Boston Scientific Earnings: Swung to a Loss as Revenue Lightens

S&P 500 (NYSE:SPY) component Boston Scientific Corporation (NYSE:BSX) reported its results for the third quarter. Boston Scientific provides devices used in medical procedures related to disciplines such as cardiology, endoscopy, gynecology, and electrophysiology.

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Boston Scientific Corporation Earnings Cheat Sheet

Results: Reported a loss of $725 million (52 cents per diluted share) in the quarter. The medical products had net income of $142 million or 9 cents per share in the year-earlier quarter.

Revenue: Fell 7.4% to $1.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Boston Scientific Corporation reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 11 cents per share. It fell short of the average revenue estimate of $1.89 billion.

Quoting Management: “Despite increased competition and on-going market challenges in our cardiology businesses, we continue to deliver on our adjusted earnings and free cash flow and saw encouraging year over year performance in nearly all of our other businesses,” said Hank Kucheman, chief executive officer, Boston Scientific. “We remain focused on executing our strategy to drive this organization back to revenue growth, as evidenced by recent regulatory approvals and acquisitions, and continued progress on our cost optimization initiatives.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the second quarter, by one cent in the first quarter, and by 7 cents in the fourth quarter of the last fiscal year.

Revenue has fallen for the last four quarters. Revenue declined 7.4% to $1.83 billion in the second quarter. The figure fell 3.1% in the first quarter from the year earlier and dropped 7.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The average estimate for the fourth quarter is steady at 11 cents a share. The average estimate hasn’t changed from 43 cents per share for the fiscal year.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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