Boston Scientific Convalesces: Fool by Numbers

On Thursday, Feb. 1, Boston Scientific (NYSE: BSX  ) released fourth-quarter and year-end results for the period ended Dec. 31. Here are the quick and dirty details.

• Fourth-quarter sales grew 34.1% to $2.1 billion as the company acquired rival Guidant and Advanced Bionics.
• Total diluted earnings fell 52.5% for the quarter as merger charges and other costs reduced bottom-line results. On an adjusted basis, for the year the company detailed it earned $1.12 per share rather than the reported loss of $2.81.
• Management offered first-quarter guidance of $2 billion-$2.1 billion in sales and $0.15-$0.21 in earnings, excluding special charges and certain other expenses.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q4 2006	Q4 2005	Change
Sales	$2,070	$2,065	$1,540	34.1%
Net Profit	--	$277	$334	(17.1%)
EPS	$0.11	$0.19	$0.40	(52.5%)
Diluted Shares		1,494	830	80.0%

*Three months ended December 31, 2006 and December 31, 2005.

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	74.53%	77.79%	(3.26)
Operating Margin	13.75%	30.19%	(16.44)
Net Margin	13.41%	21.69%	(8.28)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$1,668	$848	96.7%
Accounts Rec.	$1,424	$932	52.8%
Inventory	$749	$418	79.2%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$2,067	$1,229	68.2%
Long-Term Debt	$8,895	$1,864	377.2%

Learn the ways of the balance sheet.

Cash Flow Highlights

Fools will have to wait until the 10-K is filed for juicy cash flow details.

Find out why Fools always follow the money.

Comparable companies:

• Medtronic (NYSE: MDT  )
• St. Jude (NYSE: STJ  )
• Johnson & Johnson (NYSE: JNJ  )
• Abbott Labs (NYSE: ABT  )

Related Foolishness:

• Foolish Fundamentals: Free Cash Flow
• Foolish Fundamentals: Return on Invested Capital

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.