Boston Scientific Corporation (BSX): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Boston Scientific's third quarter 2014 adjusted EPS of $0.20 exceeded the year-ago figure by 17.6% but coincided with the Zacks Consensus Estimate and the upper end of the company's adjusted EPS guidance range of $0.18 $0.20. Revenues went up 7% at CER to $1.846 billion and also exceeded the Zacks Consensus Estimate. The top line also came in well within the guided range. The improvement in the core segments in the third quarter is encouraging and the increased guidance indicates that this growth is sustainable. We are also optimistic about the recent update on the company's growth objective. The company is focusing on strategic initiatives like portfolio expansion, restructuring initiatives which include the 2014 restructuring plan, focus on emerging markets and share repurchases. Yet, margin trend, currency headwinds and fierce competition in this sector continue to pose challenges. Hence, we are Neutral on the stock.


Overview:

Headquartered in Natick, MA and founded in 1979, Boston Scientific Corporation (BSX) is a manufacturer of medical devices and products used in various interventional medical specialties worldwide. The company has adopted the organic as well as inorganic routes for success.

Effective Jan 1, 2013, Boston Scientific made some changes in its reporting segments in order to reorganize its business from geographic and regional to fully operationalized global business units. As a result, the company currently has three new global reportable segments consisting of Cardiovascular, Rhythm Management and MedSurg.

Worldwide net sales by business

3Q14

Y/Y change

Change at CER

($ Mil)

Interventional Cardiology (IC)

508

8%

8%

Peripheral Interventions (PI)

215

8%

9%

Cardiovascular

723

8%

8%

Cardiac Rhythm Management (CRM)

480

3%

4%

Electrophysiology

54

57%

57%

Rhythm Management

534

7%

7%

Endoscopy

336

6%

7%

Urology/Women's Health

137

5%

5%

Neuromodulation

115

0%

3%

MedSurg

588

4%

5%

Revenue Breakup

The company is one of the leading players in the interventional cardiology market with its coronary stent product offerings. Boston Scientific markets next-generation internally-developed and self-manufactured Promus Element everolimus-eluting stent platform in all major markets worldwide as well as Taxus paclitaxel-eluting stent line including the third-generation Taxus Element stent system. The company also markets balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures, as well as intravascular ultrasound (IVUS) imaging systems.

Within the CRM segment, the company deals with implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities. The portfolio includes implantable cardioverter defibrillator (ICD) systems, cardiac resynchronization therapy defibrillator (CRT-D) systems and cardiac resynchronization therapy pacemaker (CRT-P) systems.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: BSX , IC , CRM , ICD

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