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Boston Scientific or Abbott: A Look at Expected EPS Growth

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Earnings projections for fiscal 2019

In its fourth-quarter earnings investor presentation, Boston Scientific (BSX) has guided for adjusted EPS of $1.53–$1.58 for fiscal 2019, a YoY increase of 4%–8%, assuming the neutral impact of foreign exchange at current rates. Excluding the impact of the net benefit associated with tax settlement worth $0.07 in fiscal 2018, the company expects its adjusted EPS to grow YoY by 9%–13% in fiscal 2019. The company has also projected its GAAP EPS to fall in the range of $1.13–$1.18 in fiscal 2019, which also involves the impact of the settlement of the litigation with Edwards Lifesciences (EW).

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In its fourth-quarter earnings investor presentation, Boston Scientific has forecasted adjusted EPS of $0.35–$0.36 in the first quarter, a YoY increase of 8%–11%, assuming the neutral impact of foreign exchange at current rates. The company has also projected its GAAP EPS to fall in the range of $0.32–$0.33 in the first quarter of fiscal 2019. In its fourth-quarter conference call, Abbott Laboratories (ABT) has forecasted its adjusted non-GAAP EPS to fall in the range of $3.15–$3.25 in fiscal 2019 and $0.60–$0.62 in the first quarter of fiscal 2019.

Wall Street’s projections

Wall Street analysts have projected Boston Scientific’s non-GAAP EPS to be $1.57, $1.80, and $2.05, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively. These estimates imply YoY growth of 6.87%, 14.82%, and 13.53% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

On the other hand, Wall Street analysts have projected Abbott Laboratories’ non-GAAP EPS to be $3.21, $3.60, and $4.00, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies YoY growth rates of 11.50%, 12.05%, and 11.10% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

Next, we’ll discuss margin and expense projections for Boston Scientific and Abbott Laboratories in fiscal 2019.

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