Boston Scientific (NYSE:BSX) shares ticked up this morning despite fourth-quarter results that missed the consensus forecast.
The Marlborough, Mass.-based company posted profits of $152 million, or 10¢ per share, on sales of $2.7 billion for the three months ended Dec. 31, 2020, for a 96.2% bottom-line slide on a sales decline of -6.8%.
Adjusted to exclude one-time items, earnings per share were 23¢, 8¢ behind Wall Street, where analysts were looking for sales of $2.8 billion.
Boston Scientific experienced particular hits in its specialty pharmaceuticals business (-38.5% decline) and its cardiovascular arm (-12% drop). The rhythm and neuro segment saw a -6.1% dip, with its interventional cardiology sub-business seeing a -21.9% fall.
The company highlighted that, within its organic results (which saw a fourth-quarter revenue decline of 8% year-over-year), there was a negative impact associated with the conversion of U.S.-based Watchman customers to a consignment inventory model and the transition to the next-generation Watchman FLX left atrial appendage closure device.
Despite the negative impact made by the transition, both Boston Scientific and analysts are bullish on the future of Watchman, with chairman & CEO Mike Mahoney offering optimism on the momentum the system currently has back in December, followed by UBS Investment Bank listing the company among its 21 most compelling stock investment selections for 2021, citing Watchman as a potential growth driver.
“As we look to 2021 and beyond, we are well-positioned given the strength of our global team and our diversified portfolio,” Mahoney said in a news release. “I’m excited about our outlook for growth—from our category leadership positions to our innovative pipeline and commercial execution—and I am incredibly proud of how Boston Scientific delivered on our mission to transform lives amid the challenges of 2020.”
Boston Scientific projects revenue growth in the first quarter of 2021 with adjusted EPS anticipated to come in between 28¢ and 34¢ per share. The company also expects full-year revenue growth ranging between about 13% and 19%, with adjusted EPS in a range of $1.50 to $1.60 per share.
BSX shares were up 0.6% at $36.87 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.9%.
