Boston Scientific issued lackluster guidance on Wednesday, leading BSX stock to topple below its key moving averages.
For the year, the medical technology giant expects 6%-8% sales growth — on a strict as-reported basis and organically. That narrowly lagged Wall Street's call for a roughly 9% increase. The company expects to earn $1.73-$1.79 a share, minus some items. The high end of the prediction missed views for $1.87 a share.
Evercore ISI analyst Vijay Kumar also noted first quarter guidance for 5%-8% sales growth and adjusted profit of 38-40 cents per share was weak. But "it is understandable given the omicron impact," he said in a note to clients.
However, on today's stock market, BSX stock tumbled 4.7% to 41.44. That put shares below their 50-day and 200-day moving averages, according to MarketSmith.com.
BSX Stock: Earnings, Sales Narrowly Beat
Despite the light outlook, Boston Scientific beat fourth-quarter estimates. Adjusted profit advanced 96% to 45 cents per share. Sales increased about 15% on an as-reported and organic basis to $3.13 billion. BSX stock analysts called for income of 44 cents per share and $3.11 billion in sales.
Compared with pre-pandemic levels, sales grew around 7% organically, Evercore's Kumar said.
On a segment basis, the best growth came from Boston Scientific's cardiovascular medical devices. Sales in that business popped 25.3% to $1.27 billion.
Under the medical-surgery business, Boston Scientific reported 18.1% growth for its electrophysiology products. Electrophysiology is a means of assessing the heart's electrical system or activity. That division was the "highlight" for Kumar.
"Recent strength seems to be sustainable," he said. Kumar kept his outperform rating on BSX stock.
Overall, the medical-surgical business advanced 12.1% to $999 million. Boston Scientific's rhythm and neurology business generated $858 million, growing 11.8%.
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