Another quarter and another disappointment for Boston Scientific (BSX). With a new caretaker CEO at the reins, but only for a year, it an open question as to whether investors can reasonably expect any near-term progress. While there are some bright spots deep in the pipeline, it is going to take many years for them to bear fruit, and BSX will find itself having to battle for share amidst established competition. All in all, this is an investment that requires a great deal of faith - and hope and faith are seldom great partners to have in an investment.
Another Disappointing Quarter
Boston Scientific reported that sales declined 6% on a constant currency basis, with core revenue (that is, excluding divested lines) down 3%. The company's interventional cardiology segment (which includes drug-coated stents) saw revenue fall 4%, while the CRM business (which includes pacemakers and ICDs) fell 12%. Neuromodulation (up 6%) and peripheral intervention (up 4%) weren't bad, but endoscopy (up 6%) is about as close to good news as there was for the quarter. But that business contributes only about 16% of total revenue.
Read the full article here:
Boston Scientific Is Not A Safe Turnaround Bet
No comments:
Post a Comment