Morningstar | BSX Updated Forecasts and Estimates from 27 Mar 2019
Boston Scientific delivered strong fourth-quarter performance and ended the full year slightly exceeding our sales growth estimates, but this was offset by operating expenses that came in higher than we’d expected. We’re leaving our fair value estimate unchanged at this point. We were pleased to see Boston demonstrate broad-based strength as the firm wrapped up 2018 with 7.2% organic revenue growth and adjusted net income rising in the midteens. Although Boston currently enjoys a narrow economic moat, we plan to revisit our thinking on the sustainability of the firm’s competitive advantages for a possible upgrade to wide. The firm’s intangible assets--including its relationships with practitioners, intellectual property, and engineering expertise--have allowed the firm to regain its competitive edge under CEO Mike Mahoney’s leadership.Although the relatively short waxing and waning of product cycles is a key feature of the cardiac device industry, Boston has been able to keep its pipeline full of novel technologies that have supported revenue growth that has outpaced the market over the last three years. We think Boston’s Spectra WaveWriter spinal cord stimulation device for chronic pain is a good example of this. Against the backdrop of the recent surge of innovation in neuromodulation, WaveWriter is distinctive in that it combines two different therapies to address the range of pain patterns experienced by patients. In the fourth quarter, Boston saw 19% organic growth in its neuromodulation product line, while rival Abbott posted flat organic growth in the same period (albeit off a very strong fourth quarter in 2017). We anticipate further robust adoption of WaveWriter in 2019 thanks to its launch in Europe and promising preliminary clinical data on its efficacy. Additional clinical data is expected later this year.
Boston Scientific develops, manufactures and markets medical devices. The company's Medical Surgical segment consist of: Endoscopy, which develops and manufactures devices to diagnose and treat a range of gastrointestinal and pulmonary conditions; and Urology and Pelvic Health, which develops and manufactures devices to treat various urological and pelvic conditions. The company's Rhythm and Neuro segment includes: Cardiac Rhythm Management, which develops and manufactures implantable devices to treat cardiac abnormalities; and Electrophysiology, which develops and manufactures medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.