Boston Scientific Corporation
elective procedure deferrals amid the pandemic are weighing on the stock. Further, unfavorable currency movement has been a major dampener. The stock currently carries a Zacks Rank #4 (Sell).
Boston Scientific ended the third quarter of 2021 with total revenues missing the Zacks Consensus Estimate. While the company registered a year-over-year improvement in sales, revenues dropped sequentially on the resurgence of COVID-19 across the United States. Core CRM third-quarter growth lagged the market. Further, elective procedures within the Pelvic Health portfolio were impacted by the Delta variant during the third-quarter months.
Although the company reported margin expansion on a year-over-year basis, the decline in R&D expenses is concerning. Reduced revenue guidance for 2021 is a concern too.
Declining worldwide pacemaker sales over the recent past continued to weigh on Boston Scientific’s CRM results. However, pacemaker sales should gradually improve in with new product launches (including the launch of RESONATE platform) and easier comps.
Boston Scientific Corporation Price
On a positive note, Boston Scientific ended the third quarter with adjusted earnings surpassing the Zacks Consensus Estimate. Despite the temporary impact of the resurgence of COVID-19 on procedure volumes, the company reported year-over-year growth, banking on new product launches. It generated robust clinical evidence and executed broadly across the portfolio.
Barring CRM, organic revenues at each of its core business segments and geographies were up in the third quarter. Specifically, the company delivered solid growth across PI, EP and Endo, fueled by new and ongoing product launches like TheraSphere, POLARx and AXIOS.
The company also reported margin expansion on a year-over-year basis. New acquisitions like Preventice, Farapulse and Lumenis Surgical, which closed in March, August and September of 2021, respectively contributed to the inorganic growth of Boston Scientific in the reported quarter.
Over the past year, Boston Scientific has outperformed the
it belongs to. The stock has risen 17.4% against the industry’s 12.6% fall.
Stocks to Consider
A few better-ranked stocks in the broader medical space that investors can consider are
AMN Healthcare Services, Inc.
Apollo Endosurgery, Inc.
Laboratory Corporation of America Holdings
. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. AMN Healthcare surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 28.7% versus the 60.3% industry decline.
Apollo Endosurgery, carrying a Zacks Rank #1, has a long-term earnings growth rate of 7%. Apollo Endosurgery’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.
Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 27% versus the industry’s 6.9% fall.
Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. Laboratory Corporation currently sports a Zacks Rank #1.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
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