S&P 500 (NYSE:SPY) component Boston Scientific Corporation (NYSE:BSX) reported net income above Wall Street’s expectations for the second quarter. Boston Scientific, Inc. offers medical devices used in interventional cardiology, cardiac rhythm management, peripheral interventions, endoscopy, gynecology, electrophysiology, neurovascular intervention and neuromodulation.
Boston Scientific Earnings Cheat Sheet for the Second Quarter
Results: Net income for Boston Scientific Corporation rose to $146 million (10 cents per share) vs. $98 million (6 cents per share) in the same quarter a year earlier. This marks a rise of 49% from the year earlier quarter.
Revenue: Rose 2.4% to $1.98 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: BSX reported adjusted net income of 17 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. Analysts were expecting revenue of $1.94 billion.
Quoting Management: “Our POWER strategy is gaining traction and beginning to deliver tangible results,” stated Ray Elliott, President and Chief Executive Officer of Boston Scientific Corporation. “In addition to solid second quarter financial results, we have now announced the prepayment of our remaining term loan borrowings, a share buyback program, a productivity-focused restructuring program and an additional investment in China, all of which are key steps on the path to achieving our goals. That’s great news for our employees, shareholders and customers! We remain confident that Boston Scientific is POWERed for long term, sustainable growth.”
A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 7% decrease.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 10 cents in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.
Gross margin shrank 0.9 percentage point to 65.2%. The contraction appeared to be driven by increased costs, which rose 5.2% from the year earlier quarter while revenue rose 2.4%.
Competitors to Watch: Medtronic, Inc. (NYSE:MDT), St. Jude Medical, Inc. (NYSE:STJ), Merit Medical Systems, Inc. (NASDAQ:MMSI), C.R. Bard, Inc. (NYSE:BCR), Abbott Laboratories (NYSE:ABT), Johnson & Johnson (NYSE:JNJ), Stryker Corporation (NYSE:SYK), Teleflex Incorporated (NYSE:TFX), AngioDynamics, Inc. (NASDAQ:ANGO), and The Spectranetics Corp. (NASDAQ:SPNC).
(Source: Xignite Financials)