Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Boston Scientific tops expectations as demand picks up
Boston Scientific $43.81
Gain to date: 31.4%
Original entry point: Buy at $33.33, 26 November 2020
As hospitals around the world start to make elective procedures the priority after months of Covid-19 issues, demand for medical equipment firm Boston Scientific’s kit and services is starting to pick-up. The $62 billion company reported second-quarter profit and revenue that beat expectations and raised its full-year outlook.
The medical technology company swung to net income of $172 million, or $0.12 a share, from a loss of $153 million ($0.11 a share) last year. Strip out one-offs, adjusted earnings per share were $0.40 cents, topping the $0.37 consensus. Revenue rose 54% to $3.08 billion, above $2.94 billion consensus, while its core cardiovascular revenue jumped more than 50%.
Boston Scientific’s stock has rallied more than 24% in 2021 so far and investors have reason to keep backing the shares given that the company raised its guidance ranges for adjusted earnings per share (from $1.53 to $1.60, now $1.58 to $1.62) and for revenue growth, which is now expected to jump by more than 20%.
SHARES SAYS: Boston is reclaiming its markets, growing into new ones (prostate health, therapeutic oncology, for example) and widening its market base into China, India, and Malaysia. Still a buy.