Boston Scientific (BSX) reported second-quarter adjusted EPS of $0.12 on revenues which increased 2.4% to $1.975 billion. Both numbers beat the Zacks Consensus Estimates. Following the launch of its Ion stent in the US, Boston Scientific increased its market share in the US to 50%. Moreover, this launch also sets the stage for the launch of Promus Element in the US, much ahead of the original timeline of June 30, 2012.
Meanwhile, the company announced a restructuring program to increase productivity. Boston Scientific also announced a $1 billion share repurchase program and raised its earnings guidance. The company's focus on emerging markets is also likely to boost revenues further.
However, the competitive landscape continues to be tough in addition to slower procedural volume and challenges in the CRM market. Given these factors, we upgrade the stock to Outperform.
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