What happened
Boston Scientific said it lowered its sales outlook and expects a fourth quarter decline in net sales. In August, the medical device maker was hit by a cyberattack that disrupted operations worldwide, and soon after warned it would miss full year targets for net sales and adjusted earnings.
Guidance and commentary
The company now anticipates adjusted earnings for the full year in a range of $3.16 to $3.18, below the $3.23 consensus, and fourth quarter adjusted EPS between $0.77 and $0.79. It also expects fourth quarter net sales to be down as much as 3% from a year earlier.
On the earnings call, Chief Financial Officer Jon Monson said, "2026 has been a challenging year for us," noting that after several years of growth in parts of its cardiovascular portfolio, "we've seen that cycle turn." He added that Boston Scientific has rolled out a new operating model that should make its forecasts more accurate going forward.
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What it means for investors
The lowered guidance coincided with a sharp move in the shares, which were 9% lower at 9:32 a.m. Wednesday and had already fallen 53% year to date through Tuesday's close. The near term watch items are whether fourth quarter sales land within the guided decline and if the new operating model improves forecasting accuracy as intended.
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