Can Boston Scientific Surpass Its Earnings Estimates in 3Q17?



BSX’s analyst estimates

In 2Q17, Boston Scientific (BSX) surpassed the Wall Street analysts’ EPS (earnings per share) estimate by ~3.2%, but the company’s EPS failed to meet the analysts’ estimate in 1Q17.

Generally, the stock price of a company is affected by the deviation of the company’s actual results from the Wall Street analysts’ estimates. A stock price rises if the results meet analysts’ estimates, it can fall if the results miss.

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According to the Wall Street estimates, Boston Scientific’s 3Q17 EPS is expected to be ~$0.31. The company has guided its fiscal 3Q17 adjusted diluted EPS to be in the range of $0.29–$0.31. This excludes acquisition-related charges, restructuring-related charges, and amortization expenses. The company’s 3Q17 GAAP (generally accepted accounting principles) earnings estimate is in the range of $0.16–$0.18 per share.

BSX’s EPS estimate for 3Q17 represents YoY (year-over-year) growth in the range of 9%–16%. In 2Q17, Boston Scientific registered EPS growth of 18.5% YoY.

BSX’s growth drivers

Boston Scientific is expected to report strong 3Q17 earnings on key product launches and strategic acquisitions. One of BSX’s key growth strategies is to increase its presence in high-growth markets and reduce its focus on low-growth markets, and this is expected to yield significant top-line and bottom-line growth going forward.

BSX stock has been witnessing strong a rally recently, driven by positive company developments. (For more, check out Market Realist’s series What’s the Story behind Boston Scientific’s Recent Stock Rally?)

In their most recent quarters, peers Becton, Dickinson, and Company (BDX), Edwards Lifesciences (EW), and Thermo Fisher Scientific (TMO) are expected to report YoY EPS growth of 11.9%, 26.8%, and 10.8%, respectively.

Notably, Boston Scientific (BSX) makes up ~0.38% of the total portfolio holdings of the SPDR S&P 500 ETF (VUG).


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