Boston Scientific Corporation (BSX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $124 million, or $ 0.09 a share in the quarter, against a net loss of $142 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $415 million, or $0.30 a share compared with $362 million or $0.26 a share, a year ago. Revenue during the quarter grew 10.77 percent to $2,191 million from $1,978 million in the previous year period. Gross margin for the quarter expanded 72 basis points over the previous year period to 71.75 percent. Operating margin for the quarter period stood at positive 6.39 percent as compared to a negative 13.70 percent for the previous year period.
Operating income for the quarter was $140 million, compared with an operating loss of $271 million in the previous year period.
"Boston Scientific delivered excellent financial results in 2016, with accelerated revenue growth, improved profitability, and strong double digit adjusted EPS growth," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "Our strategy of category leadership in key markets and diversification into high growth adjacencies is working, and enabling continued investment in innovative medical technologies. I want to thank our employees for their commitment to advancing science and improving the lives of patients around the world."
For the first-quarter, Boston Scientific Corporation projects revenue to be in the range of $2,050 million to $2,100 million. Boston Scientific Corporation projects revenue to be in the range of $8,675 million to $8,875 million for financial year 2017. The company forecasts diluted earnings per share to be in the range of $0.18 to $0.21 for the first-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.86 to $0.91. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.29 to $0.31 for the first-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.22 to $1.26 on adjusted basis.
Working capital turns negativeWorking capital of Boston Scientific Corporation has turned negative to $348 million on Dec. 31, 2016 from positive $1,041 million on Dec. 31, 2015. Current ratio was at 0.90 as on Dec. 31, 2016, down from 1.43 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 69 days for the quarter from 94 days for the last year period. Days sales outstanding went up to 31 days for the quarter compared with 30 days for the same period last year.
Days inventory outstanding has decreased to 71 days for the quarter compared with 82 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 17 for the same period last year.
Debt comes down marginally
Boston Scientific Corporation has recorded a decline in total debt over the last one year. It stood at $5,484 million as on Dec. 31, 2016, down 3.40 percent or $193 million from $5,677 million on Dec. 31, 2015. Total debt was 30.31 percent of total assets as on Dec. 31, 2016, compared with 31.31 percent on Dec. 31, 2015. Debt to equity ratio was at 0.81 as on Dec. 31, 2016, down from 0.90 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
