Boston Scientific’s Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Boston Scientific (NYSE:BSX) will unveil its latest earnings on Thursday, July 26, 2012. 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 estimate of analysts is for net income of 11 cents per share, a rise of 10% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 10 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 11 cents during the last month. Analysts are projecting profit to rise by 12.2% compared to last year’s 43 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 15 cents per share against a mean estimate of net income of 8 cents per share.

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A Look Back: In the first quarter, profit rose more than twofold to $113 million (8 cents a share) from $46 million (3 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 3.1% to $1.87 billion from $1.93 billion.

Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell 77 cents (-12.5%), from $6.15 to $5.38. The stock price saw one of its best stretches over the last year between April 23, 2012 and April 27, 2012, when shares rose for five straight days, increasing 7% (+41 cents) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 10.2% (-60 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.89 billion in revenue this quarter, a decline of 4.5% from the year-ago quarter. Analysts are forecasting total revenue of $7.45 billion for the year, a decline of 2.2% from last year’s revenue of $7.62 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.2% in the third quarter of the last fiscal year and 7.7% in fourth quarter of the last fiscal year before falling again in the first quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the third quarter of the last fiscal year and fourth quarter of the last fiscal year, profit rose in the first quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.85 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.

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

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