Thursday, October 21, 2010

Boston Scientific Has A Long Road Back

Turnarounds are hard enough in the best of times, and when a company's core markets are in shaky condition it becomes all the more difficult. Even if med-tech player Boston Scientific (NYSE:BSX) is really into improving its operations, there are some significant headwinds pushing against it. Still, with a patient long-term approach to improving operations it may be possible for this company to unlock some value for its long-suffering shareholder base. 

The Quarter That Was
Boston Scientific delivered a mixed third quarter announcement - the company did well vis-a-vis analyst estimates (especially on the bottom line), but the fundamental performance was not all that strong. Consolidated revenue fell 5%, as the company balanced double-digit declines in stent revenue and high single-digit declines in cardiac rhythm management with modest growth in endosurgery and neuromodulation.

Turning to profitability, the company did manage to improve adjusted gross margin by more than a full point, and adjusted earnings grew a little bit over last year's level. 



Click below to read the full article:
http://stocks.investopedia.com/stock-analysis/2010/Boston-Scientific-Has-A-Long-Road-Back-BSX-MDT-STJ-ABT-VOLC-ZMH-SYK1021.aspx

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