Boston, MA 10/14/2013 (wallstreetpr) – After several quarters of lackluster performance, Boston Scientific Corporation (NYSE:BSX) has begun showing encouraging revival efforts. This is well captured in its Q2.13 results.
In the earnings for the most recent quarter, BSX posted $0.18 in EPS, smashing the consensus %0.16 and climbing over $0.17 EPS in the comparable quarter a year a go. The medical devices manufacturer and marketer also earned $1.81 billion in revenue for the quarter, exceeding average estimate of $1.78 billion. The revenue was also 2% up compared against a similar quarter in the prior year.
In essence BSX has noted bottom and top-lines which surpass its own guided range. In view of these and together with margin expansion, the company raised its EPS and revenue guidance for 2013. These are indications of good exploits coming soon for investors.
Although BSX, a $15.94 billion company, has had its share value decline, it has strengths to keep it off the red line. The company has had to alter a lot of its 2010 growth objectives but as the medical device market is expected to start responding well, the company could put massive profits on the wallet of investors.
The Cardiac Rhythm Management and Interventional Cardiology markets are expected to stabilize in the next three years which will lead to improvement in sales, albeit, slightly. The company has recently made ambitious update on its short-term (20140-2015) and long-term (2016-17) growth objectives.
This fresh view on growth objective by the management is indicative of possible and nearer turnaround. However, a lot of equities analysts have kept at the peripheries, perhaps until visibilities are obtained towards these objectives. So why does this leave the investors? At least 14 researchers have issued “hold” rating on the stock and nine a “buy”. The stock has no pessimistic sentiments of “sell” this far and it thus stand at an average rating of a “hold” at $9.69 price objective.
