Boston Scientific’s (BSX) stock suffered a loss early Wednesday after the company reported weak sales numbers for the third quarter and revised down the full-year guidance. While the top-line missed estimates, earnings grew sharply and exceeded the forecast, aided by stable demand across all operating segments and geographical regions.
Adjusted earnings of the Marlborough, Massachusetts-based medical devices maker moved up to $0.35 per share in the third quarter from $0.31 per share in the year-ago period, exceeding expectations. Reported net income was $432 million or $0.31 per share, up from $283 million or $0.20 per share in the third quarter of 2017.
Net sales jumped 7.7% annually to $2.39 billion during the quarter but missed Wall Street estimates. On an organic basis, sales rose 8.7%. Sales at the MedSurg division grew 10.3% annually, while the Rhythm and Neuro segment registered a 7.4% gain. Cardiovascular sales were higher by 5.9% compared to last year.
Adjusted earnings moved up to $0.35 per share in the third quarter from $0.31 per share in the year-ago period
“Our strong results reflect our global team’s focused efforts to execute our category leadership strategy and advance the standard of care. Through internal research and tuck-in acquisitions, we continue to bring meaningful innovations to market, enabling our customers to deliver life-changing care to millions of patients around the world,” said CEO Mike Mahoney.
Looking ahead, the company expects full-year revenues to be in the range of $9.787 billion to $9.827 billion, slightly lower than the earlier estimate of $9.800-$9.880 billion. Meanwhile, the earnings forecast was revised up to $1.08-$1.10 per share from the earlier prediction of between $0.99 per share and $1.03 per share. The current forecast for full-year adjusted earnings is $1.37-$1.41 per share.
The sales outlook for the fourth quarter is between $2.525 billion and $2.565 billion. Unadjusted and adjusted earnings are expected to be in the range of $0.15-$0.17 per share and $0.30-$0.32 per share respectively.
The company’s stock, which has been on an upward trajectory for some time, gained 26% over the past twelve months. The stock closed the previous trading session lower and lost further in early trading Wednesday.