Boston Scientific (BSX) Q4 Earnings Beat, Margins Decline
Zacks Investment Research | Feb 04, 2020 10:39PM ET
Boston Scientific Corporation (NYSE:BSX) posted adjusted earnings per share (EPS) of 46 cents in the fourth quarter of 2019, up 17.9% from the year-ago quarter. The same also exceeded the Zacks Consensus Estimate by 4.5% as well. Moreover, the figure surpassed the company’s guided range of 42-45 cents. The adjustments take into consideration certain litigation charges related to the company’s Channel Medsystems, Inc. purchase issue among others.
Reported EPS in the fourth quarter was $2.83, substantially above the year-ago earnings of 27 cents per share.
For the full year, adjusted EPS was $1.58, reflecting a 7.5% improvement from the year-earlier period. The figure also came a penny ahead of the Zacks Consensus Estimate, reaching the upper end of the company’s guided range of $1.55-$1.58.
Revenues in the fourth quarter rose 13.4% year over year reportedly, up 14.1% on an operational basis (at constant exchange rate or CER) and up 7.3% on an organic basis (adjusted for foreign currency fluctuations and certain recent acquisitions) to $2.91 billion. However, the number missed the Zacks Consensus Estimate of $2.92 billion by a close margin.
Full-year revenues of $10.74 billion were up 9.3% year over year on a reported basis (up 11.1% on an operational basis and up 7.3% on an organic basis). Here too, revenues marginally lagged the Zacks Consensus Estimate of $10.75 billion.
Q4 Revenues in Detail
In the fourth quarter, the company achieved 13.4% growth in the United States on a reported basis (same operationally); 7.2% improvement in the Europe, Middle East and Africa region (up 9.7%); 11.3% growth in the Asia Pacific zone (up 11.5%); 0.6% rise in Latin America and Canada (up 2.9%) and 14.1% increase in the emerging markets (up 16.2%).
Segmental Analysis
Boston Scientific currently has three global reportable segments: Cardiovascular, Rhythm and Neuro plus MedSurg.
The company generates maximum revenues from Cardiovascular. Sales from its subsegments, namely Interventional Cardiology and Peripheral Interventions were $748 million (up 12.8% year over year organically) and $403 million (up 3.6%), respectively, in the fourth quarter.
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