Boston Scientific (NYSE:BSX) swung to second-quarter black today, beating the consensus estimates on Wall Street for both sales and earnings and raising its outlook for the rest of the year.
The Marlborough, Mass.-based medical device giant posted profits of $146 million, or 11¢ per share, on sales of $2.26 billion for the three months ended June 30. That compares with Q2 2016 losses of -$207 million, or -15¢ per share, and amounts to a 6.2% top-line gain.
Adjusted to exclude 1-time items, earnings per share were 32¢, a penny ahead of the consensus on the Street, where analysts were looking for sales of $2.21 billion.
“Our strong financial performance in the first half of 2017 reflects our innovative portfolio of products and solutions and execution of our category leadership strategy,” chairman & CEO Mike Mahoney said in prepared remarks. “Our team continues to drive results while also investing in multiple high-growth markets where we expect our portfolio will have a meaningful impact on customers and their patients.”
Boston Scientific said it now expects to report adjusted 2017 EPS of $1.23 to $1.27, up from prior guidance of $1.22 to $1.26. Sales this year are now pegged at $8.89 billion to $8.99 billion, up from $8.80 billion to $8.90 billion previously.
Third-quarter adjusted EPS are pegged at 29¢ to 31¢ on sales of $2.18 billion to $2.21 billion, the company said.
BSX shares, which closed down -0.6% at $27.42 apiece, gained 3.6% to hit $28.40 in after-hours trading yesterday.
Medsurg surges, litigation expenses plunge
Sales in the medsurg unit, which includes devices for neuromodulation and pelvic procedures, rose about 11% to $834 million. Cardiovascular sales rose 4.7% to $876 million.
Operating expenses declined in the quarter, as litigation costs fell about 67%.
Material from Reuters was used in this report.