Tomahawk, WI 7/26/2013 (Basicsmedia) – Boston Scientific Corporation (NYSE:BSX) announced its 2Q2013 financial results on July 25, 2013. The adjusted earnings per share (EPS) of Boston Scientific have been $0.12, compared to $0.11 per share in 2Q2012. Still, when the adjustments of amortized expenses have been taken into account, the adjusted EPS of Boston for 2Q2013 was $0.18, marginally higher than $0.17 per share for the year ago quarter. Further, the EPS was higher than the guidance of $0.14 to $0.17 per share by the company and the consensus of analysts forecasting at $0.16 per share for 2Q2013.

Revenues of Boston Scientific declined 1% from the same period last year to $1.809 billion in 2Q2013. Market had anticipated revenues of $1.779 billion, while the company had projected revenues between $1.740 billion and $1.800 billion for 2Q2013. Boston Scientific mentioned that sales grew 29% in the BRIC nations, namely Brazil, Russia, India and China.

The major revenues of Boston Scientific are from its three global segments consisting of Cardiovascular, MedSurg and Rhythm Management. The main revenues of the company are from cardiovascular segment, which includes Peripheral Interventions and Interventional Cardiology. The revenues from these two divisions were $199 million, a gain of 5% and $520 million, a loss of 3%, respectively. The loss in Interventional Cardiology segment was mainly due to the global revenues from coronary stent systems fell 10.6% to $304 million, influenced by the drop of 9.7% in the sales of drug-eluting stunts and plunging of 22.7% in the sales of bare-metal stunts. The Rhythm Management segment disappointed by a 2% slip and the CRM revenues also declined 2.7% on a global basis.

Boston Scientific has been announcing new product launches in the recent past to revive the segments of Interventional Cardiology and CRM. However, the failure of these two segments to perform better is an indication that the strategies of the company have not been fruitful until now. The increase in sales of other segments such as Endoscopy, up 8%, Urology/Women’s Health, rising 1% and Neuromodulation, gaining 21%, has not sufficient to arrest the slide in global sales of Boston Scientific.

In spite of the above setbacks, Boston Scientific presented its guidance for 3Q2013 and FY2013. The company anticipates adjusted EPS in the range of $0.14 to $0.16 and revenues between $1.700 and $1.860 billion for 3Q2013. Analysts have forecast EPS of $0.16 per share and revenues of $1.715 for 3Q2013. For FY2013, the company raised its revenue guidance to range between $7.050 and $7.170 billion and EPS guidance between $0.67 and $0.71. The market consensus for FY2013 for Boston Scientific is EPS of $0.67 on revenues of $7.052 billion.

In spite of the challenges in its different segments, Boston Scientific was able to beat market expectations, after several disappointing quarters earlier. The stock has closed at $9.61 on July 24, 2013 but gained nearly 12% on the announcement of the results to end at $$10.83 on July 25, 2013. The stock was dithering at $4.97 on July 26, 2012 but has more than doubled in one year, with the rise in the share prices of Boston Scientific coming mostly from the beginning of 2013. Still, it is early days to determine whether the turnaround efforts of the company will bring concrete results and provide strong growth in the near future.

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