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 | ||
July–28-2011 | 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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