On Aug 13, 2014, we issued an updated research report on
Boston Scientific Corporation
), a leading medical devices company. Despite challenging economic
conditions, competitive environment and currency headwinds, Boston
Scientific posted better-than-expected second-quarter 2014 results
handily beating both revenues and earnings. The stock
currently carries a Zacks Rank #3 (Hold).
Boston Scientific's second-quarter 2014 adjusted EPS of 21 cents
beat the year-ago figure by 16.7% and exceeded the company's guided
range. The bottom line also exceeded the Zacks Consensus Estimate
by a penny. 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 was on par with the guided range.
Over the recent past, the company has been targeting new product
launches to revive the sales of the beleaguered Interventional
Cardiology and CRM segments. The improved performance in these core
segments in the reported quarter proves beyond doubt that the
measures undertaken are working effectively toward countering
ongoing challenges. The raised guidance for 2014 also symbolizes
the likeliness of this core market growth to sustain in the coming
Boston Scientific is resorting to all available means in order
to return to growth. To revive its top line, the company is
focusing on strategic initiatives to drive growth and
profitability. The company has a strong pipeline of products under
development, the launch of which should boost the top line. In this
respect, we must mention the impending acquisitions of the
Interventional Division of German healthcare major Bayer AG (
) and IoGyn, Inc., a pre-commercial stage company apart from the
takeover of Bard EP.
We are also encouraged by the focus on emerging markets,
especially India and China. Boston Scientific plans to invest
approximately $150 million in China over the next 5 years to build
a local manufacturing operation.
Other Stocks to Consider
Two better-ranked medical device stocks that are worth a look
are Abaxis, Inc. (
) and Medtronic, Inc. (
), bothwith a Zacks Rank #2 (Buy).
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