Boston Scientific Corporation (NYSE:BSX) is set for continued growth in 2021 at the back of a diversified portfolio made up of an innovative pipeline. While the company did falter in 2020 owing to COVID-19 disruptions, a bounce-back is on the cards, according to Chief Executive officer Mike Mahoney.
Q4 and Full Year Results
The remarks come on the company reporting a 6.8% decline in revenues in Q4 that totaled $2.71 billion. Organic sales were down 8%, in line with an earlier communication in January. In contrast, analysts expected the company to post revenues of $2.81 billion.
Boston Scientific earned 23 cents a share, nearly half of what the company reported a year ago; likewise, they missed consensus estimates of 31 cents a share. The company reported revenues of $9.91 billion for the full year, down 7.7%, and missed consensus estimates by 0.6%.
BSX 2021 Outlook
In the first quarter, Boston Scientific expects revenue to grow by between 0 and 6%, with adjusted earnings expected in the 28-34 cents range. However, the first-quarter outlook still falls short of Wall Street expectations. Analysts expect the company to report earnings of 35 cents on revenues of $2.71 billion.
The medical technology company expects full-year adjusted earnings of between $1.50 and $1.60 a share. In contrast, analysts are projecting earnings of $1.63 a share. Sales are expected to grow by between 13% and 19%, with organic sales growing by between 12% and 18%. In contrast, analysts expect the company to post a 17% increase in sales at $11.6 billion.
The outlook does not factor in the acquisition of Preventice. If completed, the acquisition could add between $85 million and $100 million in sales in the second half of the year.
Boston Scientific has been on an impressive run since December, rallying by more than 10%. However, it is still down for the year after failing to recoup all the losses accrued last year. The underperformance stems on the company registering a strong sequential decline in overall financial performance.