Boston Scientific Quarterly Profit Falls 25%
Boston Scientific (NYSE:BSX) said Thursday that its third-quarter profit slid on sluggish sales of cardiac rhythm management products, however the company lifted the lower-end of its fiscal view as it continues to gain traction in emerging markets.
The medical device maker posted net earnings of $142 million, or 9 cents a share, compared with $190 million, or 12 cents a share, in the same quarter last year.
Excluding special items, the company said it earned 15 cents a share, well ahead of average analyst estimates polled by Thomson Reuters of 8 cents.
Revenue for the three-month period was $1.87 billion, down from $1.92 billion a year ago, missing the Street’s view of $1.91 billion.
In a statement, the company’s newly appointed chief executive, Hank Kucheman said Boston Scientific's earnings remain strong despite “very challenging global economic and end-market conditions that adversely impacted revenue."
The Natick, Mass.-based medical manufacturer reported double-digit sales growth in its three largest emerging markets of Brazil, India and China, as well as 6% sales growth in both its endoscopy and neuromodulation segments on new products.
Those gains were partially offset by a 9% drop in sales in its cardiac rhythm management division.
For the fourth quarter, Boston Scientific predicts sales in the range of $1.85 billion to $1.95 billion on earnings between 13 cents and 16 cents a share. Wall Street is looking for a profit of 10 cents on revenue of $1.97 billion.
The company lifted the lower end of its fiscal earnings forecast by three cents to the range of 64 cents to 70 cents a share on sales between $7.6 billion and $7.72 billion. Analysts are predicting a 2011 profit of 45 cents on sales of $7.77 billion.