Healthcare Stocks Mostly Unchanged as a Group; Boston Scientific Sinks Over 5% After Disclosing Restructuring Program

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Top Healthcare Stocks

JNJ +0.30%

PFE +0.04%

ABT +0.30%

MRK -0.39%

AMGN +0.81%

Healthcare stocks are little changed, with NYSE Healthcare Sector index declining about 0.1% while shares of healthcare companies in the S&P 500 are down less than 0.1% as a group.

In company news, Boston Scientific ( BSX ) is down 5.5% at $11.61 a share, little changed since its initial slide this morning that followed the medical device conglomerate's announcing a restructuring program expected to cut costs by between $150 million and $200 million per year while reducing headcount by between 1,100 and 1,500 positions worldwide.

BSX expects to take a pre-tax charge of between $175 million and $225 million as a result of the restructuring program, slated to start before the end of the year with a completion target of late 2015.

The company reported Q3 earnings of $0.17 per share, up $0.01 from a year ago and beating the Capital IQ consensus by $0.08 per share. Revenue was unchanged year over year at $1.74 billion, roughly in-line with forecasts.

For FY13, the company is expecting adjusted EPS between $0.69 and $0.71 per share, topping analyst estimates looking for $0.44 per share. Sales are seen between $7.09 billion and $7.14 billion, straddling the Street view looking for $7.1 billion in sales.

Separately, the company said Chief Financial Officer Jeffrey Capello will retire before Dec. 31, and will be replaced by corporate controller Daniel Brennan.

In other sector news,

(+) MMSI, (+16.0%) Q3 earnings of $0.25 per share top estimates by $0.12. Revenue increases 20.1% year over year to $115.2 mln, also beating expectations by $6.3 mln.

(-) VAR, (-6.8%) Q4 earnings of $1.08 per share miss by $0.03. Revenue climbs 1.8% over year-ago period to $770 mln, also trailing expectations by $8.14 mln. Issues downside Q1, FY14 guidance, including Q1 EPS lagging Street view by at least $0.05 per share.



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.

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Referenced Stocks: BSX

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