Boston Scientific Reports Loss, Hurt by Charges
October 28 2015 - 9:20AM
Dow Jones News
Boston Scientific Corp. swung to a loss in the third quarter,
hit by litigation-related charges, though revenue and adjusted
profit came in higher than expected.
Boston Scientific is working through major cost-cutting plans,
while it moves to diversify its product portfolio to make it less
dependent on sales of its cardiac devices. Stents and implantable
heart-rhythm devices account for more than half of the company's
sales, and both face growth challenges and high levels of
competition that can pressure prices. Cardiovascular revenue was
flat in the latest quarter, while interventional cardiology revenue
declined 2%.
Overall, the Marlborough, Mass., medical-device company on
Wednesday reported a loss of $198 million, or 15 cents a share,
compared with a profit of $43 million, or 3 cents a share, a year
earlier. Excluding certain items, per-share earnings were 24 cents
in the latest quarter. Revenue grew 2.3% to $1.89 billion.
Boston Scientific had forecast earnings of 21 cents to 23 cents
a share on revenue of $1.79 billion to $1.84 billion.
The latest quarter included litigation-related charges of $457
million, compared with $139 million a year earlier.
Adjusted for currency fluctuations and divestitures, overall
revenue grew 9%, revenue at its cardiovascular business rose 9%,
and interventional cardiology revenue rose 7%.
Boston Scientific also gave new forecasts, calling for full-year
revenue in a range of $7.47 billion to $7.51 billion, compared with
prior guidance of $7.275 billion to $7.375 billion. Boston
Scientific expects adjusted earnings in the range of 90 cents to 92
cents a share, compared with its previous forecast of 88 cents to
92 cents a share.
For the fourth quarter, the company estimates sales between
$1.97 billion and $2.01 billion and adjusted earnings between 23
cents to 25 cents a share. Analysts expect $2 billion of revenue
and 26 cents of earnings.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com and Anne
Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 28, 2015 09:05 ET (13:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Boston Scientific (NYSE:BSX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Boston Scientific (NYSE:BSX)
Historical Stock Chart
From Apr 2023 to Apr 2024