Boston Scientific Corporation (BSX) has reported a 43.56 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $290 million, or $0.21 a share in the quarter, compared with $202 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $397 million, or $0.29 a share compared with $378 million or $0.28 a share, a year ago. Revenue during the quarter grew 9.98 percent to $2,160 million from $1,964 million in the previous year period. Gross margin for the quarter contracted 92 basis points over the previous year period to 69.91 percent. Total expenses were 83.15 percent of quarterly revenues, down from 85.08 percent for the same period last year. This has led to an improvement of 193 basis points in operating margin to 16.85 percent.
Operating income for the quarter was $364 million, compared with $293 million in the previous year period.
"We are pleased with our performance in the first quarter as we delivered excellent growth across our various businesses and geographies," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "At the same time, we are investing in innovation that will strengthen our category leadership strategy while aiming to deliver sustainable double digit adjusted earnings per share growth."
For financial year 2017, Boston Scientific Corporation projects revenue to be in the range of $8,800 million to $8,900 million. The company forecasts diluted earnings per share to be in the range of $0.81 to $0.86. It company forecasts diluted earnings per share to be in the range of $1.22 to $1.26 on adjusted basis.
For the second-quarter 2017, Boston Scientific Corporation projects revenue to be in the range of $2,185 million to $2,215 million. The company forecasts diluted earnings per share to be in the range of $0.18 to $0.21. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.30 to $0.32.
Working capital turns negative
Working capital of Boston Scientific Corporation has turned negative to $464 million on Mar. 31, 2017 from positive $556 million on Mar. 31, 2016. Current ratio was at 0.87 as on Mar. 31, 2017, down from 1.21 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 186 days for the last year period. Days sales outstanding went down to 56 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 67 days for the quarter compared with 162 days for the previous year period. At the same time, days payable outstanding went up to 40 days for the quarter from 35 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 $5,514 million as on Mar. 31, 2017, down 2.87 percent or $163 million from $5,677 million on Mar. 31, 2016. Total debt was 30.73 percent of total assets as on Mar. 31, 2017, compared with 32.04 percent on Mar. 31, 2016. Debt to equity ratio was at 0.78 as on Mar. 31, 2017, down from 0.88 as on Mar. 31, 2016. Interest coverage ratio improved to 6.39 for the quarter from 4.97 for the same period last year. 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
