Earnings of medical device maker Boston Scientific Corporation (NYSE: BSX) increased and topped expectations in the third quarter, aided by a 13% growth in sales. The top-line also exceeded expectations. The company issued guidance for the fourth quarter and raised full-year earnings outlook. The stock moved up 4% during Wednesday’s premarket trading, following the announcement.
Adjusted earnings rose to $0.39 per share from $0.35 per share last year, beating the Street view. Net income was $126 million or $0.09 per share, compared to $432 million or $0.31 per share in the third quarter of 2018.
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“Our third quarter results reflect accelerated growth fueled by several key product launches, excellent regional performance and the broad strength of our core portfolio, and we continue to invest in building a robust pipeline,” said Mike Mahoney, CEO of Boston Scientific.
Net sales grew by 13.1% annually to $2.7 billion. Analysts were looking for a slower growth. The company achieved revenue growth in all segments with MedSurg increasing by 13.2% and Cardiovascular rising 11.3%. On a organic basis, total sales were up 9.3%.
Encouraged by the positive results, the management currently forecasts 13-15% revenue growth for the fourth quarter, when earnings are expected to be in the range of $0.22 per share to $0.25 per share. The estimate for adjusted earnings is $0.42- $0.45 per share.
For the whole of 2019, the management predicts 9-9.5% revenue growth. It is looking for full-year earnings in the range of $0.72 per share to $0.75 per share. Adjusted profit is expected to be between $1.55 per share and $1.58 per share, the midpoint of which is slightly above the previous estimate.
Boston Scientific shares gained 11% since the beginning of the year and 7% in the past twelve months. Following the earnings announcement, the stock gained early Wednesday, after closing the previous session lower.