Boston Scientific 4Q income climbs as costs fallAP , Associated Press
Feb. 4, 2014 11:27 AM ET
NEW YORK (AP) — Boston Scientific's net income nearly doubled in the fourth quarter as its costs decreased and sales improved for heart devices, nerve stimulation implants, and devices used in gastrointestinal and lung procedures.
The company on Tuesday reported greater sales from its heart rhythm device business and its MedSurg business, which sells products used in endoscopic procedures as well as women's health items. Cardiovascular device sales fell, however. A year ago its net income was hurt by costs related to job cuts and litigation.
In the fourth quarter the company's net income rose to $108 million, or 8 cents per share, from $60 million, or 4 cents per share. Boston Scientific said it earned 21 cents per share excluding one-time costs, up from 18 cents per share in the fourth quarter of 2012. Revenue rose 1 percent, to $1.84 billion from $1.82 billion.
Analysts expected net income of 12 cents per share and $1.83 billion in revenue, according to FactSet.
Shares of Boston Scientific lost 41 cents, or 3.2 percent, to $12.60 in morning trading. The stock has climbed almost 70 percent over the last year and reached a five-year high of $14.08 in January.
The Natick, Mass., company said sales of heart rhythm devices rose 5 percent to $518 million. MedSurg revenue rose 9 percent to $613 million on greater sales of endoscopy equipment and neuromodulation pain while cardiovascular revenue fell 4 percent to $705 million.
A year ago Boston Scientific said it would cut up to 1,000 jobs in response to a new medical device tax from the U.S. health care overhaul, limited growth prospects in certain markets and pressure to cut prices on its products in other countries. The company said it wanted to cut annual spending by as much as $375 million in 2013.
For the full year Boston Scientific Corp. lost $121 million, or 9 cents per share. It lost $4.07 billion, or $2.89 per share, in 2012. Revenue fell 1 percent, to $7.14 billion from $7.25 billion.
The company said it expects to earn 35 to 40 cents per share in 2014. Excluding costs related to restructuring, divestitures and acquisitions, it forecast net income of 75 to 80 cents per share, and it is calling for revenue of $7.3 billion to $7.5 billion.
Analysts expect net income of 52 cents per share and $7.42 billion in revenue on average.