Boston Scientific Corporation (NYSE:BSX) Q2 2023 Earnings Call Transcript

We also have a very strong clinical trial cadence with our persistent trial advantage, which is enrolling very quickly in other trials that we’ve announced as well as ongoing enhancements of the portfolio. So we have the R&D to continue to strengthen the portfolio, the clinical science studies to continue to advance it, and it’s the fastest growing — one of the fastest-growing fields along with WATCHMAN in MedTech, where we have a very low share. We know it’s a very competitive market, but we feel we have many advantages with FARAPULSE and really driving the clinical data in this field and we also have the commercial infrastructure to exploit the opportunity. So we’re very bullish on it, and we’re looking forward to the ADVENT release.

Operator: Our next question comes from Danielle Antalffy with UBS. Please go ahead.

Danielle Antalffy: Good morning, everyone. Thanks so much for taking the question and congrats to Maulik. He was always a pleasure to work with, if you could pass along my best to him. I’d appreciate it. Thank you so much. And my question is really around just thinking about the back half of the year top line growth guidance. It does organically move higher. And I just want to make sure I understand all the puts and takes there. Obviously, back half of the year does get a little bit tougher from a comp perspective on an organic basis, but does reflect some deceleration. I want to basically understand how much of this is just prudent conservatism on your part, which you guys tend to do versus some real product driven or business driven things we need to consider when looking at the back half? Thanks so much.

Dan Brennan: Sure, Danielle. I think I can take that one. If you look at the second half, take the full year of 10% to 11%, which I’m super excited about. I mean they have a fully double-digit range for the full year for organic revenue growth is exciting and I’m proud of that. And when you look at the second half, the guidance we’ve given for the third quarter is 7% to 9%, so 8% at the midpoint. And then the implied is 7% to 9% for the fourth quarter to get to that, coupled with the first half performance that’s what gets you to that 10% to 11% full year result. And I think that’s appropriate and prudent guidance with where we are the comps, they’re a little harder in the second half. I think it’s like 100 basis points harder in the second half than they are in the first half.

But overall, I think that 7% to 9% is appropriate, prudent for the second half. And if it gets us to that 10% to 11% for the full year, I think that will be a really successful year, coupled with 80 basis points of margin expansion and EPS growth of 15% to 17%, adjusted EPS for the year, I’d call that a pretty good year for the company.

Danielle Antalffy: Great. Thanks so much, Dan.

Dan Brennan: Sure.

Operator: Our next question comes from Matt Taylor with Jefferies. Please go ahead.

Matthew Taylor: Hi. Good morning, and thanks for taking the question. Dan, I had one more conceptually on margins, I guess. I wanted to understand some of the key puts and takes for margin expansion going forward. And specifically, I think a lot of investors are focused on inflation kind of abating and the potential for you to get savings on things like freight and lower component costs. Do you think that we could see any of that be good guide (ph) for margins in ’24 and beyond, and maybe just speak to the high-level factors there, if you could?