The medical device maker expects $700 million to $800 million in pre-tax restructuring charges through 2029 and about $500 million in annual savings, after second-quarter results beat forecasts but third-quarter revenue and full-year EPS guidance disappointed.
Boston Scientific said its board approved a multi-year restructuring plan on July 21 aimed at streamlining supply chains, consolidating manufacturing facilities and realigning its workforce through the end of 2029. The company expects $700 million to $800 million in pre-tax charges, including $600 million to $700 million in cash costs, and said the program should deliver about $500 million in annual savings once fully implemented, with a significant share of those savings reinvested in growth initiatives. The update came with second-quarter results that topped Wall Street expectations. Revenue for the three months ended June 30 rose 7.5% to $5.44 billion, above the $5.36 billion consensus estimate, while adjusted earnings per share came in at $0.86 versus expectations of $0.83. Operating margin improved to 21.6% from 16.2% a year earlier, even as revenue growth slowed from 11.6% in the first quarter and 22.8% in the year-ago period. Investor sentiment was tempered by weaker guidance. Boston Scientific forecast third-quarter revenue of about $5.27 billion, below the $5.39 billion analysts expected, and cut its full-year adjusted EPS outlook to $3.30 at the midpoint, down 2.2% from its prior guidance. Chairman and Chief Executive Officer Mike Mahoney said the company delivered a solid quarter while navigating a dynamic environment. Shares rose after the results, though the softer outlook remained the main focus for investors.