Categories Earnings, Health Care

Boston Scientific (BSX) stock drops on weak Q4 preliminary revenue

Boston Scientific Corporation (NYSE: BSX) stock dropped over 6% on Tuesday after its preliminary fourth-quarter report. The shares have fallen over 5% in the past month and over 7% in the past five days despite rising over 20% in the past year. Investors remained concerned about the weakness that could lower the growth.

For the fourth quarter, Boston Scientific now expects revenue to grow about 13.4% to $2.9 billion and earnings to exceed its previous forecast range of $0.22-0.25 per share. Adjusted earnings are now anticipated to be within the previous range of $0.42-0.45 per share. Analysts had forecast EPS of $0.44 on revenue of $2.93 billion.

Boston Scientific Cardiovascular heart model
Image for representation. Courtesy: Jesse Orrico on Unsplash

For fiscal 2019, sales are projected to grow about 9.3% to $10.74 billion and earnings to exceed its previous estimates range of $0.72-0.75 per share. Adjusted earnings are predicted to be within the prior range of $1.55-1.58 per share. The consensus estimates EPS of $1.57 on revenue of $10.76 billion.

The preliminary bottom-line results were based on a significant non-cash tax benefit arising from an intra-entity asset transfer of intellectual property completed in the fourth quarter of 2019. The company has experienced more of a benefit accruing in the third quarter than the fourth quarter.

During the quarter, the company’s peripheral business is likely to slow due to tough comp from the Alluvia launch in the US a year ago and also a competitor to manufacturing issues. Also, a change of a distributor in Japan could slow the peripheral business.

Read: SmileDirectClub stock rebounds amid growth concerns

The market experts believe that the company could be benefited from the continued solid momentum and likely to meet expectations for the fourth quarter. However, there could be a little bit of slowdown due to the recognition of sales upon cash collection, lumpier emerging markets, minor revenue recognition, and lesser benefits from the stocking.

Also Read:  Infographic: Schlumberger (SLB) Q1 2020 Earnings Results

On the operating margins standpoint, the company believes that its really diversified strength across the portfolio of all seven businesses as well as region-wise could show good performance during the quarter. The company is expected to release its final results and business highlights for the fourth quarter on February 5.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Box Inc  (NYSE: BOX) Q1 2021 Earnings Call Transcript

Box Inc  (BOX) Q1 2021 earnings call dated May 27, 2020 Corporate Participants: Alice Kousoum Lopatto -- Head of Investor Relations Aaron Levie -- Chief Executive Officer, Co-founder and Chairman Dylan Smith -- Chief Financial Officer

Southwest is looking northside as lockdown restrictions ease

When Warren Buffett dumped airline stocks suffering massive losses three weeks ago, he probably overlooked one key aspect about the industry – that no amount of restrictions will kill people’s

Alibaba (BABA) entering a new phase as China emerges from COVID crisis

Alibaba Group Holding Ltd (NYSE: BABA) is striving to regain strength after falling sharply last week, ahead of fourth-quarter earnings. The positive results failed to impress stakeholders as market sentiment