Stock Alert for Boston Scientific Corp. (BSX)

Boston Scientific Corp. (BSX) is a global developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. During the year ended December 31, 2010, the Company’s products were offered for sale by seven business groups: CRM, Cardiovascular, including International Cardiology and Peripheral Interventions businesses; Electrophysiology; Endoscopy; Urology/Women’s Health; Neuromodulation, and Neurovascular. During 2010, it had 28% of net sales from CRM business, 42% from Cardiovascular group, 2% from Electrophysiology business, 14% form Endoscopy business, 6% from Urology/Women’s Health business, 4% from Neuromodulation business, and 4% from Neurovascular business.

Source: Reuters.com, SEC Filings.

Recent News

BSX soared 8.20% to close Thursday at $7.26 following the medical device maker’s strong earnings report.  The stock saw trading volume hit 48.90 million yesterday, nearly three times the 10-day average. BSX has so far reached a 52-week high of $7.96, its 52-week low being $5.04.  It is currently trading above its 50-day moving average of $6.98 and above its 200-day moving average of $7.13.

BSX s net income came to $146 million, or $0.10  per share, for the second quarter ended June 30, 2011. That compares to a net income of $98 million, or $0.06 per share, a year ago.  Adjusting to exclude net charges totaling $92 million, earnings were $0.12 per share, beating the $0.09 per share expected by analysts polled by FactSet Research.

Sales for the quarter were $1.98 billion, which is at the higher end of the Company’s previous guidance range and representing an increase of 2.6% from $1.93 billion in the prior-year quarter. Analysts were looking for sales of $1.9 billion.

Investors also welcomed the news that the Natick, Mass.-based company would buy back up to $1 billion of its stock, after reducing  its gross debt to $4.2 billion which is consistent with its targeted capital structure.  BSX president and CEO Ray Elliot said this repurchase program reflects BSX’s confidence in the strength of its long-term business prospects, earnings growth potential and its ability to generate strong cash flow.

Following the upbeat earnings, the Company boosted its earnings guidance for the full year to a range of $0.64 to $0.70 per share, up from its prior view of $0.58 to $0.68.

Technical Analysis

Source: http://stockcharts.com

BSX is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

BSX’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

Comparative Analysis

Source: Thomson Financial

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