Boston Scientific Corp.'s (BSX) second-quarter earnings surged
61%, as stronger U.S. sales more than offset a decline abroad, and
the company reported fewer charges.
Following the results, which included better-than-expected
revenue growth, shares were up 7.4%, to $11.06, in after-hours
trading. The shares are up by over a third so far this year.
The medical-device maker also narrowed its full-year projection,
lowering the high-end of its earnings and revenue target.
Boston Scientific has reported earnings in line with its
guidance for several quarters, as it has stabilized its
drug-eluting stent business and improved its cardiac rhythm
management business. The company has maintained its leading market
share in the drug-eluting stent market, cut costs and cut its debt
load.
As a result, two ratings agencies have placed positive outlooks
on the company's credit ratings in recent months, suggesting they
may return to investment grade.
The company reported earnings of $158 million, or 10 cents a
share, up from $98 million, or 7 cents a share, a year earlier.
The latest results included $158 million, or 10 cents a share,
in asset impairments, research and restructuring charges, among
other items. The prior year's results included $206 million, or
about 13 cents a share, in acquisition, divestiture, amortization
and restructuring-related charges.
Excluding those items, earnings were flat, at 20 cents a
share.
Net sales grew 2.5%, to $2.07 billion. Excluding the impact of
currencies and sales from divested businesses, sales were up
7%.
In April, the company projected per-share earnings of 16 cents
to 21 cents on revenue of $1.96 billion to $2.05 billion.
Gross margin fell to 69.6% from 70.2%.
Worldwide sales of the company's stents, tiny metal scaffolds
used to prop open heart arteries, rose 10%, with revenue up 27% in
the U.S. and down 3.8% abroad.
Worldwide sales of heart-rhythm management devices, including
implantable cardioverter defibrillators, or ICDs, improved 5.4%, as
U.S. sales increased 11% and sales abroad declined 4.7%.
Looking ahead, Boston Scientific projected third-quarter
per-share earnings, excluding items, of 17 cents to 21 cents on
revenue of $2 billion to $2.1 billion.
For the full year, the company narrowed its forecast, seeing
earnings between 82 cents and 86 cents a share, excluding items, on
revenue of $8.1 billion to $8.4 billion, from its April view of 80
cents to 90 cents on revenue of $8 billion to $8.5 billion.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com