Boston Scientific Q4 Results Tops Estimates, Guides Q1, 2014 EPS Above View

(RTTNews) - Medical device maker Boston Scientific Corp. (BSX) reported Tuesday a profit for the fourth quarter that surged from last year, reflecting lower charges and sales growth. Striping down the charges, adjusted earnings per share topped analysts' expectations, and quarterly revenues came in above their estimates by a whisker.

The company also provided earnings guidance for the first quarter, and for the full-year 2014, both above Street view.

"I am pleased with our results for the quarter and our return to operational revenue growth for the full year 2013. This marks our third consecutive quarter of accelerated operational revenue growth and we look forward to continued improvement of our annual sales and earnings performance in 2014," President and CEO Mike Mahoney said.

The Natick, Massachusetts-based company reported net income of $108 million or $0.08 per share for the fourth quarter, higher than $60 million or $0.04 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $290 million or $0.21 per share, compared to $252 million or $0.18 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales for the quarter increased 1 percent to $1.84 billion from $1.82 billion in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $1.83 billion by a whisker. On a constant currency basis, sales grew 3 percent.

Emerging markets net sales grew 14 percent and was 8 percent to total worldwide sales.

Cardiovascular sales declined 4 percent to $705 million, with interventional cardiology sales decreasing 6 percent, while peripheral interventions sales grew 3 percent. Rhythm management sales grew 5 percent to $518 million, with cardiac rhythm management sales improving 2 percent and electrophysiology sales rising 33 percent.

MedSurg sales grew 9 percent to $613 million, with endoscopy sales increasing 4 percent, urology/women's health sales increasing 2 percent, and neuromodulation sales rising 32 percent.

For fiscal 2013, the company reported a net loss of $121 million or $0.09 per share, sharply narrower than $4.07 billion or $2.89 per share in the prior year, which was impacted by hefty goodwill impairment charge.

Excluding items, adjusted net income for the year was $991 million or $0.73 per share, compared to $933 million or $0.66 per share in the year ago. Analysts expected the company to report earnings of $0.45 per share for fiscal 2013.

Worldwide net sales for the full year edged down 1 percent to $7.14 billion from $7.25 billion in the previous year. Street was looking for full-year 2013 revenues of $7.14 billion.

Looking ahead to the first quarter, the company expects adjusted earnings in a range of $0.16 to $0.18 per share, on projected revenues between $1.755 billion and $1.805 billion. Analysts expect the company to report earnings of $0.12 per share for the quarter, on quarterly revenues of $1.80 billion.

For fiscal 2014, the company projects adjusted earnings in the range of $0.75 to $0.80 per share, on anticipated revenues between $7.30 billion and $7.50 billion. Street is currently looking for full-year 2014 earnings of $0.52, on annual revenues of $7.41 billion.

BSX closed Monday's regular trading session at $13.01, down $0.54 on a volume of 18.77 million shares. In the past 52-week period, the stock has been trading in a range of $7.07 to $14.08.