Boston Scientific Sinks on Weak Quarterly Top-Line Guidance
By Kim Khan
Investing.com - Medical device maker Boston Scientific (NYSE:BSX) stumbled out of the gate Tuesday, with investors disappointed with guidance released this morning.
Shares fell 7.6% in morning trading.
Boston Scientific (NYSE:BSX) said it still see fourth-quarter earnings of 42 to 45 cents per share, in line with the consensus of 44 cents per share according to forecasts compiled by Investing.com.
But it sees revenue of about $2.9 billion, lower than consensus expectations of $2.93 billion. That would be a rise of about 13.4% from the year-ago period, near the lower end of its previous guidance of a rise of 13% to 15%.
Expectations had been high Boston Scientific’s upcoming earnings. In late December Cowen boosted its price target on shares to $52 from $47, saying that 2020 guidance should “fuel the bull case while leaving upside to the top- and bottom-line ranges."
Before today’s drop, shares were up nearly 20% in the last three months.
The company reports earnings on Feb. 5.
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