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Dec 31, 2019

Boston Scientific Q4 2019 Earnings Report

Boston Scientific's Q4 2019 earnings exceeded expectations, driven by strong revenue growth across all segments and regions.

Key Takeaways

Boston Scientific reported strong Q4 2019 results, with sales reaching $2.905 billion, a 13.4% increase. GAAP EPS was $2.83, and adjusted EPS was $0.46, surpassing guidance. Revenue growth was seen across all segments and regions.

Reported fourth quarter sales of $2.905 billion, representing an increase of 13.4 percent on a reported basis.

Reported fourth quarter GAAP earnings of $2.83 per share.

Achieved adjusted earnings per share of $0.46 per share.

Achieved fourth quarter revenue growth in all segments, compared to the prior year period.

Total Revenue
$2.91B
Previous year: $2.56B
+13.4%
EPS
$0.46
Previous year: $0.38
+21.1%
MedSurg organic growth
10.6%
Cardio organic growth
10%
Gross Profit
$2.04B
Previous year: $1.81B
+12.3%
Cash and Equivalents
$217M
Previous year: $146M
+48.6%
Free Cash Flow
$506M
Previous year: -$87M
-681.6%
Total Assets
$30.6B
Previous year: $21B
+45.6%

Boston Scientific

Boston Scientific

Boston Scientific Revenue by Segment

Boston Scientific Revenue by Geographic Location

Forward Guidance

The company estimates revenue growth for the full year 2020 to be in the range of approximately 10 to 12 percent on a reported basis and a growth range of approximately 6.5 to 8.5 percent on an organic basis. The company estimates income on a GAAP basis in a range of $0.95 to $1.00 per share and estimates adjusted earnings, excluding certain charges (credits) in a range of $1.74 to $1.79 per share.

Positive Outlook

  • Revenue growth for the full year 2020 is estimated to be in a range of approximately 10 to 12 percent on a reported basis.
  • Organic revenue growth for the full year 2020 is expected to be in a range of approximately 6.5 to 8.5 percent.
  • Full year organic guidance excludes the impact of foreign currency fluctuations and contribution of approximately 350 basis points from the acquisitions of Vertiflex and BTG.
  • The company estimates income on a GAAP basis in a range of $0.95 to $1.00 per share.
  • Adjusted earnings, excluding certain charges (credits) are expected to be in a range of $1.74 to $1.79 per share.

Challenges Ahead

  • First quarter sales guidance contemplates a preliminary negative sales impact estimate of $10 million to $40 million due to the potential effect of the coronavirus on procedure volumes in China and supply chain disruption.
  • First quarter organic guidance excludes the impact of foreign currency fluctuations and contribution of approximately 600 basis points from the acquisitions of Vertiflex and BTG.
  • The company estimates earnings on a GAAP basis in a range of $0.16 to $0.19 per share for Q1 2020.
  • Adjusted earnings, excluding certain charges (credits) are expected to be in a range of $0.37 to $0.40 per share for Q1 2020.
  • Future economic, political, competitive, reimbursement and regulatory conditions could affect the company's performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income