Boston Scientific Earnings: Here’s Why Investors are Bidding Shares Higher
Boston Scientific Corporation (NYSE:BSX) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. The company also announced it will trim up to 1,000 jobs in a restructuring effort this year. Shares are up 5.36%.
Boston Scientific Corporation Earnings Cheat Sheet
Results: Net income decreased -43.93% to $60 million (4 cents per diluted share) in the quarter versus a net gain of $107 million in the year-earlier quarter.
Revenue: Decreased 1.46% to $1.82 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Boston Scientific Corporation reported adjusted net income of 11 cents per share. By that measure, the company met the mean analyst estimate of $0.11. It beat the average revenue estimate of $1.76 billion.
Quoting Management: “We are pleased but not satisfied with our improved performance in the quarter,” said Mike Mahoney, President and CEO, Boston Scientific…
…We continued to enhance our growth portfolio, expand in the emerging markets, and implement operational changes to improve our execution and sharpen our customer focus. I am confident we are taking the critical steps that are needed to return our company to long-term growth.”
Revenue increased 4.96% from $1.74 billion in the previous quarter. Net income increased to $60 million in the quarter versus a net loss of $664 million in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.1 and has not changed. For the current year, the average estimate is a profit of $0.41, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials.)