Medtech earnings reports: insights from major players' Q4 results
February 2, 2023
It's Q4 earnings season, and several medtech firms have reported financials this week, including Edwards Lifesciences, Stryker, Boston Scientific, and Siemens Healthineers.
On Tuesday, January 31, Edwards Lifesciences reported Q4 revenue of $1.35 billion, a 1% YoY increase. The company's net income increased 19% to $398.4 million, and earnings per share rose 23% to $0.65.
For the full year 2022, Edwards Lifesciences recorded revenue of $5.38 billion, a 3% increase from the previous year. The company's net income for the year increased 1% to $1.52 billion, and earnings per share rose 3% to $2.44.
Edwards Lifesciences is a medical technology company specializing in the development and manufacturing of products and technologies for the treatment of heart diseases. The company is primarily known for its focus on minimally invasive procedures for the treatment of structural heart diseases, and it has a strong presence in the global market for heart valves, transcatheter mitral and tricuspid therapies, and critical care monitoring.
Stryker also reported financials Tuesday, with Q4 revenue of $5.2 billion, a YoY increase of 10.7%. Despite this growth in revenue, the company's net income decreased 15% to $563 million, and earnings per share (diluted) decreased 15% to $1.47.
For the full year 2022, Stryker recorded revenue of $18.4 billion, up 7.8% from the previous year. The company's net income for the year increased 18.3% to $2.36 billion, and earnings per share (diluted) rose 18.4% to $6.17.
Stryker has forecast organic sales growth of 7-8% for the full year of 2023, with estimated net earnings per diluted share of $9.85 to $10.15. According to the company's CFO, Glenn Boehnlein, "We anticipate ongoing macroeconomic volatility, including supply chain challenges, the potential for recession, inflationary risks, and currency fluctuations."
Stryker is a medtech providing a wide range of products and services in the areas of medical devices, software and technology solutions, and services to healthcare providers and hospitals. Stryker's product portfolio includes orthopedic and spine implants, surgical equipment and instruments, endoscopic and communication systems, patient handling and emergency medical equipment, and neurotechnology and spine products.
On Wednesday, Feburary 1, Boston Scientific reported a resurgence in net income in Q4, driven by increased sales of cardiovascular and medical/surgical products. In response, the company's shares rose over 2% to $47.37 during Wednesday morning trading.
CEO Mike Mahoney, speaking on a conference call, mentioned that despite macroeconomic and supply chain hurdles, most of the company's business units held or grew their market share, delivering a strong performance across all regions.
Looking ahead, Boston Scientific has projected net sales growth of 5-7% in 2023 compared to the previous year, with GAAP earnings per share in the range of $1.11 to $1.21. The company has estimated adjusted earnings, after excluding charges, to be between $1.86 and $1.93 per share.
For Q1, Boston Scientific anticipates net sales to increase 3-5% YoY, with GAAP EPS in the range of $0.23 to $0.26 and adjusted EPS of $0.42 to $0.44.
Boston Scientific develops, manufactures, and markets innovative medical technologies,devices and solutions for cardiovascular, peripheral interventions, neuromodulation, urology and pelvic health, and electrophysiology. Boston Scientific is known for its advancements in minimally invasive procedures and has a strong presence in the global market for drug-eluting stents, interventional cardiology devices, and neuromodulation devices.
On Thursday, February 2, Siemens Healthineers reported its fiscal first-quarter numbers, with revenue of €5.1 billion, a slight 0.2% increase year-over-year. Despite this, the company saw a decrease in net income, which was €426 million, a 10% drop from the previous year. Additionally, basic earnings per share also saw a decrease, at $0.38, a 9% drop year-over-year.
Despite these challenges, CFO Jochen Schmitz said that the company expects sales growth to accelerate in the coming quarter. Schmitz explained that the dip in revenue and profit was due to falling sales of rapid COVID-19 antigen tests, pandemic-related diagnostic disruption in China, and supply chain delays at its radiation oncology business Varian. However, after seeing a strong month of December with significant growth, Schmitz is confident in the company's ability to strongly accelerate revenue growth in the second quarter.
Siemens Healthineers is a subsidiary of Siemens AG, a multinational conglomerate that operates in various industries including energy, infrastructure, and technology. Siemens Healthineers was spun off as a standalone company in 2018 and operates as a publicly traded entity on the Frankfurt Stock Exchange. The company focuses on the fields of medical imaging, laboratory diagnostics, advanced therapies, and digital health services.