Boston Scientific Shares Sink on Weak First-Quarter Guidance

The stock tumbled 17% to $75.91 during morning trading, marking its most significant percentage drop in more than 25 years. The sell-off extends a difficult period for the Massachusetts-based company, which has seen its market value erode by 27% over the past twelve months.

Conservative Outlook Rattles Investors

The primary catalyst for the decline was the company’s guidance for the first quarter. Boston Scientific projected organic net sales growth between 8.5% and 10%, while forecasting adjusted earnings per share in the range of 78 cents to 80 cents. According to FactSet data, analysts had been positioned for growth at the top end of that range, specifically expecting 9.8% organic growth and earnings of 80 cents per share.

This cautious outlook tempered the impact of a solid fourth-quarter performance. The company reported a net profit of $672 million, or 45 cents per share, an improvement over the $566 million recorded during the same period last year. On an adjusted basis, earnings reached 80 cents per share, edging past the 78 cents anticipated by the market. Total revenue for the quarter rose to $5.29 billion, slightly ahead of the $5.28 billion consensus.

Management offered a more resilient view for the full year, estimating organic sales growth of 10% to 11% and adjusted earnings between $3.43 and $3.49 per share. While these figures largely align with analyst expectations of $3.47 per share, the immediate pressure on first-quarter margins appeared to weigh more heavily on investor sentiment.