Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: BSX

Boston Scientific Reports 13% Q3 Sales Growth and Raises Yearly Estimates

Source:

This morning shares of Boston Scientific traded 6% higher after the firm reported a 13.1% increase in revenue for Q3/19. The firm also raised its revenue guidance for both Q4/19 and FY/19.

Early this morning medical device maker Boston Scientific Corp. (BSX:NYSE) announced third quarter earnings results for the period ending September 30, 2019. In the report the company indicated that it achieved sales of $2.707 billion during Q3/19 which represents growth of 13.1% on a reported basis when compared to Q3/18. The company further reported GAAP earnings of $126 million or $0.09 per share in Q3/19, compared to GAAP earnings of $432 million or $0.31 per share in Q3/18 with adjusted earnings per share of $0.39 in Q3/19 compared to $0.35 in Q3/18. The firm advised that Q3/19 GAAP earnings of $0.09 per share compared to its previous guidance range of $0.23 to $0.25 per share was due to acquisition related charges in Q3/19 primarily associated with the acquisition of BTG plc.

Boston Scientific's Chairman and CEO Mike Mahoney commented, "Our third quarter results reflect accelerated growth fueled by several key product launches, excellent regional performance and the broad strength of our core portfolio, and we continue to invest in building a robust pipeline...I am proud of our global teams across Boston Scientific who continue to bring forward new clinical solutions that advance science and help improve patient lives."

The company indicated that in Q3/19 it achieved revenue growth in all segments compared to Q3/18. Specifically, the MedSurg segment increased 13.2%, Rhythm and Neuro was up 5.4%, and Cardiovascular increased 11.3%. By region, sales in the U.S. increased by 10.6%, Europe, Middle East and Africa was up 6.3%, Asia-Pacific increased 13.8% and Emerging Markets were up 16.1% in the same corresponding period.

The company pointed out that in the quarter it "commenced launch of the WATCHMAN Left Atrial Appendage Closure Device in Japan upon securing positive local reimbursement; surpassed 100,000 patient implants worldwide...the WATCHMAN device is an affordable stroke risk reduction strategy for Medicare and Medicare beneficiaries compared to warfarin."

In the report the company also adjusted its forward guidance for Q4/19 and FY/19. The company now "estimates revenue growth for Q4/19, versus Q4/18, to be in a range of approximately 13-15% on a reported basis and a growth range of approximately 8-9% on an organic basis. The company estimates earnings on a GAAP basis in a range of $0.22-0.25/share and adjusted earnings, excluding certain charges (credits), in a range of $0.42-0.45/share...The firm estimates revenue growth for the FY/19, versus FY/18, to be in a range of approximately 9-9.5% on a reported basis (compared to prior guidance of 7-8%), and to be approximately 7.5% on an organic basis (compared to prior guidance of 7-8%). The company now estimates income on a GAAP basis in a range of $0.72-0.75/share (compared to prior guidance of $0.94-0.98/share) and estimates adjusted earnings, excluding certain charges (credits), in a range of $1.55-1.58/share (compared to prior guidance of $1.54-1.58/share)."

Boston Scientific is based in Marlborough, Mass., and is a developer, manufacturer and marketer of medical devices used in a range of interventional medical specialties. The firm offers products used in the areas of Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology.

Boston Scientific has a market cap of about $53.2 billion with approximately 1.393 billion shares outstanding. BSX shares opened higher today at $40.75 (+2.57, +6.73%) over yesterday $38.18 closing price. The stock has traded between $39.77 to $41.24 per share today and currently is trading at $40.62 (+$2.44, +6.39%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.




Want to read more about Medical Devices investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe