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Geographic Revenue Drivers and EPS Estimates for BSX in 2018

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Geographic drivers

In 2018, Boston Scientific (BSX) reported unaudited sales of $5.54 billion from the US market, a YoY (year-over-year) rise of 7.3%. The company reported unaudited sales of $2.18 billion from the EMEA (Europe, the Middle East, and Africa) market, $1.73 billion from the Asia-Pacific market, and $0.10 billion from the Latin America and Canada market in 2018. These figures implied YoY sales rises of 5.1%, 5.2%, and 7.2%, respectively, for the EMEA, Asia-Pacific, and Latin America and Canada markets, respectively. The company reported a 9% YoY rise in sales from overall international markets in 2018.

According to Boston Scientific’s 37th Annual J.P. Morgan Healthcare Conference investor presentation, the company expects to grow its sales in emerging markets at a CAGR (compound annual growth rate) of ~15% until 2020.

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EPS projections

Wall Street analysts expect Boston Scientific to report adjusted diluted EPS of $1.39, a YoY rise of 10.37%, in 2018. The company is also expected to report adjusted diluted EPS of $1.58, a YoY rise of 13.60%, in 2019. Boston Scientific is expected to report adjusted diluted EPS of $1.81, a YoY rise of 14.57%, in 2020.

According to the company’s investor presentation, it expects to report adjusted diluted EPS of $1.38–$1.40 in 2018, a YoY rise of 10%–11%. Since 2015, the company has consistently reported double-digit YoY growth in its adjusted diluted EPS. It has reported a CAGR of 14% in its adjusted diluted EPS from 2015 to 2018. The company also expects to report double-digit YoY growth in its adjusted diluted EPS in 2019 and 2020.

In the next article, we’ll discuss margin and tax rate estimates for Boston Scientific in 2018 in greater detail.

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