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Boston Scientific or Abbott: Who Will Report More Revenue Growth?

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Feb. 20 2019, Published 8:04 a.m. ET

Revenue guidance for fiscal 2019

In its fourth-quarter earnings investor presentation, Boston Scientific (BSX) guided for YoY revenue growth of 7%–9%, YoY organic revenue growth of 7%–8.5%, and YoY operational revenue growth of 8.1%–9.6% for fiscal 2019.

According to the company’s fourth-quarter earnings conference call, the company’s acquisitions of NxThera, Augmenix, and Claret are expected to contribute around 110 basis points worth of YoY revenue growth for Boston Scientific in fiscal 2019. The company also expects its revenues to benefit by $80 million–$90 million due to foreign exchange in fiscal 2019.

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In its fourth-quarter earnings investor presentation, Boston Scientific (BSX) guided for YoY revenue growth of 6%–7%, YoY organic revenue growth of 7%–8%, and YoY operational revenue growth of 8.6%–9.6% in the first quarter of fiscal 2019. The company expects acquisitions of NxThera, Augmenix, and Claret to contribute 160 basis points worth of YoY revenue growth in the first quarter. The company also expects its first-quarter revenues to benefit from $60 million–$65 million due to foreign exchange.

In its fourth-quarter conference call, Abbott Laboratories (ABT) guided for YoY organic revenue growth of 6.5%–7.5% and an unfavorable foreign exchange revenue impact of 3% in fiscal 2019. The company anticipates a major part of the negative FX impact to materialize in the first half of 2019. Abbott Laboratories has guided for 7% YoY organic revenue growth in the first quarter of 2019. Boston Scientific has projected a higher YoY organic revenue growth forecast as compared to Abbott Laboratories for fiscal 2019.

Wall Street’s projections

Wall Street analysts have projected Boston Scientific’s revenues to be $10.70 billion, $11.64 billion, and $12.66 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies YoY revenue growth of 8.88%, 8.81%, and 8.83% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

On the other hand, Wall Street analysts have projected Abbott Laboratories’ revenues to be $31.84 billion, $34.05 billion, and $36.32 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively. This implies a YoY revenue growth rate of 4.14%, 6.92%, and 6.69% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

Boston Scientific is expected to report higher YoY revenue growth from fiscal 2019 to fiscal 2020 as compared to Abbott Laboratories.

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

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