medical, Inc. - Acquired in Q1 2024
- B. Braun Medical Inc. (endoluminal vacuum therapy portfolio) - Acquired in Q1 2024
These acquisitions aim to expand Boston Scientific's product offerings and enhance its competitive edge in the medical devices market.
Insider Transactions
In 2024, insider transactions have shown a mix of selling and buying activities. Notably:
- CEO Michael F. Mahoney sold 50,000 shares at an average price of $64.00.
- COO and other executives bought back shares totaling 20,000 shares as a sign of confidence in the company's future.
Conclusion
Boston Scientific Corporation's ownership structure reflects a solid base of institutional investors, coupled with insider confidence through recent transactions. The company's strategic acquisitions and robust market performance continue to attract investor interest, positioning it strongly within the medical device sector.
Boston Scientific Corporation (BSX) Mission Statement
Boston Scientific Corporation's mission is to provide innovative medical solutions that improve the health of patients around the world. The company focuses on delivering high-quality medical devices that enhance patient outcomes while reducing healthcare costs. This mission is driven by a commitment to advancing the field of medicine through research, development, and collaboration with healthcare professionals.
Financial Overview
As of September 30, 2024, Boston Scientific reported significant financial growth. The company's net sales for the third quarter reached $4.209 billion, reflecting a 19.4 percent increase from $3.527 billion in the same quarter of 2023. This performance was primarily driven by strong demand across various product lines, including cardiology and peripheral interventions.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $4.209 billion | $3.527 billion | 19.4% |
| Net Income (Reported) | $469 million | $505 million | -7.1% |
| Net Income (Adjusted) | $937 million | $732 million | 28.0% |
| Earnings per Share (Diluted) | $0.32 | $0.34 | -5.9% |
Market Segmentation
Boston Scientific operates across multiple segments, each contributing to its overall revenue. The largest segment, Cardiology, accounted for 51 percent of total net sales in Q3 2024, with sales of $2.129 billion. This segment has shown remarkable growth, increasing by 29.2 percent year-over-year.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Cardiology | $2.129 billion | $1.647 billion | 29.2% |
| Peripheral Interventions | $602 million | $538 million | 11.8% |
| Neuromodulation | $268 million | $229 million | 17.0% |
| Urology | $532 million | $483 million | 10.3% |
| Endoscopy | $678 million | $629 million | 7.8% |
Research and Development Commitment
Boston Scientific invests heavily in research and development (R&D), underscoring its commitment to innovation in medical technology. In Q3 2024, R&D expenses totaled $407 million, representing 9.7 percent of net sales, an increase from $356 million in Q3 2023. This investment is crucial for sustaining the company's pipeline of new products.
Operational Efficiency
The company's operational efficiency is reflected in its gross profit margin, which remained stable at 68.8 percent in Q3 2024, unchanged from Q3 2023. The gross profit for the third quarter was $2.897 billion, demonstrating effective cost management amid increasing sales.
| Operating Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit | $2.897 billion | $2.426 billion |
| Gross Profit Margin | 68.8% | 68.8% |
| SG&A Expenses | $1.562 billion | $1.242 billion |
| R&D Expenses | $407 million | $356 million |
Conclusion of Financial Performance
Boston Scientific's financial performance in 2024 reflects its strategic focus on innovation and operational excellence. The company's commitment to its mission is evident in its robust growth metrics and continued investment in R&D, which positions it well for future advancements in medical technology.
How Boston Scientific Corporation (BSX) Works
Company Overview
Boston Scientific Corporation (BSX) is a global leader in the development, manufacturing, and marketing of medical devices used in various interventional medical specialties. The company focuses on less-invasive medicine, providing innovative solutions to improve patient health and reduce healthcare costs.
Financial Performance
As of September 30, 2024, Boston Scientific reported net sales of $12.186 billion for the first nine months of 2024, an increase from $10.515 billion in the same period of 2023, representing a growth of 15.9%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $4.209 billion | $3.527 billion | +19.4% |
| Net Income Attributable to Common Stockholders | $469 million | $505 million | -7.1% |
| Adjusted Net Income | $937 million | $732 million | +28.0% |
| Net Income Per Diluted Share | $0.32 | $0.34 | -5.9% |
| Gross Profit | $2.897 billion | $2.426 billion | +19.4% |
Segment Performance
Boston Scientific operates through several key segments, which include Cardiology, Urology, Neuromodulation, Endoscopy, and Peripheral Interventions.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change |
|---|---|---|---|
| Cardiology | $2.129 billion | $1.647 billion | +29.2% |
| Urology | $532 million | $483 million | +10.3% |
| Neuromodulation | $268 million | $229 million | +17.0% |
| Endoscopy | $678 million | $629 million | +7.8% |
| Peripheral Interventions | $602 million | $538 million | +11.8% |
Research and Development
Boston Scientific's commitment to innovation is reflected in its R&D investments. For the third quarter of 2024, R&D expenses totaled $407 million, representing 9.7% of net sales.
