SYK - Boston Scientific (BSX) Faces Rising Costs Competition | Benzinga
Boston Scientific Corporation (NYSE: BSX) has been struggling due to unfavorable currency movement and macroeconomic woes. Strong competitors in the large medical device market also pose a tough challenge for Boston Scientific. The stock carries a Zacks Rank #4 (Sell) currently.
The industry-wide trend of challenging macroeconomic conditions in the form of inflation, disruptions in economic activity, global supply chains and labor markets, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific's profitability. Further, international conflicts, including the Russia-Ukraine war and tensions between China and Taiwan, have increased cybersecurity risks on a global basis. With sustained macroeconomic pressure, the company may struggle to keep its operating expenses in check.
In the fourth quarter of 2023, the company reported a 13.4% rise in the cost of products sold and an 18.6% rise in selling, general and administrative expenses. Adjusted operating margin contracted 22 basis points (bps) to 22.1% in the reported quarter.
With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other ...