Boston Scientific Earnings: Here’s Why Investors are Not Happy Now
Boston Scientific Corporation (NYSE:BSX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.09%.
Boston Scientific Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 77.78% to $0.16 in the quarter versus EPS of $0.09 in the year-earlier quarter.
Revenue: Decreased 5.63% to $1.76 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Boston Scientific Corporation reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.09. It missed the average revenue estimate of $1.79 billion.
Quoting Management: “We continue to be encouraged but not satisfied with our operating performance,” said Mike Mahoney, president and chief executive officer, Boston Scientific. “The company delivered adjusted results that are consistent with first-quarter and full-year guidance. We continue to make strong progress on our strategy to return to consistent sales and earnings-per-share growth.”
Key Stats (on next page)…
Revenue decreased 3.29% from $1.82 billion in the previous quarter. EPS increased 45.45% from $0.11 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.11 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.41 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)