NEW YORK (TheStreet) -- Boston Scientific (BSX) - Get Report stock closed higher by 0.72% to $16.82 on Tuesday, ahead of the company's 2015 third quarter financial results, which are due out before the market open on Wednesday.
Analysts are expecting the company to post a year over year rise in both earnings per share and revenue for the most recent quarter.
Analysts surveyed by Thomson Reuters have forecast that Boston Scientific will report earnings of 23 cents per share on revenue of $1.86 billion.
Last year, the company reported earnings of 20 cents per share on revenue of $1.85 billion in the 2014 third quarter.
Based in Marlborough, MA, Boston Scientific develops, manufactures and markets medical devices.
Separately, TheStreet Ratings team rates BOSTON SCIENTIFIC CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate BOSTON SCIENTIFIC CORP (BSX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- This stock has managed to rise its share value by 33.27% over the past twelve months. Although BSX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 2450.0% when compared to the same quarter one year prior, rising from $4.00 million to $102.00 million.
- BOSTON SCIENTIFIC CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BOSTON SCIENTIFIC CORP reported poor results of -$0.10 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus -$0.10).
- Net operating cash flow has significantly decreased to $60.00 million or 78.94% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, BOSTON SCIENTIFIC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BSX