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

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Summary:
Boston Scientific's first quarter 2014 adjusted EPS of $0.20 beat the year-ago figure by 25% and exceeded the company's guided range. The bottom line also exceeded the Zacks Consensus Estimate by $0.02. Revenues went up 4% at CER to $1.774 billion, although lagging of the Zacks Consensus Estimate of $1.793 billion but in line with the guided range. However, challenges continue to remain in the core businesses. Despite several initiatives undertaken by the company to revive its top line, we remain cautious as its core segments- implantable cardioverter defibrillator and DES continue to face challenges. However, we are 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. Accordingly, we are Neutral on the stock.

Overview:

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 and MedSurg.

Worldwide net sales by business

1Q14

Y/Y change

Change at CER

($ Mil)

Interventional Cardiology (IC)

497

-2%

1%

Peripheral Interventions (PI)

203

3%

5%

Cardiovascular

700

0%

2%

Cardiac Rhythm Management (CRM)

466

-3%

-2%

Electrophysiology

58

68%

68%

Rhythm Management

524

2%

3%

Endoscopy

314

3%

5%

Urology/Women's Health

125

6%

8%

Neuromodulation

109

23%

23%

MedSurg

548

7%

9%

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 , CRM , IC

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