Wall Street shrugged today after Boston Scientific (NYSE:BSX) set out its long-term financial goals, despite a revenue growth target that’s right in line with the consensus.
The Marlborough, Mass.-based medical device maker said it’s eyeing double-digit adjusted earnings per share from 2019 to 2022, on an organic compound annual growth rate of 6% to 9% during 2020 to 2022. Analysts on The Street are looking for an organic revenue CAGR of 8%.
Boston Scientific said the adjusted EPS growth target is driven by an initiative to improve adjusted operating margins by 50 to 100 basis points over 2019 to 2022. The company is looking to shift about 35% of its sales to high-growth markets, compared with about 25% today, and to cut low-margin sales to roughly 20%, versus about 30% today.
“This is an exciting time for Boston Scientific to help more patients live better and longer lives through the benefits provided by our current medical devices and treatment therapies, while we invest in and develop a robust, long-term pipeline of future technologies,” chairman & CEO Mike Mahoney said in prepared remarks. “We have an outstanding global team that is focused on creating more value for patients, customers and shareholders, and delivering revenue growth faster than our served markets and in the top tier for our sector.”
Boston said it spent roughly $1 billion on R&D last year and announced 10 acquisitions. Plans are under way to launch approximately 75 new products by 2022, many in “adjacencies that are expected to expand our leadership in $22 billion in high-growth markets by 2022,” the company said.
BSX shares were off -1.0% to $41.30 apiece today in mid-day trading.
