Boston Scientific Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Boston Scientific (NYSE:BSX) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Boston Scientific provides devices used in medical procedures related to disciplines such as cardiology, endoscopy, gynecology, and electrophysiology.

Boston Scientific Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 11 cents per share, a rise of 22.2% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 16.3% versus last year to 41 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 16 cents per share against a mean estimate of profit of 11 cents per share.

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A Look Back: In the third quarter, the company swung to a loss of $664 million (48 cents a share) from a profit of $142 million (9 cents) a year earlier, but beat analyst expectations. Revenue fell 7.4% to $1.74 billion from $1.87 billion.

Here’s how Boston Scientific traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

bsx

Wall St. Revenue Expectations: Analysts are projecting a decline of 4.9% in revenue from the year-earlier quarter to $1.76 billion.

Analyst Ratings: There are mostly holds on the stock with 15 of 22 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 7.7% in the fourth quarter of the last fiscal year, 3.1% in first quarter and 7.4% in the second quarter and then fell again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.75 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.73 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2% to $3.17 billion while liabilities rose by 1.2% to $1.81 billion.

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