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:

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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.