Boston Scientific gives earnings forecast with an eye on more acquisitions
Boston Scientific released its full-year earnings forecast that fell below Wall Street expectations as the company reiterated its plans to make several more acquisitions in the coming year.
The company estimated it expects to bring in revenues of $9.65 billion to $9.80 billion with an adjusted share price of $1.35 to $1.39 for 2018. On average, analysts were forecasting revenues of $9.61 billion and $1.38 per share, Reuters reported.
The company said during a conference call that it will continue to focus on acquisitions this year.
“We do have a pretty active M&A appetite,” CEO Michael Mahoney said during the call, adding that the company forecasts about $500 million to be available from its cash flow to spend in 2018.
Last week, the company shelled out $90 million to invest in privately held device maker Millipede with an acquisition option agreement. Last year, Boston Scientific paid $435 million for Swiss medical device maker Symetis.
Boston Scientific also said it plans to launch its Lotus Edge heart valves in the U.S. and European markets in 2019. The company recalled its Lotus range early last year following reports of problems with the locking mechanism.
The company reported a net loss of $615 million, or 45 cents per share, for the quarter ended Dec. 31, due to an $842 million charge from changes to the U.S. tax law.