Please ensure Javascript is enabled for purposes of website accessibility

Boston Scientific Drastically Reduces Q1 Revenue Guidance

By Eric Volkman - Apr 2, 2020 at 7:17PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company did not offer updated guidance for its full-year fiscal 2020 results.

Add Boston Scientific (BSX -0.53%) to the list of companies scaling back or even eliminating their guidance in the wake of the SARS-CoV-2 coronavirus pandemic.

On Thursday, the healthcare-device specialist published an update for its investors, and one of the key points was a reduction in its outlook for its just-completed Q1 of fiscal 2020. It now believes GAAP revenue will be flat to "up slightly" on a year-over-year basis, with organic revenue falling by roughly 2% to 3%. It didn't provide any kind of forecast for profitability or update its annual guidance.

Boston Scientific headquarters.

Image source: Boston Scientific.

The new outlook represents a significant adjustment for the company. Previously, it had anticipated 10% to 12% revenue growth on a reported basis for the quarter, with organic growth well in positive territory at 5% to 7%. It felt that non-GAAP (adjusted) per-share earnings would fall in the $0.37 to $0.40 per-share range. At the time, the company factored in the effects of the coronavirus outbreak on its business.

For the entirety of fiscal 2020, Boston Scientific had been modeling -- again -- a GAAP revenue increase of 10% to 12%. It believed organic growth would be 6.5% to 8.5%. Adjusted earnings were forecast at $1.74 to $1.79 per share.

In the update, the company detailed the measures it was taking to reduce costs. Specifically, it wrote that "[t]hese steps include optimizing appropriate variable costs, including manufacturing output, significantly reducing the salaries of its chief executive officer, board of directors and executive committee members, and where appropriate, temporarily reducing work week schedules for employees." It did not get more specific.

On Thursday, Boston Scientific stock rose by almost 3%, slightly outpacing the major equity indexes.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Boston Scientific Corporation Stock Quote
Boston Scientific Corporation
$37.82 (-0.53%) $0.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.