Boston Scientific Ends 2022 in Strong Fashion; No Change to Our Fair Value Estimate

Narrow-moat Boston Scientific reported solid full-year top-line results that were consistent with our expectations, but reported earnings fell well short of our projections thanks to an unanticipated reserve to accommodate any efforts by the Italian government to claw back some of its healthcare spending. However, after adjusting for this event, full-year earnings per share nearly hit our estimate on the nose. At this point, we’re leaving our fair value estimate intact, as we saw little in the quarter to change our longer-term projections for Boston, and our 2023 estimates remain bound by management’s outlook.