Boston Scientific's second quarter 2014 adjusted EPS of $0.21
exceeded the year-ago figure by 16.7% and exceeded the company's
guided range. The bottom line also beat the Zacks Consensus
Estimate by $0.01. Revenues went up 4% at CER to $1.873 billion and
steered ahead of the Zacks Consensus Estimate of $1.867 billion.
The top line also came in well within the guided range. The
improvement in the core segments in the second 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, Massachusetts 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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