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Medical device maker Boston Scientific ( BSX ) popped to a 10-year high Wednesday after it reported a strong Q1 and raised its guidance. Boston Scientific’s adjusted earnings totaled 28 cents in the quarter, up 33% from the year-earlier quarter and beating analysts’ consensus by four cents, according to Thomson Reuters. Revenue rose 11% to $1.96 billion, beating consensus by about $50 million. Boston Scientific added more than $100 million to its full-year revenue guidance range, now $8.08 billion to $8.23 billion, up 9% at the midpoint vs. $7.48 billion last year. It also added two cents to its full-year EPS guidance, now 64 to 69 cents. The company said that its sales in the current quarter should be $2.01 billion to $2.06 billion, up 10.6% at the midpoint from $1.84 billion a year ago and on the high side of consensus. Its earnings guidance of 25 to 27 cents a share was in line with Wall Street’s estimate and up from 21 cents last year. Boston Scientific stock was up 9.5% in morning trading on the stock market today , near 21.50 and hitting its highest point since May 2006. In a research note Wednesday, RBC Capital Markets analyst Glenn Novarro broke down the results. “Cardiovascular revenues of $790 million (+13% year-over-year constant currency) easily topped our estimates and consensus,” he wrote. “We believe cardiovascular results were led by share gains for Synergy (drug-eluting stent) in the U.S., robust adoption of Watchman (left atrial appendage closure device) and strong peripherals sales. “Meanwhile, MedSurg sales of $682 million (+28% year-over-year constant currency, +11% year-over-year organic) also topped expectations, driven by strong Endoscopy results, owing to Spyglass DS (direct visualization system) and the launch of the Axios stent system, and Urology/Women’s Health.” On the downside, Novarro said that cardiac rhythm management sales were light, which he says is due to Medtronic ( MDT ) taking share in the implantable cardioverter defibrillator market. However, Evercore ISI analyst Vijay Kumar wrote that Monday’s approval of a new MRI-safe suite of pacing products should help boost the division. Boston Scientific’s growth has been picking up the last three quarters, helping drive the stock to a strong IBD Composite Rating of 94. Scalper1 News
Scalper1 News