Boston Scientific Narrows Loss as Sales Rise
05 February 2016 - 12:30AM
Dow Jones News
Medical-device maker Boston Scientific Corp. said its loss
narrowed in the fourth quarter as new product launches and a recent
acquisition pushed sales higher.
For the Marlborough, Mass.-based company, stents and implantable
heart-rhythm devices account for nearly half of the top line. Those
product lines have been under increasing competitive pressure, and
Boston Scientific has moved to diversify its product portfolio.
Watchman, Boston Scientific's surgical device for preventing
strokes, won U.S. regulatory approval last year, and during the
quarter the company launched a new thrombectomy catheter to treat
deep vein thrombosis.
Through its $1.6 billion acquisition last year of American
Medical Systems' men's health and prostate businesses, Boston
Scientific has also beefed up its MedSurg segment. Urology sales
surged 77% from a year earlier to $256 million, thanks to the
acquisition. That increase buoyed the overall MedSurg segment,
which includes endoscopy and women's health devices.
Chief Executive Mike Mahoney said products and programs launched
last year organically and through deals will support 2016 results.
The company issued guidance Thursday that falls in line with
analysts' projections.
In all for the fourth quarter, the company reported a loss of
$142 million, or 11 cents a share, narrower than a year-earlier
loss of $299 million, or 23 cents a share. Excluding acquisition
and divestiture charges, among others, per-share profit rose to 26
cents from 22 cents.
Revenue increased 4.8% to $1.98 billion. Analysts projected 25
cents in adjusted earnings per share and $1.99 billion in sales,
according to Thomson Reuters.
For the current year, Boston Scientific expects to report
adjusted earnings of $1.03 to $1.07 a share, bracketing the $1.05
analysts have predicted. Sales, the company said, will grow 6% to
8% to $7.9 billion to $8.10 billion. Analysts have been looking for
$8.05 in full-year revenue.
Shares in the company, down 5% over the past three months
through Wednesday's close, were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
February 04, 2016 08:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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