Boston Scientific Corporation generated sales of $1.735 billion for the third quarter ended September 30, 2012. Sales were at the lower end of guidance, showing a 5% decline on a constant currency basis. The bottom line held up though with adjusted earnings per share of $0.16 at the higher end of the company’s adjusted EPS guidance range of $0.14 to $0.17.
Boston’s revenue decline was due to significant slumps in its Cardiac Rhythm Management and moreso its interventional cardiology divisions with post currency slippages of 6% and 17% respectively.
There are significant reasons to be cheerful however as expectations are high for the newly acquired S-ICD® system recently. S-ICD came with the acquisition of Cameron Health and represents a paradigm shift in its genre, being the first such device not to require intravascular insertion of leads.
Also, as reported on medlatest recently the company has gained CE Mark approval of the Vercise™ Deep Brain Stimulation (DBS) System for the treatment of Parkinson’s disease, entering a new therapeutic category.
Delivered adjusted EPS of $0.16, at the higher end of the company’s adjusted EPS guidance range of $0.14 to $0.17.
Guidance for Fourth Quarter and Full Year 2012
The company estimates sales for the fourth quarter of 2012 in a range of $1.740 billion to $1.815 billion. The company estimates earnings on a GAAP basis in a range of $0.06 to $0.09 per share. Adjusted earnings, excluding acquisition- and restructuring-related charges and amortization expense are estimated in a range of $0.15 to $0.18 per share.
The company estimates sales for the full year 2012 in a range of $7.168 billion to $7.243 billion. The company estimates losses on a GAAP basis in a range of $2.89 to $2.86 per share. Adjusted earnings, excluding goodwill and other intangible asset impairment charges, acquisition- and divestiture-related net credits, restructuring- and litigation-related charges, discrete tax items, and amortization expense are estimated in a range of $0.63 to $0.66 per share.
“Despite increased competition and on-going market challenges in our cardiology businesses, we continue to deliver on our adjusted earnings and free cash flow and saw encouraging year over year performance in nearly all of our other businesses,” said Hank Kucheman, current Chief Executive Officer, about to be handing the title to ex J&J exec Mike Mahoney . “We remain focused on executing our strategy to drive this organization back to revenue growth, as evidenced by recent regulatory approvals and acquisitions, and continued progress on our cost optimization initiatives.”