Boston Scientific’s 3Q16 Earnings Beat Analysts’ Estimates



EPS estimates

Boston Scientific (BSX) reported its 3Q16 earnings on October 26, 2016. The company registered adjusted EPS (earnings per share) of $0.27 in 3Q16. It had ~12.5% YoY (year-over-year) growth. It came in at the high-end of the guidance range of $0.25–$0.27.

As the above graph shows, Boston Scientific’s EPS of $0.27 in 3Q16 marginally exceeded Wall Street analysts’ estimates of $0.27. Approximately $0.01 of the unfavorable currency impact hurt its 3Q16 adjusted EPS. The company reported strong YoY EPS growth—driven primarily by solid revenue growth and attractive gross margins.

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Revenue estimates

In 3Q16, the company earned revenues of ~$2.1 billion. It registered a YoY rise of around 11.5% on a reported basis. On an operational basis, its revenue grew ~10%. Currency headwinds had a negative impact on its revenues by $146 million. Boston Scientific registered organic revenue growth of ~9%. It was at the high end of the company’s guidance range of 7%–9%. It excludes the impact of AMS male urology sales and foreign exchange.

As the above graph shows, Boston Scientific’s actual revenues in 3Q16 exceeded Wall Street analysts’ estimates. The company reported strong performance and growth in the revenue from all of its business segments. It continued to witness double-digit growth in the MedSurg segment, Peripheral Interventions, and Interventional Cardiology businesses.

Boston Scientific’s peers such as Edwards Lifesciences (EW), Baxter International (BAX), and Abbott Laboratories (ABT) earned revenues of ~$0.74 billion, $2.6 billion, and $5.3 billion, respectively, for the quarter ending September 30, 2016. Investors can gain diversified exposure to Boston Scientific by investing in the iShares Core S&P 500 ETF (IVV). Boston Scientific accounts for about 0.16% of IVV’s total holdings.


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