DJ:Bostin Sci Beats : 2000 EPS View 'Too Aggressive' -CEO
26 Oct 19:53
Though the $62 million in inventory writeoffs came as a surprise to some
analysts, by in large, Boston Scientific's third-quarter earnings report
provided little in the way of surprises for Wall Street.
Better-than-expected gross margin levels were cited as the reason the company
beat the Street's earnings estimates.
"It wasn't really a big surprise one way or another," said Morgan Stanley Dean
Witter Analyst Glenn Reicin. "I really don't think it is going to change
anyone's position."
What could change, however, are analysts' estimates for next year.
During a conference call Tuesday night, Tobin advised Wall Street analysts
that consensus estimates for 2000 were "too aggressive."
First Call/Thomson Financial's consensus estimate for next year is $1.29 a
share. The current estimate for 1999 is $1.01.
"Now people are going to have to lower their numbers," said Hambretch & Quist
analyst Robert Faulkner.
Since Boston Scientific preannounced third-quarter earnings last month, many
Wall Street analysts have turned their concerns toward estimates for the fourth
quarter and next year.
Several analysts have lowered their views, claiming that Boston Scientific has
unofficially advised them of growth estimates in the high single digits.
Meanwhile, Tobin said in an interview with Dow Jones Newswires Tuesday evening
that 2000 estimates are tentatively being pegged at levels about a dime lower
than figures the market cited four or five months ago.
A major concern remains how Boston Scientific will fair next year after its
rivals launch their new line of products.
Boston Scientific is expected to launch a new stent next year, nicknamed the
"Conformer," and the Nir-With-Sox stent, which was recalled last year, is
expected to be relaunched in February.
"There is still a concern that they are moving in the wrong direction in their
stent business over the next 12 months," said Jonathan Foster, an analyst with
Gerard Klauer Mattison.
-Johanna Bennett, Dow Jones Newswires; 201-938-5240;
johanna.bennett@dowjones.com
(END) DOW JONES NEWS 10-26-99
07:53 PM |