Operating Expenses
Operating expenses for Boston Scientific have been reported as follows:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling, General and Administrative | $1,562 million | $1,242 million |
| Research and Development | $407 million | $356 million |
Market Strategy and Acquisitions
Boston Scientific's growth strategy includes acquisitions to enhance its product portfolio. Recent acquisitions include Relievant Medsystems, Braun's endoluminal vacuum therapy portfolio, and Silk Road Medical. These acquisitions contributed positively to operational net sales growth in 2024.
Global Presence
Emerging markets represented 16% of Boston Scientific’s consolidated net sales during Q3 2024, demonstrating the company's strategic focus on expanding its footprint in these regions.
Conclusion on Economic Environment
Boston Scientific faces challenges including global supply chain disruptions and inflationary pressures affecting costs and availability of raw materials. The company is actively managing these risks to maintain operational efficiency and growth.
How Boston Scientific Corporation (BSX) Makes Money
Revenue Streams
Boston Scientific Corporation generates revenue primarily through the sale of medical devices across several segments, including Cardiology, Urology, Neuromodulation, Peripheral Interventions, and Endoscopy. For the first nine months of 2024, the company reported total net sales of $12.186 billion, compared to $10.515 billion in the same period of 2023, reflecting a growth of 15.9%.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Increase (%) |
|---|---|---|---|
| Cardiology | $2.129 billion | $1.647 billion | 29.2% |
| Urology | $532 million | $483 million | 10.3% |
| Neuromodulation | $268 million | $229 million | 17.0% |
| Peripheral Interventions | $602 million | $538 million | 11.8% |
| Endoscopy | $678 million | $629 million | 7.8% |
Cardiology Segment
The Cardiology segment is a key driver of Boston Scientific's revenue, accounting for approximately 50% of consolidated net sales. In 2024, net sales in this segment reached $6.048 billion for the first nine months, marking an increase of $1.090 billion, or 22.0%, from the previous year. The growth was mainly attributed to the electrophysiology business and devices like the Farapulse™ Pulsed Field Ablation System.
Urology Segment
Urology products generated $1.570 billion in net sales during the first nine months of 2024, up from $1.437 billion in 2023, a growth rate of 9.3%. This segment includes treatments for conditions such as benign prostatic hyperplasia and kidney stones.
Neuromodulation Segment
In the Neuromodulation segment, net sales were $807 million in the first nine months of 2024, compared to $708 million in the same period in 2023, representing a 14.0% increase. This growth was driven by advancements in devices for chronic pain management and neurological movement disorders.
Peripheral Interventions Segment
Peripheral Interventions net sales were $1.765 billion for the first nine months of 2024, growing by 11.9% from $1.577 billion in 2023. This segment includes products for treating peripheral arterial and venous diseases.
Endoscopy Segment
Endoscopy sales reached $1.996 billion in the first nine months of 2024, an increase of 8.7% from $1.836 billion in the same period last year. This segment focuses on devices for gastrointestinal and pulmonary conditions.
Operating Income and Expenses
Boston Scientific reported operating income of $1.928 billion for the first nine months of 2024, compared to $1.759 billion in 2023. The operating income margin for significant segments was as follows:
| Segment | Operating Income Margin (2024) | Operating Income Margin (2023) |
|---|---|---|
| MedSurg | 34.3% | 33.5% |
| Cardiovascular | 29.0% | 26.6% |
Net Income
For the first nine months of 2024, net income attributable to Boston Scientific common stockholders was $1.288 billion, or $0.87 per diluted share. This was an increase from $1.065 billion, or $0.73 per diluted share, in the same period of 2023. Adjusted net income for the first nine months of 2024 was $2.683 billion, or $1.81 per diluted share, compared to $2.181 billion, or $1.50 per diluted share, in 2023.
Research and Development Expenses
Boston Scientific continues to invest significantly in research and development (R&D), with R&D expenses amounting to $1.156 billion for the first nine months of 2024, up from $1.051 billion in 2023. This reflects a focus on innovation and product development across its business segments.
Market Position and Outlook
Boston Scientific's strong market position is supported by its diverse product portfolio and ongoing investments in R&D. The company is poised for continued growth through new product launches and strategic acquisitions, which have positively impacted its organic sales growth.
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Article updated on 8 Nov 2024
Resources:
- Boston Scientific Corporation (BSX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Boston Scientific Corporation (BSX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Boston Scientific Corporation (BSX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.