Why Boston Scientific Corporation Rose 15.7% in April

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11/05/2016

A stellar earnings report pumped up shares of the cardiac device specialist.

Shares of Boston Scientific Corporation,  an interventional medical device specialist, popped 15.5% in April, according to data from S&P Global Market Intelligence. A strong first-quarter earnings and improved outlook provided the boost.

The company is off to a roaring start this year. Total first-quarter revenue was 13% higher, and when excluding the impact of a recent acquisition, organic revenue grew 8% compared with the same period last year.

Four of the company's seven business segments grew revenue by double digits, leading to a 24% gain in operating profit.

A more optimistic outlook for the rest of the year is what excited the market the most. The company boosted annual revenue growth guidance from between 4% and 7% over 2015 to between 6% and 8%, excluding the recent addition of the male urology portfolio it just bought from Endo International for about $1.6 billion.

Management also expects its adjusted operating margin to widen an extra 0.5% to 24.5%, which sounds awfully good for a company with operations that have ended most of the past 10 years in the red on a GAAP basis.

 


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