Boston Scientific Corporation (NYSE:BSX) stock is trading lower on Wednesday after the company issued a weaker-than-expected earnings outlook.
CEO Mike Mahoney called it “a challenging year,” but praised how the medical technology company responded to a cybersecurity incident, which reduced sales growth by 300 basis points.
Boston Scientific expects fourth-quarter adjusted earnings of 77-79 cents, below the 84-cent consensus with a Q4 sales forecast of $5.127 billion-$5.233 billion — below the consensus of $5.404 billion.
The company reported Q3 revenues of $5.138 billion on Wednesday — better than the consensus estimate of $5.046 billion, but below management guidance of $5.217 billion-$5.318 billion.
Adjusted earnings of 73 cents beat the consensus of 72 cents, but missed the management guidance of 80-82 cents.
Navigating The 2027 Trough and Long-Term Growth Initiatives
During an earnings conference call, the CEO said, “In 2026, we’ve seen that cycle turn, and those two businesses (EP and WATCHMAN franchises) are now weighing on our total company growth as we navigate competition and market dynamics.”
“We believe that 2027 will be the trough in the cycle, and we have several investments and new innovations coming over the course of the next three years that we expect will support stabilization and growth for both the EP and WATCHMAN businesses.”
“While the remaining 75% of our business has grown consistently, we anticipate there will be additional price headwinds in China in ’27, and the growth likely won’t be enough to offset the pressure from EP and WATCHMAN next year. As a result, we believe we’ll be challenged to grow sales and adjusted EPS in ’27, excluding our pending acquisition of Penumbra.”
Boston Scientific plans strategic investments and restructuring to stabilize and drive growth, aiming to unlock $25 billion in new market opportunities by 2030.
“Importantly, we expect these actions to drive meaningful improvement in both our revenue and adjusted EPS performance as we aim to exit the cycle in ’27 and return to delivering high performance in ’28, with further improvement expected in ’29,” Mahoney commented.
BSX Price Action: Boston Scientific shares were down 11.56% at $39.85 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
Photo: Shutterstock
