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.
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
Worldwide net sales by business
Change at CER
Interventional Cardiology (IC)
Peripheral Interventions (PI)
Cardiac Rhythm Management (CRM)
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.
Boston Scientific Corporation (BSX): Read the Full
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