WASHINGTON (dpa-AFX) - Medical device maker Boston Scientific Corp. (BSX) on Wednesday reported a turnaround to profit in the third quarter reflecting higher sales in the cardiovascular and rhythm management segments.
Looking ahead, the company provided financial outlook for the fourth quarter in line with Street view. For fiscal 2014, the company raised the lower end of its adjusted earnings forecast and tightened its revenue guidance range.
Mike Mahoney, president and chief executive officer of Boston Scientific said, 'We are particularly pleased with our global performance in Cardiovascular and Rhythm Management. Our momentum continues, and we are excited about the opportunities we have ahead to strengthen our global execution and bring more unique innovation to patients.'
The Natick, Massachusetts-based company's net income for the third quarter was $43 million or $0.03 per share, compared to net loss of $5 million or breakeven per share in the prior-year quarter.
Results for the latest quarter include net charges of $230 million after-tax or $0.17 per share, while the prior-year quarter's results included net charges of $235 million after-tax or $0.17 per share.
Excluding items, adjusted net income for the latest quarter was $273 million or $0.20 per share, compared to $230 million or $0.17 per share in the year-ago quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Worldwide net sales for the quarter increased 6 percent to $1.85 billion from $1.74 billion in the same quarter last year, and beat analysts' consensus revenue estimate of $1.82 billion.
The company noted that prior-year sales have been restated to reflect the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014.
On a constant currency basis, international sales increased 9 percent, with 11 percent growth in Europe and 19 percent growth in Emerging Markets. Emerging markets net sales represented 10 percent of total worldwide sales.
Cardiovascular sales grew 8 percent from the year-ago period to $723 million, with interventional cardiology sales increasing 8 percent and peripheral interventions also rising 8 percent.
Rhythm management sales grew 7 percent to $534 million, reflecting a 3 percent increase in cardiac rhythm management sales and a 57 percent surge in electrophysiology sales.
MedSurg sales grew 4 percent to $588 million, with endoscopy sales increasing 6 percent and urology/women's health sales growing 5 percent. However, neuromodulation sales were flat with last year.
Looking ahead to the fourth quarter, Boston Scientific forecasts adjusted earnings in a range of $0.20 to $0.22 per share on projected revenues between $1.875 billion and $1.925 billion.
Analysts expect the company to report earnings of $0.21 per share for the quarter on revenues of $1.92 billion.
For fiscal 2014, Boston Scientific raised the lower end of its adjusted earnings guidance to a range of $0.81 to $0.83 per share from the prior range of $0.79 to $0.83 per share.
The company also narrowed its annual revenue guidance to between $7.370 billion and $7.420 billion from the prior forecast range of $7.325 billion and $7.425 billion.
Street is currently looking for full-year earnings of $0.82 per share on revenues of $7.39 billion.
BSX closed Tuesday's trading at $12.03. In Wednesday's pre-market activity, the stock is up $0.52 or 4.32 percent to $12.55.
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