Shares of Boston Scientific (NYSE:BSX) stock are up nearly 5% this morning after the medical device company announced 4th-quarter and 2012 results that beat Wall Street’s expectations and revealed another round of layoffs.
Marlborough, Mass.-based Boston Scientific posted 4th-quarter profits of $60 million, or 4¢ per share, on sales of $1.82 billion for the 3 months ended Dec. 31, 2012, representing a bottom-line slide of 43.9% and a sales decrease of 1.5% compared with the same period in 2011.
For full-year 2012, the company reported losses of $4.07 billion, or $2.89 per share, on sales of $7.25 billion. That’s a top-line slide of 4.9%.
Adjusted to exclude 1-time items, Q4 earnings per share reached 18¢, well ahead of The Street analysts’ prediction of 11¢ apiece. Full-year adjusted EPS were 66¢, again topping the The Street’s 41¢ forecast.
The news sent BSX shares up 4.8% to $7.19 apiece as of about 10:35 this morning.
"We are pleased but not satisfied with our improved performance in the quarter," president & CEO Mike Mahone said in prepared remarks. "We continued to enhance our growth portfolio, expand in the emerging markets, and implement operational changes to improve our execution and sharpen our customer focus. I am confident we are taking the critical steps that are needed to return our company to long-term growth."
Boston Scientific also said it’s expanding the streamlining effort it started in 2011, adding 1,000 layoffs to the 1,400 job cuts it’s already put in place. Aiming to pare pre-tax operating expenses by $100 million to $115 million annually by the end of the year, plus the $340 million to $375 million in savings it expects to reap from the 2011 initiative, Boston Scientific said it plans to let another 900 to 1,000 employees go.
Looking ahead to 2013, the company said it expects 1st-quarter sales of $1.74 billion to $1.82 billion and EPS of 4¢-7¢. Adjusted EPS for the quarter are expected to be between 14¢ and 17¢. Full-year sales are forecast at $7.05 billion to $7.35 billion, with EPS of 29¢-37¢ and adjusted EPS of of 64¢-70¢.
