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ABT and BSX: Comparing Revenue Performance for Fiscal 2019

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Revenue guidance

In its first-quarter earnings conference call, Abbott Laboratories (ABT) reiterated its YoY organic sales growth rate of 6.5%–7.5% for fiscal 2019. However, the company has updated its estimate of the negative revenue impact attributable to foreign exchange fluctuations in fiscal 2019 from the previously projected 3% to 2.5%. The company expects to report a significant portion of this foreign exchange impact in the first half of fiscal 2019. Abbott Laboratories has reported a robust performance for all of its major long-term growth drivers such as Alinity Systems, FreeStyle Libre, and MitraClip in the first quarter of fiscal 2019.

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In its first-quarter earnings conference call, Abbott Laboratories has guided for YoY organic sales growth of 7%–4% negative impact due to foreign exchange movements at current rates for the second quarter. In its fourth-quarter earnings conference call, Boston Scientific (BSX) guided for YoY reported revenue growth of 7% to 9% for fiscal 2019, which includes YoY organic revenue growth of 7%–8.5% and inorganic growth of 110 basis points attributable to acquisitions of Augmenix, NxThera, and Claret. The company has also guided for a negative revenue impact of $80 million–$90 million attributable to foreign exchange movements in fiscal 2019.

Wall Street projections

Analysts expect Abbott Laboratories’ revenues to rise YoY by 4.60% to $31.98 billion in fiscal 2019, 6.89% to $34.19 billion in fiscal 2020, and 6.52% to $36.42 billion in fiscal 2021. On the other hand, analysts expect Boston Scientific’s revenues to rise YoY by 8.75% to $10.68 billion in fiscal 2019, 8.84% to $11.63 billion in fiscal 2020, and 8.40% to $12.60 billion in fiscal 2021.

Boston Scientific is thus expected to grow its revenues at a faster compound average growth rate as compared to Abbott Laboratories from fiscal 2019 to fiscal 2021.

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