TLDR
- Boston Scientific (BSX) stock fell about 8% on Wednesday to around $41.87 after the company cut its full-year outlook.
- Q3 adjusted EPS was 73 cents and net sales rose 1.5% to $5.14 billion, a small beat on revenue.
- Full-year adjusted EPS guidance is now $3.16 to $3.18, down from $3.28 to $3.32.
- Q4 net sales are expected to fall 1% to 3%, while Wall Street had expected growth.
- A late August cyberattack caused a roughly $150 million revenue headwind and cut Q3 earnings by 7 cents a share.
Boston Scientific (BSX) stock fell about 8% on Wednesday, trading near $41.87 after closing Tuesday at $45.06. The drop came after the company cut its full-year guidance and issued a weak fourth-quarter forecast. The stock is down 53% so far this year.
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Investing.com reported the stock was down nearly 12% in pre-open trading. It later pared some of that loss during the session.
The company had given a heads-up. In September, it said it was unlikely to meet its third-quarter and full-year targets after a cyberattack in late August.
Third-quarter adjusted earnings came in at 73 cents a share, down from 75 cents a year ago. Wall Street expected 72 cents, according to FactSet. Another report cited a 75 cent consensus.
Net sales grew 1.5% to $5.14 billion. Analysts had expected $5.06 billion.
Guidance Takes the Hit
The outlook is what weighed on the stock. Boston Scientific expects fourth-quarter adjusted earnings of 77 cents to 79 cents a share. Analysts were looking for 83 cents.
Net sales are forecast to decline 1% to 3% in the fourth quarter. Wall Street had penciled in growth.
For the full year, the company now expects adjusted earnings of $3.16 to $3.18 a share. That compares with its July range of $3.28 to $3.32. The consensus was $3.22.
Organic net sales growth is expected to be about 3.75% for the year. In July, the company had guided for 5.5% to 6.5%. Analysts had expected sales of $21.16 billion, or 5.4% growth.
Adjusted operating margin fell to 16.1% in the third quarter. A year earlier it was 20.7%.
Cyberattack Fallout
The attack hit on August 25 and disrupted manufacturing, order processing and global shipments. It limited access to information systems and business applications. The company withdrew its original 2026 forecasts in September.
Management told analysts the incident created a roughly $150 million revenue headwind. It also reduced third-quarter earnings by 7 cents a share.
Chief Financial Officer Jonathan Monson said the incident caused major disruption and hurt third-quarter results. He added that the company remains focused on improving financial performance.
Executives also pointed to customer “stocking” after the attack. They expect that to cut fourth-quarter earnings by 4 cents to 5 cents a share.
Competition has also weighed on the stock. Medtronic’s Sphere-9 catheter has been gaining share in U.S. electrophysiology, putting pressure on the FARAPULSE line. Demand for WATCHMAN has stayed soft.
The broader market offered little help. The S&P 500 was up 0.15% and the Dow was up 0.22%.
Boston Scientific will not give 2027 guidance until January. Management said some of the fourth-quarter trends are expected to carry into next year. The stock was last down about 8% at $41.87.
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