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Boston Scientific Goes Negative

By Seth Jayson - Updated Apr 7, 2017 at 12:19PM

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Just the facts, Fool.

Boston Scientific (NYSE: BSX) reported earnings on Oct. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Boston Scientific missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Boston Scientific logged revenue of $1.74 billion. The 21 analysts polled by S&P Capital IQ expected net sales of $1.77 billion on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $1.87 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS were -$0.52 for Q3 against $0.09 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.2%, 400 basis points better than the prior-year quarter. Operating margin was 13.8%, 220 basis points better than the prior-year quarter. Net margin was -41.8%, 4,940 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $7.25 billion. The average EPS estimate is $0.43.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 751 members out of 937 rating the stock outperform, and 186 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Boston Scientific a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boston Scientific is hold, with an average price target of $6.10.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Boston Scientific Corporation Stock Quote
Boston Scientific Corporation
BSX
$40.97 (0.07%) $0.03

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