BSX - Embedded Expectations Analysis - 2018 09 17
Boston Scientific Corporation (BSX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 23.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about sustaining growth, competition for EPs, and investmentsSpecifically, management may lack confidence in the sustainability of growth of their WaveWriter SCS, particularly for low back pain patients, and of deep brain stimulation capabilities, especially in European markets. Moreover, they may be concerned about other companies offering EPs, and may lack confidence their investments in the space will drive growth. Additionally, they may be concerned about the diversification of their growth profile, and may lack confidence in the sustainability of strong sales and growth in emerging markets. Finally, they may be concerned about the impact of tariffs
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.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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