For some reason analysts estimates on BSX have been below what has actually been reported from BSX accounting department to the SEC through their quarterly filings for years. Why analysts continually get their estimates wrong is beyond me. I can not answer that. I would ask that you go to the left side of your screen and click on analysts estimates on yahoo and see for yourself what I am speaking of. DO not take my word for it. See the second section titled Earnings history. There you can see what the analyst estimate was for the past year and what was actually calculated by yahoo from the numbers reported by BSX.
While you are there also look at the DEC. 2010 earnings number that was reported. Forbes is saying that BSX earned $0.20 per share a year ago. Yahoo is saying that BSX earned $0.12 in that same period. Why the descrepancy I am not sure. but it will be the number that Q4 is measured against. I am guessing it has to do with different accounting practices between yahoo and Forbes. Either way BSX beat that estimate and all other wall street estimates for about 2 years now. Last March the analyst predicted $0.04 cents EPS and BSX came in at $0.14 EPS by yahoo's calculations. I know that when BSX states EPS they many times do it excluding one time charges (lawsuits won, lawsuits lost etc.)So I have seen in the past BSX states EPS is say 22 cents and then when yahoo crunches the numbers their way it comes out different. Almost always lower and then they post it on their website say a week or 2 after the earnings call and the numbers never match.
Also on that same page notice the only numbers that are in red have to do with analysts estimates. they continue to predict EPS at say 8 cents well if you posted an actual EPS a year ago of 12 cents then you are predicting 66 percent of a year agos EPS. or a drop of 33 percent. Even though BSX has averaged EPS of 12 cents for the past year. SO again it has to do with analyst predictions being low consistently.
I think the top line number of 1.91 is very close to where BSX will come in at. THis number has been very consistent also for years between 1.9 billion to 2 billion But keep in mind that BSX went through at least a 5 percent reduction in force in the past year. So BSX management expect that so it will not effect EPS as now BSX is a leaner company.
I do not think it matters what number is published. At least not to the stock price. THe stock price is basicly driven by money market managers with billions and billions of dollars that they are investing. I am sure these guys with those kinds of assets at their control have their own people who crunch numbers for them. Some Harvard accounting grad.
Only small time investor like you and me read this message board and try to rely on Forbes and yahoo to get their numbers right so we can invest properly. Unfortunately it puts once again the little guy at a disadvantage because these things are not standardized.
So I'll help you and speak plainly and try and point you to why I believe what I believe and I hope you do the same for me or the next guy. We all can leaarn something.