Boston Scientific Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Boston Scientific (NYSE:BSX) will unveil its latest earnings on Thursday, October 18, 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 analyst estimate is for net income of 11 cents per share, a decline of 26.7% 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 14.3% compared to last year’s 42 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 6 cents, coming in at profit of 17 cents a share versus the estimate of net income of 11 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, the company swung to a loss of $3.58 billion ($2.51 a share) from a profit of $146 million (10 cents) a year earlier, but beat analyst expectations. Revenue fell 7.4% to $1.83 billion from $1.98 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 5.9% in revenue from the year-earlier quarter to $1.76 billion.

Stock Price Performance: Between September 14, 2012 and October 12, 2012, the stock price dropped 25 cents (-4.3%), from $5.82 to $5.57. The stock price saw one of its best stretches over the last year between August 31, 2012 and September 7, 2012, when shares rose for five straight days, increasing 4.3% (+23 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.

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 2.2% in the third quarter of the last fiscal year, 7.7% in fourth quarter of the last fiscal year and 3.1% in the first quarter and then fell again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 15 of 21 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.73 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 regressed in this liquidity measure from 1.85 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.5% to $1.79 billion while assets rose 0.6% to $3.11 billion.

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

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