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    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.

    Share Statistics (28-July-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q1

    2010

    Q1

    2011

    %

    Chg

    Symbol BSX Revenue, $Mn 8,188.0 7,806.0 -4.7% 1,960.0 1,925.0 -1.8%
    Current price $7.26 Gross marg. 68.5% 66.7% -2.6% 66.2% 67.2% 1.5%
    52wk Range: $5.04-$7.96 Oper. margin -8.4% 16.7%
    Avg Vol (3m): 20,384,900 Net margin -12.5% -13.6% 8.8% -81.1% 2.4% -103.0%
    Market Cap. 11.09B              
    Shares Outstanding 1.53B EPS, $ 0.27 0.03 -88.9% -0.31 0.02 -106.5%

    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.

    Financial Strength (28-July-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.31 1.40 2.10 0.64
    Current Ratio (MRQ) 1.75 1.70 2.67 1.01
    LT Debt to Equity (MRQ) 41.08 183.87 21.49 120.34
    Total Debt to Equity (MRQ) 43.31 228.49 26.19 158.43
    Interest Coverage (TTM) -6.13 2.99 1.76 19.9

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 31 polled investment analysts. Against the Boston Scientific Corp company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest 5 3 20 2 1 0
    4 weeks ago 5 3 21 1 1 0
    2 months ago 4 3 20 1 1 0
    3 months ago 4 3 19 2 1 0
    Last year 4 3 16 1 1 0

    The 22 analysts offering 12-month price targets for BSX have a median target of 7.58, with a high estimate of 11.00 and a low estimate of 6.00. The median estimate represents a 12.89% increase from the last price of 6.71.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 22 1,902.19 1,952.00 1,866.00 2,016.82
    Quarter Ending Dec-11 22 1,975.86 2,027.44 1,913.00 2,087.47
    Year Ending Dec-11 25 7,767.31 8,330.00 7,615.33 8,058.46
    Year Ending Dec-12 25 7,918.18 8,216.00 7,722.00 8,340.86
    EARNINGS (per share)
    Quarter Ending Sep-11 22 0.08 0.13 0.06 0.09
    Quarter Ending Dec-11 22 0.10 0.13 0.08 0.11
    Year Ending Dec-11 26 0.40 0.46 0.35 0.41
    Year Ending Dec-12 26 0.49 0.59 0.39 0.55
    LT Growth Rate (%) 13 10.32 24.00 2.00 10.35

    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

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July28-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    St. Jude Medical Inc. STJ 47.08 15.48B 14.35 12.90 2.72 2.54
    Johnson & Johnson JNJ 65.50 179.54B 13.18 12.38 2.74 2.60
    Abbott Laboratories ABT 52.02 80.85B 11.23 10.45 2.08 1.99
    Medtronic Inc. MDT 36.36 6.05M 10.51 9.62 0.36 0.35
    Medical Instruments & Supplies Median       17.43 n/a 2.56 n/a
    Boston Scientific Corp. BSX 7.37 11.26B 18.43 15.04 1.45 1.42

    Source: Thomson Financial

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