Boston Scientific slides to Q4 red on $861m tax charge

An estimated $861 million tax charge pushed Boston Scientific (NYSE:BSX) into the red during the fourth quarter and slashed full-year profits by 70%, but the medical device maker still managed to meet or beat Wall Street’s expectations.

Marlborough, Mass.-based Boston Scientific posted losses of -$615 million, or -45¢ per share, on sales of $2.41 billion for the three months ended Dec. 31, 2017, compared with Q4 profits of $124 million, or 9¢ per share on sales growth of 9.9%. Adjusted to exclude one-time items including the tax sting, earnings per share were 34¢, dead in line with The Street, where analysts were looking for sales of $2.38 billion.

Full-year profits were $104 million, or 8¢ per share, on sales of $9.05 billion, for a -70.0% bottom-line slide on sales growth of 7.9% compared with 2016. Adjusted EPS came in at $1.26, again even with analysts, who forecast sales of $9.01 billion.

“Our team delivered excellent fourth-quarter and full-year results, fueled by the strength of our diversified portfolio and global commercial execution,” chairman & CEO Mike Mahoney said in prepared remarks. “We look forward to building on our momentum and continuing to make a meaningful difference for patients in 2018.”

The $861 tax charge, taken based on the passage of tax reform legislation last year, was partially offset by that same measure as it lowered the corporate tax rate, Boston Scientific said.

Adjusted EPS are expected to be between $1.35 and $1.39 this year on sales of $9.65 billion to $9.80 billion, the company said. First-quarter adjusted EPS are pegged at 30¢ to 32¢ on sales of $2.32 billion to $2.35 billion.

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