On Aug 13, 2014, we issued an updated research report on Boston Scientific Corporation (BSX), 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 quarters.

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 (BAYRY) 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. (ABAX) and Medtronic, Inc. (MDT), bothwith a Zacks Rank #2 (Buy).

Read the Full Research Report on BSX
Read the Full Research Report on MDT
Read the Full Research Report on BAYRY
Read the Full Research Report on ABAX


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