Medical device maker Boston Scientific Corp. (BSX) reported Thursday a loss for the first quarter compared to a profit last year, hurt by hefty goodwill impairment charges and lower sales. Striping down the charges, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.
The company also provided earnings and revenue guidance for the second quarter, and raised outlook for the full-year 2013.
"We continue to be encouraged but not satisfied with our operating performance. The company delivered adjusted results that are consistent with first-quarter and full-year guidance. We continue to make strong progress on our strategy to return to consistent sales and earnings-per-share growth," President and CEO Mike Mahoney said.
The Natick, Massachusetts-based company reported a net loss of $354 million or $0.26 per share for the first quarter, compared to net income of $113 million or $0.08 per share in the prior-year quarter.
Results for the latest quarter include a goodwill impairment charge, acquisition- and divestiture-related net credits, restructuring- and litigation-related charges, and amortization expense, of $0.42 per share, while the year-ago quarter included $0.07 per share of the same charges.
Excluding items, adjusted net income for the quarter was $224 million or $0.16 per share, compared to $220 million or $0.15 per share in the year-ago quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Worldwide net sales for the quarter decreased 6 percent to $1.76 billion from $1.87 billion in the same quarter last year, and missed twenty Wall Street analysts' consensus estimate of $1.79 billion. On a constant currency basis, sales declined only 4 percent, excluding divested businesses.
The company noted that combined revenues in the countries of Brazil, Russia, India and China or BRIC, increased 29 percent or 35 percent on a constant currency basis, from last year.
The company said it reorganized its business from geographic regions to fully operationalized global business units, effective January 1, 2013. Following the reorganization, the company has three new global reportable segments consisting of Cardiovascular, Rhythm Management and MedSurg.
Cardiovascular sales grew 12 percent, with interventional cardiology sales decreasing 16 percent and peripheral interventions sales remaining flat. Rhythm management sales declined 5 percent, with cardiac rhythm management sales declining 5 percent and electrophysiology sales dropping 6% percent.
MedSurg sales grew 2 percent, with endoscopy sales increasing 3 percent and urology/women's health sales decreasing 2 percent, while neuromodulation sales increased 6 percent.
Looking ahead to the second quarter, the company expects adjusted earnings in a range of $0.14 to $0.17 per share, on projected revenues between $1.74 billion and $1.80 billion. Analysts expect the company to report earnings of $0.10 per share for the quarter, on revenues of $1.81 billion.
For fiscal 2013, the company now expects adjusted earnings in the range of $0.65 to $0.70 per share, on anticipated revenues between $6.95 billion and $7.15 billion. The company previously estimated adjusted earnings of $0.64 to $0.70 per share on revenues between $7.05 billion and $7.35 billion.
Street is currently looking for full-year 2013 earnings of $0.41, on annual revenues of $7.18 billion.
BSX closed Wednesday's regular trading session at $7.36, up $0.01 on a volume of 15.12 million shares. In the past 52-week period, the stock has been trading in a range of $4.79 to $7.95.
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