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Boston Scientific Lowered Its 2019 Revenue Guidance

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Revenue guidance

During its first-quarter earnings conference call, Boston Scientific (BSX) lowered its 2019 organic revenue growth guidance from the previously projected 7%–8.5% YoY (year-over-year) to 7%–8% YoY. The company, however, reiterated the 2019 revenue contribution of 110 basis points it expected from its acquisitions of NxThera, Augmenix, and Claret. It didn’t include the contribution from its proposed acquisition of BTG, a player in minimally invasive treatment options for cancer and vascular conditions, as the deal was not yet closed.

The company has revised its 2019 YoY operational revenue growth guidance downward from its previously projected 8.1%–9.6% to 8.1%–9.1%. It’s also reduced the upper end of its YoY reported revenue growth guidance for 2019 by 100 basis points to 7%–8%.

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On its first-quarter earnings conference call, Boston Scientific said that it expected a negative revenue impact of $110 million–$120 million—higher than its previously projected $80 million–$90 million—associated with foreign exchange in 2019.

Analysts expect Boston Scientific’s revenue to see YoY rises of 8.24% to $10.63 billion in 2019, 9.02% to $11.59 billion in 2020, and 8.44% to $12.57 billion in 2021.

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Second-quarter revenue

Boston Scientific expects YoY organic revenue growth guidance of 6%–7%, YoY operational revenue growth of 7.4%–8.4%, and YoY reported revenue growth of 5%–7% in the second quarter. The company has projected a YoY revenue growth rate contribution of 140 basis points associated with its acquisitions of NxThera, Augmenix, and Claret. Boston Scientific expects to see a negative revenue impact of $45 million–$50 million due to foreign exchange movements in the quarter.

Analysts expect Boston Scientific’s revenue to see YoY rises of 6.25% to $2.65 billion in the second quarter, 10.05% to $2.63 billion in the third quarter, and 10.78% to $2.84 billion in the fourth quarter of 2019.

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