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Boston Scientific down despite Street-beating Q4

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Boston ScientificBoston Scientific (NYSE:BSX) shares took a hit today after it issued Q1 and 2022 guidance below the consensus forecast.

Shares of BSX ticked down more than 4% to $41.49 apiece by afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.

The Marlborough, Massachusetts-based company posted profits of $80 million, or 14¢ per share, on sales of $3.13 billion for the three months ended Dec. 31, 2021, for a 59.2% bottom-line slide on sales growth of 15.5%.

Adjusted to exclude one-time items, earnings per share were 45¢, 1¢ ahead of Wall Street, where analysts were looking for sales of $3.11 billion.

The company’s adjusted EPS falls in line with its previously issued guidance range of between 43¢ and 45¢.

Boston Scientific’s cardiovascular business saw the biggest revenue jump year-over-year, climbing 25.3% to $1.27 billion, while medsurg increased 12.1% to $999 million and rhythm and neuro improved 11.8% to $858 million.

“I’m very pleased with our strong fourth quarter and full-year results, thanks to our team’s commitment and resilience in a challenging environment,” Boston Scientific Chair and CEO Mike Mahoney said in a news release. “I’m excited about the capabilities we’ve built, and I remain confident in our ability to execute in 2022 and against our long-range plans as we continue delivering meaningful innovations for patients around the world.”

Boston Scientific projects first-quarter adjusted EPS to come between 38¢ and 40¢ — with fiscal year 2022 EPS between $1.73 and $1.79. Wall Street analysts on average expected Q1 EPS of 41¢ and full-year EPS of $1.87.

BTIG analysts reduced their Boston Scientific sales estimates for Q1 and cut their margin outlook for the first part of 2022. But they reiterated their Buy rating.

Said analysts Marie Thibault and Sam Eiber: “We believe the margin cut is prudent in the current environment of supply chain constraints, inflation, staffing shortages and lingering Omicron impact. We continue to like BSX for its focus on high-growth markets and believe margin expansion remains within reach over the mid-term.”

Mike Matson at Needham & Co. sounded less optimistic: “While we expect consensus estimates to be reset to a more reasonable level, we believe that BSX faces several competitive headwinds (including from Abbott’s … Amulet), and we maintain our Hold rating.”

Executive editor Chris Newmarker contributed to this report. 

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