On Mar 04, 2014, we issued an updated research report on
Boston Scientific Corporation
), a leading medical devices company. Despite challenging
economic conditions, competitive environment, pressure on core
segments and a larger-than-expected currency headwind, Boston
Scientific managed to post healthy fourth-quarter 2013 results
handily beating both revenues and earnings.
We are also optimistic about the recent update on the
company's growth objective and its 2014 restructuring plan
announced last October that convey significant new additions
The stock currently carries a Zacks Rank #3 (Hold).
Boston Scientific's fourth-quarter 2013 adjusted EPS of 21
cents beat the year-ago figure by 16.7% and also exceeded the
company's guided range. The bottom line also exceeded the Zacks
Consensus Estimate by a couple of cents. Revenues went up 5% at
CER to $1.838 billion, ahead of the Zacks Consensus Estimate of
$1.829 billion as well as the guided range of $1.780−$1.830
However, for quite a long time, the US defibrillator and stent
markets have remained as major overhangs. Despite several
initiatives undertaken by the company to revive its top line, we
remain cautious as its core segments - Cardiac Rhythm Management
(CRM) and Drug-Eluting Stent (DES) (contributing a total of 43%
of sales in 2013) - are still taking a toll on the numbers.
According to the company, the challenging scenario at present
fails to betray any assurance that the size of the CRM and DES
markets will increase above existing levels or that the company
will be able to increase its market share or net sales in these
segments in the near term.
Meanwhile, Boston Scientific is resorting to all available
means in order to return to growth. To revive its top line, the
company is focusing on strategic initiatives to drive growth and
profitability. The company has a strong pipeline of products
under development, the launch of which should boost the top line.
We are encouraged by the focus on emerging markets, especially
India and China. Boston Scientific plans to invest approximately
$150 million in China over the next 5 years to build a local
Other Stocks to Consider
Some better-ranked medical devices stocks that are worth a
). All of these three stocks carry a Zacks Rank #2 (Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
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