Boston Scientific Corporation (NYSE: BSX) reported a 72% dip in earnings for the second quarter due to higher costs and expenses as well as lower income tax benefit. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. Also, the company issued guidance for the third quarter.
Net income plunged by 72% to $154 million or $0.11 per share. The results were hurt by the acquisition-related charges in the quarter primarily associated with the proposed acquisition of BTC Plc. Adjusted earnings decreased by 5% to $0.39 per share, which remained in the top-end of its guidance range of $0.37 to $0.39 per share.
Net sales grew by 5.6% to $2.63 billion. The company achieved revenue growth in all segments with MedSurg increasing by 9% and Cardiovascular rising by 6.3%.
Looking ahead into the third quarter of 2019, the company expects earnings in the range of $0.23 to $0.25 per share and adjusted earnings in the range of $0.37 to $0.39 per share. Revenue growth is predicted to be in the range of 8% to 10% on a reported basis and about 7.5% to 9% on an organic basis.
For fiscal 2019, the company still expects revenue growth in the range of 7% to 8% on a reported basis. The company lowered its earnings guidance to the range of $0.94 to $0.98 per share from the previous $1.09 to $1.13 per share range. Adjusted earnings are still anticipated to be in the range of $1.54 to $1.58 per share.
During June-end, Boston Scientific presented plans for its product pipeline and strategic investments to deliver strong financial performance across the company’s MedSurg, Rhythm and Neuro, and Cardiovascular segments. The company highlighted plans of launching about 75 new products by 2022 and provided goals for moderate and high growth markets to reach an estimated 80% of sales by 2022.
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Last week, Boston Scientific’s peer Intuitive Surgical (NASDAQ: ISRG) posted better-than-expected second quarter 2019 results. The Sunnyvale-based firm reported Q2 earnings of $2.67 per share on an adjusted basis, up 24% year-over-year. Revenue grew 21% annually to $1.09 billion.
Shares of Boston Scientific ended Tuesday’s regular session up 0.89% at $42.88 on the NYSE. Following the earnings release, the stock rose over 1% in the premarket session.