Boston Scientific Corporation
) is scheduled to report its first-quarter 2014 results before
the opening bell on Apr 29. Last quarter, Boston Scientific
posted a positive earnings surprise of 10.53% while the
four-quarter trailing average beat is pegged at 9.76%. Let's see
how things are shaping up for this announcement.
Factors at Play
Despite challenging economic conditions, competitive
environment, pressure on core segments and a larger-than-expected
currency headwind, Boston Scientific has managed to successfully
move on with its strong pipeline of products. The company has
begun the year 2014 on an encouraging note with the launch of the
OffRoad Re-Entry Catheter System in the U.S and the receipt of CE
mark in Europe for its WallFlex Esophageal Stent in February.
Soon after, Boston Scientific obtained CE mark for its REBEL
Platinum Chromium Coronary Stent System and Ingevity MRI Pacing
Leads in March. Moving on, earlier this month, the company won
the U.S. Food and Drug Administration (FDA) approval for a bunch
of defibrillators and heart failure devices. Also, it won the
U.S. Food and Drug Administration (FDA) and CE mark approval for
the Expect Slimline (SL) Needle which will be used for Endoscopic
Ultrasound-Fine Needle Aspiration (EUS-FNA) procedures.
Besides, the company is focusing on strategic initiatives like
restructuring actions which include the 2014 restructuring plan,
emerging markets expansion and share repurchases.
However, for quite a long time, the US defibrillator and stent
markets remain as major overhangs.Despite several initiatives
undertaken by the company to revive its top line, we remain
cautious as its core segments - implantable cardioverter
defibrillator and drug-eluting stent (DES) are still taking a
toll on the numbers.
Our proven model does not conclusively show that Boston
Scientific is likely to beat earnings this quarter. It is because
a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. That is not the case here as you will see
BostonScientific's earnings ESP is 0.00%, as the Most Accurate
estimate and the Zacks Consensus Estimate both stand at
BostonScientific's Zacks Rank #3 (Hold) when combined with a
0.00% ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
a negative estimate revision momentum.
Other Stocks to Consider
Here are two companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Myriad Genetics Inc.
) has an earnings ESP of +10.87% and sports a Zacks Rank #1
(Strong Buy). Myriad Genetics will be reporting first-quarter
earnings on May 6.
Cardinal Health, Inc.
) has an earnings ESP of +1.00% and holds a Zacks Rank #2 (Buy).
Cardinal Health will report third-quarter fiscal 2014 earnings on
We note that,
Align Technology Inc.
) which surpassed its first-quarter 2014 earnings on Apr 23, had
an earnings ESP of +13.89% and carried a Zacks Rank #1 (Strong
ALIGN TECH INC (ALGN): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
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