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


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.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: BSX

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