Needham Calls Boston Scientific's Results Just 'Decent'

In a report published Wednesday, Needham analysts maintained their Hold rating on

The company has posted its 1Q15 results with revenues slight below the consensus and in-line EPS. The analysts believe that the revenue miss might have been driven by Fx headwinds. "While hedging helped to offset currency, we note that BSX's tax rate and R&D expense were both lower than expected," the analysts said. Despite the robust 1Q results, Needham expects the company's growth to slow down going forward, due to tougher comps. Boston Scientific has lowered its 2015 revenue guidance, while maintaining its EPS projection for the year. The analysts have accordingly revised their revenue and EPS estimates for the company for 2015, down. Boston Scientific posted stable growth for its Cardiovascular products, as compared to 4Q14, while gaining share of the DES market, driven by its SYNERGY and PREMIER stents. CRM sales also grew, although there was a decline in growth in Rhythm Management. On the whole, margins came in higher than expected, with 140 bps growth in gross margins, year on year.