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.
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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