Boston Scientific (NYSE:BSX) beat Wall Street’s earnings expectations by a penny with its 2nd-quarter results, posting a massive bottom-line gain compared with Q2 2014, when it absorbed a $167 million hit from legal costs.
Marlborough, Mass.-based Boston reported profits of $102 million, or 8¢ per share, on sales of $1.84 billion for the 3 months ended June 30, representing a 2,450% profit gain even as sales dipped -1.6%.
Adjusted to exclude 1-time items, earnings per share were 22¢, ahead of the 21¢ forecast on The Street, where analysts were looking for sales of $1.83 billion.
“Our strong performance in the 2nd quarter reflects the consistent execution of our global teams,” president & CEO Mike Mahoney said in prepared remarks. “We are particularly pleased with the improved growth in MedSurg and continued strength in Cardiovascular. We look forward to continued momentum with several ongoing product launches and the planned closing of the American Medical Systems (AMS) urology portfolio acquisition in the 3rd quarter of 2015.”
Boston Scientific lowered its earnings outlook for the rest of the year, to 28¢ – 34¢, compared with prior guidance of 32¢ to 38¢, with adjusted EPS of 88¢ to 90¢. The company also raised the lower end of its sales outlook for 2015, to $7.275 to $7.38 billion, compared with prior guidance of $7.23 billion to $7.38 billion.
Third-quarter EPS are pegged at 10¢ to 13¢, with adjusted EPS as 21¢ to 23¢, on sales of $1.79 billion to $1.84 billion. The company estimates earnings on a GAAP basis in a range of $0.10 to $0.13 per share. Adjusted earnings, excluding acquisition- and divestiture- and restructuring-related net charges and amortization expense, are estimated in a range of $0.21 to $0.23 per share.
Sales for Boston Scientific’s cardiovascular business were up 0.5% to $743 million during the quarter, or up 10% on a constant-currency basis. Cardiac rhythm management revenues were off -6.5% to $517 million and flat on a constant-currency basis; medical-surgical sales were $583 million, up 0.5% or 7% in constant-currency terms.
