On Monday, April 23, after market close, medical device firm Boston Scientific (NYSE:BSX) released first-quarter results for the period ended March 31. Here are the quick and dirty details for the quarter.
- Net sales grew 29%, as the Guidant acquisition boosted reported top-line figures. However, drug-eluting stent sales continue to be challenging, because of concerns over their effectiveness.
- Reported diluted earnings plummeted 80% on continued merger related charges. Management detailed that adjusted earnings were $0.20 when excluding certain special charges and expenses.
- For the second quarter, management expects revenues of $2 billion to $2.1 billion, adjusted earnings of $0.15-$0.20, and reported earnings of $0.04-$0.09.
- Boston Scientific carries a lowly two-star rating in Motley Fool CAPS. Medical device rival St. Jude Medical (NYSE:STJ) carries a four-star rating, as do Medtronic (NYSE:MDT) and Baxter (NYSE:BAX). Abbott Laboratories (NYSE:ABT) and Johnson & Johnson (NYSE:JNJ) also have sizeable medical device businesses; they carry three- and four-star ratings, respectively.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,080 |
$2,086 |
$1,620 |
28.8% |
|
Net Profit |
-- |
$120 |
$332 |
(63.9%) |
|
EPS |
$0.10 |
$0.08 |
$0.40 |
(80.0%) |
|
Diluted Shares | -- |
1,498 |
830 |
80.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
72.77% |
76.91% |
(4.14) |
|
Operating Margin |
13.52% |
30.68% |
(17.16) |
|
Net Margin |
5.75% |
20.49% |
(14.74) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,340 |
$1,083 |
23.7% |
|
Accounts Rec. |
$1,435 |
$978 |
46.7% |
|
Inventory |
$793 |
$407 |
94.8% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,925 |
$1,040 |
85.1% |
|
Long-Term Debt |
$8,898 |
$1,836 |
384.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Fools will have to wait until the company files its 10-Q for juicy cash flow details.
Free cash flow is a Fool's best friend.
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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.
Johnson & Johnson is an Income Investor recommendation. To see what other dividend-paying stocks James Early is recommending, check out Income Investor free for 30 days.
Fool contributor Ryan Fuhrmann is long shares of JNJ, but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
