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Boston Scientific Shows Strength on Core Market Stabilization - Analyst Blog

On Nov 7, 2014, we issued an updated research report on leading medical devices company Boston Scientific Corporation ( BSX ). Despite challenging economic conditions, a competitive environment, pressure on margins and currency headwinds, Boston Scientific posted a decent third-quarter 2014 with earnings in line with the Zacks Consensus Estimate and a beat on the revenue front. The stock currently carries a Zacks Rank #2 (Buy).

Boston Scientific's third-quarter 2014 adjusted earnings per share (EPS) of 20 cents exceeded the year-ago figure by 17.6%. However, adjusted EPS coincided with the Zacks Consensus Estimate as well as the upper end of the company's adjusted EPS guidance range of 18-20 cents.On the other hand, revenues went up 7% at CER to $1.846 billion and also outpaced the Zacks Consensus Estimate. The top line also figured within the company-guided range.

The improvement in the core segments during the third quarter reflects that the measures undertaken by the company are working effectively to counter the ongoing challenges. The increased guidance for 2014 further reinforces the fact that this core market growth retains a sustained momentum.

We are also optimistic about the recent update on the company's growth objectives. Boston Scientific is focusing on strategic initiatives like portfolio expansion, restructuring initiatives which include the 2014 restructuring plan, focus on emerging markets and share repurchases. In this regard, we must mention the acquisition of the Interventional Division of German healthcare major Bayer AG and the impending takeover of IoGyn, Inc. - a pre-commercial stage company, apart from the buyout of Bard EP - the electrophysiology business of C.R. Bard Inc. ( BCR ).

The company has a strong pipeline of products under development, the launch of which should drive the top line, moving ahead. We are 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

Other medical product stocks that are also worth a look include Abaxis, Inc. ( ABAX ) and ICU Medical, Inc. ( ICUI ), both with the same Zacks Rank as Boston Scientific.

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BOSTON SCIENTIF (BSX): Free Stock Analysis Report

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ICU MEDICAL INC (ICUI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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