Boston Scientific has raised its guidance for 2024 following a third quarter that exceeded analyst expectations. The medical device manufacturer now projects a robust full-year revenue growth of 16.5%, building from 2023's revenue of $14.24 billion. This marks a significant increase from the previous forecast, which estimated revenue growth ranging from 13.5% to 14.5%.
Analysts from Capital IQ are currently projecting revenues of approximately $16.31 billion for the ongoing fiscal year. Chief Executive Mike Mahoney shared insights during a recent conference call, highlighting the positive trend across the company's diverse product portfolio, particularly emphasizing solutions for atrial fibrillation—a condition characterized by an irregular heart rhythm.
However, Mahoney noted that the company has temporarily paused one of its atrial fibrillation trials to evaluate a few unexpected observations. Despite a slight dip of 2.7% in shares during Wednesday's trading, the outlook remains optimistic. Mahoney expressed that the shift from traditional radio frequency and cryo ablation techniques towards pulsed field ablation treatments, which utilize the Farapulse system, is anticipated to surpass the company's earlier target of reaching 40% to 60% of global atrial fibrillation ablations by the year 2026. In terms of adjusted earnings per share (EPS), Boston Scientific has increased its target range for 2024 to between $2.45 and $2.47, a rise from the prior estimate of $2.38 to $2.42.
This adjustment comes in light of 2023's actual reported EPS of $2.05, with consensus expectations pointing to a normalized EPS of $2.41 for 2024. Looking ahead to the fourth quarter, the company anticipates net sales growth between 16.5% and 18.5%, as well as an adjusted EPS forecast of $0.64 to $0.66.
Wall Street is currently modeling for revenue and normalized EPS figures of $4.29 billion and $0.64, respectively, for this ongoing quarter. In the most recent third quarter, revenue surged to $4.21 billion from $3.53 billion in the same period last year, outperforming the $4.04 billion average analyst estimate recorded by Capital IQ.
Moreover, adjusted EPS during this period rose to $0.63 from $0.50 year-over-year, surpassing Wall Street's expected figure of $0.59. The cardiovascular segment experienced impressive growth, with sales climbing 25% to $2.73 billion, while the MedSurg division also reported a growth rate of about 10% to $1.48 billion.
Regionally, the United States continued to drive growth, witnessing an increase of approximately 23%..