No bad stock

Boston Scientific Corporation
CEO : Mr. Michael F. Mahoney

Quarterly earnings growth(YoY,%)

Mike Mahoney says,

Q4 2022 Earnings Report Summary

• Excluding the one-time Italy reserve, growth is at +9%
• High-end sales and EPS
• Delivered top-tier revenue growth
• Improved margins in 2022

2023 Guidance

• 6%-8% guidance for the full year
• Expect a little bit of a headwind on the CRM side
• China is expected to deliver excellent double-digit growth but potentially not as fast as in ’22

Dan Brennan says,

Macroeconomic environment and Headwinds

• The 375 headwind seen in 2022 is expected to remain similar in 2023 due to the macroeconomic environment.
• The supply chain organization has been high-performing and is expected to continue to be so.

Analysis of 2023

• The annual operating plan process and guidance preparation process have detailed the analysis of 2023.
• The supply of materials and the cost of materials is still uncertain and choppy.
• Freight costs are expected to be less as fuel prices and oil prices are coming down.
• The direct labor piece is expected to annualize in 2023.

Prudent Guidance

• The guidance in February assumes a similar headwind to last year for a prudent course.
• The macroeconomic help in 2023 is uncertain, and there is no expectation of getting a lot of it.
• It would be great to get help, but it is best to prepare without it.

Q & A sessions,

Strong Performance of Urology and Endoscopy Businesses

• The urology business has shown strong global performance and is growing faster in the US, with extensive investments made in commercial, R&D, and acquisitions.
• Endoscopy is also expected to have similar results over the next few years, and the integration of Lumenis has been successful.

Headwinds and Tailwinds for Margin Improvement

• Headwinds include a tougher comp than normal, lower growth in China, and CRM growth more in line with the market in 2023.
• Tailwinds include strong momentum across businesses, potential growth in EP in Europe and Japan, and the success of products like WATCHMAN and ACURATE neo2.
• The company expects to have a strong year in EP, depending on when cryo gets approved in the US.

Growth and Market Share of WATCHMAN

• WATCHMAN grew 24% for the full year, and the company expects 25% growth in 2023.
• The procedure is profitable for hospitals and has a leading platform, and the next-gen WATCHMAN platform is expected to come out in about a year.
• ACURATE neo2 is doing extremely well in Europe and is expected to be approved in the US in 2024.

Potential Impact on P&L

• The company expects a 6-8% healthy top line, with leverage opportunities throughout the P&L.
• Gross margin may have a slight headwind from FX, but the company still expects it to increase through volume improvement programs and R&D efficiencies.
• The goal is to have a 50 basis points contribution to the P&L on top of the 2022 results, excluding the Italian sales reserve.