On Oct 13, we issued an updated research report on Boston Scientific Corporation BSX. The company’s recent acquisitions added various products (though many are under development) with immense potential to its portfolio. The stock currently carries a Zacks Rank #2 (Buy).
Although a higher mix of non-deferrable procedures within MedSurg business already induced a significant decline in trends through the last few months within both Urology and Pelvic Health, and Endoscopy, Boston Scientific expects these to recover more rapidly than the rest of its business segments. More precisely, within urology/pelvic health, sales from the company’s stone franchise and SpaceOAR products are showing better resilience. In the last reported quarter, there was a faster-than-expected rebound at prosthetic urology and pelvic floor franchise.
Within Endoscopy, the company noted that recovery has already started since June. Meanwhile, per data, second-quarter sales declined 26% year over year. However, in June, the metric dropped only 10% from the year-ago period. Further, this improvement trend continued into July as endoscopy business has a favorable mix of both relatively high acuity and outpatient side of service.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Following the controlled launch in Europe, Boston Scientific recently began a soft commercial launch of LOTUS Edge Aortic Valve System in the United States. Per the latest update, the LOTUS Edge controlled launches are going extremely well. Through the second quarter, LOTUS EDGE continued to see a strong utilization within the existing accounts.
On the flip side, Boston Scientific has underperformed its industry year to date. The stock has lost 7.2% agaisnt the 1.6% rise of the industry.
The ongoing economic doldrums in the wake of the global coronavirus outbreak are also slashing the stock price largely. The global supply-chain disruption due to this pandemic is causing a significant drop in the company's revenues as well. In the second quarter, Boston Scientific delivered disappointing year-over-year earnings and revenue performances.
Sales at each of its core business segments and geographies were significantly down in the reported quarter, affected by lower demand for non-COVID-19 healthcare products and elective procedures. Despite the company’s reduction in operational expenses, both the margins contracted massively on huge revenue loss.
The uncertainties regarding the duration and impact of the coronavirus pandemic on the company’s overall business had earlier compelled Boston Scientific to suspend its previously-issued 2020 financial guidance. This time too, the company could not provide any update on its full-year outlook.
Other Key Picks
A few other top-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc. TMO and Abbott Laboratories ABT.
QIAGEN’s long-term earnings growth rate is estimated at 17.2%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15.5%. It currently carries a Zacks Rank of 2.
Abbott’s long-term earnings growth rate is estimated at 11%. The company is presently a Zacks #2 Ranked player.
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