The Marlborough, Mass.-based company posted profits of $11 million, or 1¢ per share, on sales of $2.54 billion for the three months ended March 31, 2020, for a 97.4% bottom-line slide on sales growth of 2%.
Adjusted to exclude one-time items, earnings per share were 28¢, 3¢ behind Wall Street, where analysts were looking for sales of $2.52 billion.
“During this global pandemic, we are grounded in the urgency of providing important medical products and therapies to those who need them — in particular, many patients with acute needs,” Boston Scientific chairman & CEO Mike Mahoney said in a news release. “We continue to balance short-term adjustments to our plans while strengthening our long-term strategy to serve our customers and deliver high performance. I’m confident in our ability to bring meaningful, innovative products to market, and grateful for our team’s winning spirit as we navigate the impact of these challenges.”
Boston Scientific previously reported projected organic growth between 6.5% and 8.5% in 2020, with earnings set for a range between $1.74 and $1.79 per share.
However, those numbers were withdrawn last month after the impact that global authorities’ advisement of deferring elective medical procedures has had on the company’s business, along with other disruptions caused by the COVID-19 pandemic.
Earlier this month, the company significantly reduced the salaries of its CEO, board of directors and executive committee members and, where appropriate, temporarily reduced workweek schedules for employees amid the pandemic.
According to a company statement, the temporary cuts include a four-day workweek for much of the company’s U.S. workforce over the next 90 days, which represents a 5% salary decrease for the year.
In an effort to aid in the fight against coronavirus, Boston Scientific is producing the University of Minnesota’s Coventor alternative ventilator, along with a reusable personal respirator and face shields for frontline healthcare workers, according to the release.
BSX shares were up 3.5% at $37.19 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.5%.