Boston Scientific Says Cyberattack Will Cause It to Miss Guidance
BSX is trading near its 52-week low of $42.2 (11% above the low).
Summary
Boston Scientific now expects to miss its Q3 and full-year sales and adjusted EPS guidance due to the August 25 cyberattack. The company had previously guided to 3-5% Q3 sales growth and $0.80-$0.82 adjusted EPS, with full-year EPS of $3.28-$3.32. Shares fell 4% premarket to $45.90. Operations are recovering—major distribution centers are back to normal or above, sterilization is operational, and manufacturing has resumed at most plants—but the company will not provide updated guidance until Q3 earnings on Oct. 28. This follows the initial cyberattack disclosure on Aug. 26 and the July guidance cut; the new admission of a guidance miss is a significant negative development for a $69B market cap company. The company identified the cybersecurity incident as causing global operational disruption in an SEC filing.
At the time of this announcement, BSX was trading at $46.74 on NYSE in the Life Sciences sector, with a market capitalization of approximately $69.3B. The 52-week trading range was $42.20 to $109.50. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.