Boston Scientific (NYSE: BSX), an expert in medical devices and a colleague of Johnson & Johnson (NYSE: JNJ), reported earnings for the second quarter on Monday after the closing bell. Wall Street liked the results. Shares of the company were bid higher by 5.8% in the after-hours session.
Net sales increased 7%. On an adjusted basis, Boston Scientific made 20 cents per share. According to Earnings.com, the business was supposed to bring in only 13 cents per share. Thus, management did a superb job of beating the analysts at their precious game. Unfortunately, Boston Scientific made the same amount of adjusted profit in the year-ago period, so there wasn't any growth on the bottom line.
It's evident from the release that management was proud of some of BSX's achievements during the quarter. Global sales of the company's drug-eluting stent systems increased by a nice double-digit amount, as did global sales relating to the neuromodulation business.
According to Bloomberg, Boston Scientific sees greener pastures ahead. The company believes it will earn, on an adjusted basis, somewhere between 17 cents per share and 21 cents per share in Q3. Such guidance sits above current estimates. Wall Street was looking for maybe 15 cents per share.
If you're a shareholder of the company, then you probably enjoyed these results and the after-hours action. I don't own shares of Boston Scientific, but I am intrigued by the guidance and the performance of the stock in 2009. Shares have done well since the 52-week low was hit earlier in the year.
I don't think I'd want to buy right now. Not only would I want to get in at a better price, but I'd want to maybe see a little more strength in this situation, maybe see the stock reach for its 52-week high. That way I'd be a little more certain that shares can stay above the recent resistance level. It will be interesting to look at Boston Scientific during the regular trading session on Tuesday. Put this one on a watch list.
Disclosure: I don't own any company mentioned; positions can change without notice.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
