Despite Beating Expectations, Boston Scientific Takes a Hit

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Boston Scientific (NYS: BSX) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Boston Scientific met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share improved significantly.


Gross margin and operating margin contracted, while net margin improved.

Revenue details
Boston Scientific reported revenue of $1.87 billion. The 21 analysts polled by S&P Capital IQ looked for revenue of $1.86 billion on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $1.93 billion.

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

EPS details
Non-GAAP EPS came in at $0.09. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share on the same basis. GAAP EPS of $0.08 for Q1 were 167% higher than the prior-year quarter's $0.03 per share.

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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 63.6%, 150 basis points worse than the prior-year quarter. Operating margin was 11.6%, 480 basis points worse than the prior-year quarter. Net margin was 6.1%, 370 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.9 billion. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $7.48 billion. The average EPS estimate is $0.42.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 750 members rating the stock outperform and 186 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Boston Scientific a green thumbs-up, and 17 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 $6.64.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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