Any questions that investors had about Boston Scientific's first quarter were answered when the medical device maker announced its results before the market opened on Wednesday. Here's what you need to know from the company's quarterly update.
By the numbers
Boston Scientific's top-line performance improved in the first quarter. Revenue jumped nearly 5% year over year to $2.49 billion. However, analysts estimated that the company's revenue for the first quarter would come in at $2.54 billion.
The company announced GAAP net income of $424 million, or $0.30 per share, in the first quarter. This represented a 42% increase from earnings of $298 million, or $0.21 per share, reported in the same quarter of 2018.
Boston Scientific reported Q1 adjusted earnings of $714 million, or $0.35 per share -- up 8% from $659 million, or $0.33 per share, in the prior-year period. Analysts were expecting Q1 adjusted earnings of $0.36 per share.
Behind the numbers
The good news for Boston Scientific was that it posted both revenue and earnings growth. CEO Mike Mahoney explained the company's improved performance was due to its global team and differentiated portfolio. However, Mahoney acknowledged that there was "some revenue softness" that caused the medical device maker to miss Q1 estimates.
This revenue softness also appears to have been a culprit in Boston Scientific's small earnings miss. However, the company did meet the low end of its first-quarter earnings guidance of $0.35 to $0.36 per share.
The company also had several key highlights for its first-quarter developments. These achievements included:
- Received Federal Drug Administration (FDA) approval of its aortic valve system, Lotus Edge.
- Reported results for the Vici Venous Stent System that showed a primary patency rate of 84% over a year period.
- Introduced the enrollment of Clear-DVT, a study to see if thrombectomies with the catheter AngioJet ZelanteDVT could reduce a significant amount of post-thrombotic syndrome occurrences in patients who had iliofemoral deep vein thrombosis.
Boston Scientific projects sales for full-year 2019 to be between 7% and 8% on a reported basis. The company thinks that estimated income on a GAAP basis will come in between $1.09 and $1.13 per share, lower than its previous guidance of $1.13 to $1.18 per share. Adjusted earnings are expected to be between $1.54 and $1.58 per share. The low end of that range is slightly higher than Boston Scientific's previous guidance.
The company also expects revenue growth in the second quarter of 5% to 7% on a reported basis. Q2 GAAP earnings are projected to come in between $0.23 and $0.25 per share, with adjusted earnings per share of $0.37 to $0.39.
CEO Mike Mahoney was enthusiastic about the outlook for the company. He specifically pointed to Boston Scientific's "strong pipeline and category leadership strategy" and expressed confidence in the company's "top tier 2019 outlook."